According to the drafting agency, on January 18, 2024, the Law on CCIs was passed by the National Assembly and took effect from July 01, 2024 (Law on CCIs of 2024). Article 4, Clause 27, thereof, stipulates: Receiving deposits is an activity of receiving money from organizations and individuals in the form of non-term deposits, term deposits, savings deposits, issuing certificates of deposit, and other forms of receiving deposits based on the principle of fully refunding the principal and interest as agreed upon to the organizations and individuals depositing money (hereinafter referred to as depositors). Article 114, Clause 2(b), Article 119, Clause 2(b), Article 124, Clause 2(b), Article 125, Clause 1(b), and Article 131, Clause 1, stipulate that the activity of issuing bonds is included in other business activities of CCIs.
Meanwhile, Clause 3, Article 1 of Circular No. 07/2014/TT-NHNN by the Governor of the State Bank of Vietnam stipulates the interest rate on deposits in Vietnamese dong by organizations and individuals at CCIs, stating that: Deposits include forms of non-term deposits, term deposits, savings deposits, certificates of deposit, promissory notes, credit notes, bonds, and other forms of receiving deposits of organizations (except CCIs) and individuals as stipulated in Clause 13, Article 4 of the Law on CCIs.
Thus, based on a review of relevant regulations in Circular No. 07/2014/TT-NHNN and to conform with the aforesaid regulations in the Law on CCIs of 2024, the SBV needs to issue a Circular replacing Circular 07/2014/TT-NHNN.
Based on the SBV Law and the Law on CCIs of 2024, and relevant legal provisions, the SBV drafts a Circular regulating the application of interest rates on deposits in Vietnamese dong by organizations and individuals at CCIs and branches of foreign banks (CCIs). The draft Circular regulates the application of interest rates on deposits in Vietnamese dong by organizations (excluding CCIs and branches of foreign banks) and individuals at CCIs and branches of foreign banks; deposits include forms of receiving deposits as stipulated in Clause 27, Article 4 of the Law on CCIs of 2024.
Applicable entities: CCIs operating in Vietnam as prescribed by the Law on CCIs, excluding policy banks; organizations (excluding CCIs) and individuals depositing money at CCIs.
Under the draft, CCIs apply interest rates on deposits in Vietnamese dong by organizations and individuals not exceeding the maximum interest rates on non-term deposits, term deposits under 1 month, and term deposits from 1 month to under 6 months, decided by the SBV Governor for each period and for each type of CCI.
For term deposits of 6 months or more by organizations and individuals based on supply and demand for capital in the market. At the same time, the draft Circular supplements and amends the regulation that CCIs must publicly announce interest rates on deposits in Vietnamese dong at legal transaction locations within the credit institution’s operational network and post them on the credit institution’s website (if any), to be consistent with the regulations in the Circulars issued by the SBV on deposits.
For agreements on interest rates on deposits in Vietnamese dong entered into prior to the effective date of the Circular, CCIs and customers continue to implement the signed agreement until its expiration; in case the agreed-upon term expires and the organization or individual does not come to withdraw the deposit, the CCI applies the interest rate on deposits as prescribed in this Circular.
