What is the maximum interest rate for deposits in Vietnamese Dong from November 20, 2024?
Decision No. 2411/QD-NHNN in 2024 on the maximum interest rates for deposits in Vietnamese Dong from November 20, 2024
On November 1, 2024, the Governor of the State Bank of Vietnam issued Decision No. 2411/QD-NHNN in 2024 regarding the maximum interest rates for deposits in Vietnamese Dong by organizations and individuals at credit institutions and foreign bank branches as stipulated in Circular No. 48/2024/TT-NHNN.
The maximum interest rates for deposits in Vietnamese Dong at credit institutions and foreign bank branches are set as follows:
- A maximum interest rate of 0.5% per annum is applied to demand deposits and deposits with terms of less than 1 month.
- A maximum interest rate of 4.75% per annum is applied to deposits with terms from 1 month to less than 6 months; meanwhile, People’s Credit Funds and Microfinance Institutions apply a maximum interest rate of 5.25% per annum for deposits with terms from 1 month to less than 6 months.
Decision No. 2411/QD-NHNN in 2024 takes effect from November 20, 2024.
What is the maximum interest rate for deposits in Vietnamese Dong from November 20, 2024? (Image from the Internet)
What are prohibited acts for credit institutions in Vietnam?
According to Article 15 of the Law on Credit Institutions 2024, the following acts are prohibited in credit institutions:
- Credit institutions and foreign bank branches engaging in banking activities or other business activities beyond those recorded in the License granted by the State Bank to credit institutions and foreign bank branches.
- Organizations and individuals who are not credit institutions or foreign bank branches performing banking activities, except for margin transactions and repurchase agreement transactions of securities companies.
- Organizations and individuals unlawfully interfering in the banking activities or other business operations of credit institutions and foreign bank branches.
- Credit institutions and foreign bank branches performing restrictive competition acts or unfair competition acts that may jeopardize or harm the implementation of national monetary policy, the safety of the credit institution system, the state's interests, or the lawful rights and interests of organizations and individuals.
- Credit institutions, foreign bank branches, managers, operators, or staff of credit institutions, and foreign bank branches attaching non-mandatory insurance product sales to the provision of banking products and services in any form.
Who is the legal representative of the credit institution in Vietnam?
Pursuant to Article 11 of the Law on Credit Institutions 2024, the legal representative of a credit institution is prescribed as follows:
Article 11. The Legal Representative of a Credit Institution
- The legal representative of a credit institution is stipulated in the Charter of the credit institution and must be one of the following persons:
a) The Chairman of the Board of Directors or the Chairman of the Members' Council of the credit institution;
b) The General Director (Director) of the credit institution.
- The legal representative of a credit institution must reside in Vietnam. In the absence of the legal representative from Vietnam, a written authorization must be given to another person who is a manager or operator of the credit institution residing in Vietnam to perform the rights and obligations of the legal representative of the credit institution.
- The credit institution must notify the State Bank regarding the legal representative of the credit institution within 10 days from the date of election or appointment of the position of the legal representative as prescribed by the Charter, or when there is a change in the legal representative. The State Bank shall inform the business registration authority for updating in the national business registration system and cooperatives registry.
The legal representative of a credit institution is stipulated in the Charter of the credit institution and must be one of the following:
- The Chairman of the Board of Directors or the Chairman of the Members' Council of the credit institution
- The General Director (Director) of the credit institution
