From August 1, 2022, will partial early withdrawals still charge interest rates on deposits at foreign bank branches in Vietnam?
- What is early withdrawal according to the latest regulations in Vietnam?
- From August 1, 2022, what is the interest rate applied for partial early withdrawals at foreign bank branches in Vietnam?
- According to current regulations, what is the interest rate for early withdrawal of deposits at foreign bank branches in Vietnam?
- What is the regulation on application of new interest rates in Vietnam?
What is early withdrawal according to the latest regulations in Vietnam?
According to Circular 04/2022/TT-NHNN stipulating the application of interest rates for early withdrawal of deposits at foreign bank branches as follows:
- Early withdrawal of deposit is the case where the customer withdraws part or all of the deposit before the due date, payment date or settlement date of the deposit.
- Credit institutions and customers agree on early withdrawal of deposits in accordance with the regulations of the State Bank of Vietnam for each specific form of deposit. The interest rate for early withdrawal of the deposit is agreed upon in accordance with the provisions of Article 5 of this Circular. In case there is no agreement on early withdrawal of the deposit, the credit institution shall apply the interest rate for early withdrawal of the deposit in accordance with the provisions of this Circular.
From August 1, 2022, what is the interest rate applied for partial early withdrawals at foreign bank branches in Vietnam?
According to Circular 04/2022/TT-NHNN stipulating the application of interest rates for early withdrawal of deposits at foreign bank branches as follows:
In Article 3 of Circular 04/2022/TT-NHNN stipulating the form of deposits with early withdrawal as follows:
- Term savings deposit.
- Term deposits.
- Certificates of deposit, promissory notes, bills and bonds issued by credit institutions.
- Other forms of receipt of term deposits as prescribed in the Law on Credit Institutions.
In Article 5 of Circular 04/2022/TT-NHNN stipulating the interest rate of deposits for early withdrawal as follows:
"Article 5. Interest rate for early withdrawal of deposit
1. In case a customer withdraws all deposits before maturity: the credit institution shall apply the maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to the type of customer and/or according to the currency deposited at the time the customer withdraws before the deposit maturity.
2. In case the customer withdraws part of the deposit before maturity:
a) For deposits with early withdrawal, the credit institution shall apply the maximum interest rate equal to the lowest demand deposit interest rate of that credit institution according to the type of customer and/or type of currency deposited at the time the customer withdraws before the deposit maturity;
b) For the remaining deposit, the credit institution shall apply the current interest rate applicable to the deposit that the customer withdraws a part of before maturity."
From August 1, 2022, will partial early withdrawals still charge interest rates on deposits at foreign bank branches in Vietnam?
According to current regulations, what is the interest rate for early withdrawal of deposits at foreign bank branches in Vietnam?
According to Circular 04/2011/TT-NHNN corrected by Article 1 of Decision 458/QD-NHNN in 2021 as follows:
- Credit institutions apply the maximum interest rate equal to the lowest interest rate on demand deposits of the credit institutions in each currency in case organizations and individuals withdraw deposits before maturity; This interest rate on demand deposits is the lowest at the time when organizations and individuals withdraw deposits before maturity. Deposits include forms of term savings deposits, term deposits, certificates of deposit, promissory notes, bills, bonds and other forms of receiving deposits from organizations (except credit institutions). application), individuals as prescribed in Clause 13, Article 4 of the Law on Credit Institutions.
- Credit institutions publicly list the applicable interest rates in case organizations and individuals withdraw their deposits before maturity at locations of capital mobilization (headquarters, transaction offices, branches, transaction offices, funds). save). The deposit interest rate agreements before the effective date of this Circular, the parties will continue to comply with the committed agreement until the payment due date; or agree to comply with the provisions of this Circular.
What is the regulation on application of new interest rates in Vietnam?
According to Article 6 of Circular 04/2022/TT-NHNN stipulating the application of interest rates for early withdrawal of deposits at foreign bank branches as follows:
- This Circular takes effect from August 1, 2022 and replaces Circular No. 04/2011/TT-NHNN dated March 10, 2011 of the Governor of the State Bank of Vietnam regulating the application of interest rates. in case organizations or individuals withdraw their deposits before maturity at credit institutions.
- For agreements on interest rates for early withdrawal of deposits before the effective date of this Circular, credit institutions and customers will continue to comply with the committed agreement until the maturity date, payment date. or the payment date of the deposit or the agreement to comply with the provisions of this Circular.
What is the operation content of a foreign bank branch?
According to Article 123 of the Law on Credit Institutions 2010, the operation contents of foreign bank branches are as follows:
- Foreign bank branches may conduct operations specified in Section 2, Chapter IV of this Article, except the following operations:
+ Those specified in Article 103 of this Law;
+ Operations which the foreign banks concerned arc not licensed to conduct in the countries in which they are headquartered.
- Foreign bank branches may only provide some foreign exchange services in the international market to their clients in Vietnam under the foreign exchange law.
- The State Bank shall specify the operation contents of a foreign bank branch in its license under this Law in conformity with the size, type and area of operation of the foreign bank.
Thus, from August 1, 2022, partial early withdrawals will still be charged interest at branches of foreign banks according to the above regulations.
Circular 04/2022/TT-NHNN takes effect from August 1, 2022.
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