How does the State Bank of Vietnam adjust interest rates of deposits in VND made by Vietnam Development Bank, People's Credit Funds, and Microfinance Institutions?
- What is the deposit interest rate in VND of the Vietnam Development Bank, the Bank for Social Policies, and the People's Credit Fund according to Decision 1350/QD-NHNN in 2020?
- What is the change of deposit interest rates in VND made by Vietnam Development Bank, People's Credit Funds, and Microfinance Institutions?
- What are the responsibilities and powers of the Vietnam Development Bank?
What is the deposit interest rate in VND of the Vietnam Development Bank, the Bank for Social Policies, and the People's Credit Fund according to Decision 1350/QD-NHNN in 2020?
Pursuant to Article 1 of Decision No. 1350/QD-NHNN in 2020 stipulating as follows:
Interest rates of deposits in Vietnam Dong made by Vietnam Development Bank, Vietnam Bank for Social Policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam are as follows:
1. The interest rate of deposits made by Vietnam Development Bank: 0.8%/year.
2. The interest rate of deposits made by Vietnam Bank for Social Policies: 0.8%/year.
3. The interest rate of deposits made by people’s credit funds: 0.8%/year.
4. The interest rate of deposits made by microfinance institutions: 0.8%/year.
Thus, the interest rate on deposits in Vietnam Dong of the Vietnam Development Bank, the Bank for Social Policies, the People's Credit Fund, and the Microfinance Institution at the State Bank of Vietnam is 0.8. %/year.
How does the State Bank of Vietnam adjust interest rates of deposits in VND made by Vietnam Development Bank, People's Credit Funds, and Microfinance Institutions?
What is the change of deposit interest rates in VND made by Vietnam Development Bank, People's Credit Funds, and Microfinance Institutions?
On March 31, 2023, the State Bank of Vietnam issued decisions to reduce operating interest rates, effective from April 3, 2023.
Regarding deposit interest rates in VND of Vietnam Development Bank, Bank for Social Policies, People's Credit Funds, Microfinance Institutions, the State Bank of Vietnam has issued Decision No. 578/QD-NHNN in 2023 on deposit interest rates of Vietnam Development Bank, Bank for Social Policies, People's Credit Fund, Microfinance institutions at the State Bank.
Specifically, in Article 1 of Decision No. 578/QD-NHNN in 2023, the State Bank has regulated the interest rate applicable to deposits in VND of the Vietnam Development Bank, the Bank for Social Policies, and the People's Credit Fund, microfinance institutions in the State Bank is 0.5%/year.
This Decision takes effect from April 3, 2023 and replaces Decision 1350/QD-NHNN in 2020. That is, from April 3, 2023, interest rates for deposits in VND of Vietnam Development Bank, Bank for Social Policies, People's Credit Funds, and Microfinance Institutions will decrease from 0.8 %/year to 0.5%/year.
What are the responsibilities and powers of the Vietnam Development Bank?
Pursuant to Article 11 of the Charter issued together with Decision No. 1515/QD-TTg in 2015 stipulating as follows:
(1) Responsibilities
- Carry out the activities specified in Article 10 of this Charter;
- Manage and use capital and assets assigned by the Government to the Vietnam Development Bank in accordance with the provisions of law and this Charter;
- To fully and timely repay principal and interest for all capital mobilized by the Vietnam Development Bank from domestic and foreign organizations as committed;
- Make public and transparent reports on operations and finances; comply with the regime of statistical reporting to competent agencies as prescribed;
- Preserve capital and apply capital preservation measures; take responsibility for the loss of capital assigned by the State and mobilized capital in accordance with law.
(2) Powers
- To open deposit accounts at the State Bank of Vietnam, the State Treasury, domestic and foreign commercial banks in accordance with law; open accounts for domestic and foreign customers in accordance with the law; refinancing loans at the State Bank of Vietnam under the guidance of the State Bank of Vietnam;
- To establish subsidiaries or participate in the establishment of domestic and foreign affiliated companies to manage, exploit and sell assets to recover debts after obtaining the consent of the Prime Minister;
- Request the customer to provide documents related to the investment project, business plan, financial capacity and capacity of the customer;
- Appraisal of projects, financial plans, business plans, debt repayment plans of customers, customer capacity, credit granting decisions;
- Refusing to lend or guarantee credit to small and medium-sized enterprises to borrow capital from commercial banks for customers, projects, loans and guarantees that do not meet the prescribed conditions;
- Check and supervise the use of loan capital and debt repayment by customers;
- Termination of the loan; early debt recovery; stop and withdraw the post-investment support amount when detecting that customers provide false information, violate contracts, violate the law; refuse to perform credit guarantee obligations in accordance with the law on credit guarantee for small and medium-sized enterprises to borrow capital from commercial banks;
- To sue the customer or the guarantor for breach of the contract in accordance with the law;
- To be handled according to the provisions of this Charter and relevant laws;
- When the debt is due, if the parties do not agree otherwise but the customer fails to pay the debt, the Vietnam Development Bank is entitled to sell the loan security property to recover the debt in accordance with the law;
- To request tax authorities, customs offices, credit institutions and agencies and units with functions to manage, collect information and provide information in accordance with the provisions of law related to customers who borrow or are applying for loans from the Vietnam Development Bank; customers are small and medium enterprises whose loans are guaranteed by the Vietnam Development Bank or are applying for commercial bank loan guarantees to serve the tasks of lending and credit guarantee for small and medium enterprises of the Vietnam Development Bank.
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