The State Bank of Vietnam (SBV) is drafting a Circular regulating the application of interest rates to deposits in US dollars of organizations and individuals at foreign bank branches and credit institutions.

The Draft Circular regulates the application of maximum interest rates to deposits in US dollars of organizations (excluding foreign bank branches and credit institutions) and individuals at foreign bank branches and credit institutions; deposits include forms of receiving deposits as prescribed in Clause 27, Article 4 of the Law on Credit Institutions 2024.

Subjects of application: foreign bank branches and credit institutions operating in Vietnam according to the provisions of the Law on Credit Institutions, excluding policy banks; organizations (excluding foreign bank branches and credit institutions), and individuals depositing money at credit institutions.

According to the draft, credit institutions apply deposit interest rates in US dollars that do not exceed the maximum interest rate decided by the Governor of the State Bank in each period for: a- Organizational deposits (excluding credit institutions); b- Individual deposits.

The maximum interest rate for deposits in US dollars specified in this Circular includes promotional payments in all forms, applicable to the end-of-term interest payment method and other interest payment methods regulated the as end-of-term interest payment method..

Credit institutions publicly list deposit interest rates in US dollars at legal transaction locations in the credit institution's operating network and on the credit institution's website (if any). It is strictly forbidden for credit institutions, when receiving deposits, to conduct promotions in any form (in money, interest rates and other forms) that are not in accordance with the provisions of law.

For interest rate agreements on deposits in US dollars before the effective date of the Circular, credit institutions and customers continue to comply with the signed agreement until the end of the term; In case the agreed term expires and the organization or individual does not come to receive the deposit, the credit institution will apply the deposit interest rate as prescribed in this Circular.

Kylie Nguyen