MONTHLY LEGAL UPDATE – 09/2020: LEGAL UPDATE RELATING TO FINANCE AND CREDIT
v Name of legal document: Decision No. 1349/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing interest rates of required reserves and excess reserves of credit institutions and foreign bank branches at the State Bank of Vietnam (referred to as the “Decision No. 1349/QD-NHNN”).v Effective date: 06/08/2020.Some contents should be noted:
· Firstly, providing interest rates of
required reserves and excess reserves deposited by credit institutions and
foreign bank branches at the State Bank of Vietnam.
Specifically, Article 1 of Decision
No. 1349/QD-NHNN stipulates: “Article
1. Interest rates of required reserves and excess reserves deposited by
credit institutions and foreign bank branches at the State Bank of Vietnam are
as follows:
1. The interest rate of required reserves deposited in Vietnam Dong:
0.5%/year.
2. The interest rate of required reserves deposited in foreign
currency: 0%/year.
3. The interest rate of excess reserves deposited in Vietnam Dong:
0%/year.
4. The interest rate of excess reserves deposited in foreign currency:
0.05%/year.”
·
Secondly, Decision No. 1349/QD-NHNN
comes into force from August 06, 2020 and supersedes the Decision No. 421/QD-NHNN dated
March 16, 2020 of the Governor of the State Bank of Vietnam.
Specifically, Article 2 of Decision
No. 1349/QD-NHNN stipulates: “Article
2. This Decision comes into force from August 06, 2020 and supersedes the
Decision No. 421/QD-NHNN dated March 16, 2020 of the Governor of the
State Bank of Vietnam prescribing interest rates of required reserves and
excess reserves deposited by credit institutions and foreign bank branches at
the State Bank of Vietnam.”
v Name of legal document: Decision No. 1350/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing 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 (referred to as the “Decision No. 1350/QD-NHNN”).v Effective date: 06/08/2020.Some contents should be noted:
·
Firstly, providing 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.
Specifically, Article 1 of
Decision No. 1350/QD-NHNN stipulates: “Article
1. 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.”
·
Secondly, Decision No. 1350/QD-NHNN comes into force
from August 06, 2020 and supersedes the Decision No. 422/QD-NHNN dated
March 16, 2020 of the Governor of the State Bank of Vietnam.
Specifically, Article 2 of
Decision No. 1350/QD-NHNN stipulates: “Article
2. This Decision comes into force from August 06, 2020 and supersedes the
Decision No. 422/QD-NHNN dated March 16, 2020 of the Governor of the
State Bank of Vietnam prescribing 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.”
v Name of legal document: Decision No. 1351/QD-NHNN issued on 06/08/2020 by the State Bank of Viet Nam prescribing interest rates of deposits made by state treasury and deposit insurance of Vietnam at the State Bank of Vietnam (referred to as the “Decision No. 1351/QD-NHNN”).v Effective date: 06/08/2020.Some contents should be noted:
· Firstly, providing
interest rates of deposits made by State Treasury and Deposit Insurance of
Vietnam at the State Bank of Vietnam.
Specifically, Article 1 of
Decision No. 1351/QD-NHNN stipulates: “Article
1. Interest rates of deposits made by State Treasury and Deposit Insurance
of Vietnam at the State Bank of Vietnam are as follows:
1. The interest rate of deposits in Vietnam Dong made by State
Treasury: 0.8%/year.
2. The interest rate of deposits in foreign currency made by the State
Treasury: 0.05%/year.
3. The interest rate of deposits in Vietnam Dong made by Deposit
Insurance of Vietnam: 0.8%/year.”
· Secondly, Decision
No. 1351/QD-NHNN
comes into force from August 06, 2020 and supersedes the Decision
No. 423/QD-NHNN dated March 16, 2020 of the Governor of the State Bank
of Vietnam.
Specifically, Article 2 of
Decision No. 1351/QD-NHNN stipulates: “Article
2. This Decision comes into force from August 06, 2020 and supersedes the
Decision No. 423/QD-NHNN dated March 16, 2020 of the Governor of the
State Bank of Vietnam prescribing interest rates of deposits made by State
Treasury and Deposit Insurance of Vietnam at the State Bank of Vietnam.”
v Name of legal document: Circular No. 08/2020/TT-NHNN issued on 14/08/2020 by the Governor of the State Bank amending, supplementing to a number of articles of the Circular No.22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches (referred to as the “Circular No. 08/2020/TT-NHNN).v Effective date: 01/10/2020.The content should be noted: Amending and supplementing regulations on compliance with the maximum ratio of short-term capital for provision of medium-term and long-term loans according to the roadmap specified in Clause 5, Article 16 of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches.
Specifically, Article 1 Circular No. 08/2020/TT-NHNN stipulates: “Article 1. Amending, supplementing to a number of articles of the Circular No.22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam limits and prudential ratios of banks and foreign bank branches
Clause 5
Article 16 is amended, supplemented as follow:
“5. Banks and / or foreign bank branches must comply with the maximum
ratio of short-term capital for provision of medium-term and long-term loans
according to the following roadmap:
a) From January 1, 2020 to the end of September 30, 2021: 40%;
b) From October 1, 2021 to the end of September 30, 2022: 37%;
c) From October 1, 2022 to the end of September 30, 2023: 34%;
d) From October 1, 2023: 30%.””
