Vietnam: Interest rates on deposits of state credit institutions at Policy Banks

According to Article 4 of Circular No. 23/2013/TT-NHNN of the State Bank of Vietnam, the interest rate for deposits in Vietnamese Dong of state credit institutions at the Bank for Social Policies is determined as follows:

In which:

- (b) is the general average of capital mobilization interest rates in Vietnamese Dong as of December 31 of the previous year of state credit institutions, calculated according to the weighted average method of interest rates of different types of mobilized capital sources specified in Clause 2 Article 3 of Circular No. 23/2013/TT-NHNN;

- (c) is the average capital mobilization cost agreed upon by the Bank for Social Policies and state credit institutions but the maximum is 1.35%/year.

However, in case the capital mobilization interest rate of state credit institutions has large fluctuations compared to the interest rate at the time of previous announcement:

- The State Bank of Vietnam considers adjusting the average interest rate for capital mobilization in Vietnamese Dong based on the request of state credit institutions or the Bank for Social Policies and notifies state credit institutions and the Bank for Social Policies as a basis for determining deposit interest rates for the remainder of the year. The adjusted average interest rate for capital mobilization in Vietnam Dong is the average interest rate for capital mobilization in Vietnam Dong of state-owned credit institutions at the time of adjustment, calculated according to the weighted average method of interest rates of different types of mobilized capital sources specified in Clause 2 Article 3 of Circular No. 23/2013/TT-NHNN;

- For 2013, based on the request of the state credit institution or the Bank for Social Policies, the State Bank of Vietnam determines and announces the average interest rate for capital mobilization in Vietnamese Dong as a basis for determining deposit interest rates of state credit institutions at the Bank for Social Policies from July 1, 2013 to December 31, 2013.

The deposit interest payment term will be agreed upon by the Bank for Social Policies with state credit institutions in accordance with the regulations of the State Bank of Vietnam on interest calculation and payment methods.

View full text at Circular No. 23/2013/TT-NHNN of the State Bank of Vietnam, effective from January 02, 2014.

Thu Ba

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