Tiếng Việt

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 12/2024)

by | Dec 3, 2024 | Banking, EN, Legal Update

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 12/2024

1.1. Circular No. 49/2024/TT-NHNN amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN dated september 30, 2022 of the Governor of the State bank of Vietnam prescribing bank guarantee

  • Name of legal document: Circular No. 49/2024/TT-NHNN issued on 25/10/2024 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN dated september 30, 2022 of the Governor of the State bank of Vietnam prescribing bank guarantee (referred to as the “Circular No. 49/2024/TT-NHNN”).
  • Effective date: 10/12/2024.

The content should be noted: Amending forms of deposits eligible for premature withdrawal.

Specifically, Clause 3 Article 1 of Circular No. 49/2024/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 11/2022/TT-NHNN

…

  1. Amending and supplementing Article 13 as follows:

“Article 13. Off-plan housing guarantee

  1. Commercial banks and foreign bank branches shall consider and decide to grant guarantees to investors whena) Investors meet all requirements specified in Article 11 of this Circular (except for cases where commercial banks and foreign bank branches provide guarantees for investors on the basis of counter-guarantees);b) Investors have received a document from the provincial-level state management agency for real estate business responding to investors about housing that is eligible for sale or lease-purchase.

…

  1. The maximum guarantee amount for each buyer is equal to the total amount the investor is allowed to receive in advance from the buyer as prescribed in Article 25 of the Law on Real Estate Business and other amounts (if any) under the house purchase or hire-purchase contract.

…””

2.       LEGAL DOCUMENTS ARE ISSUED IN 11/2024

2.1. Decision No. 2410/QD-NHNN on maximum interest rates for USD deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024

  • Name of legal document: Decision No. 2410/QD-NHNN issued on 01/11/2024 by the State Bank of Vietnam on maximum interest rates for USD deposits of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024 (referred to as the “Decision No. 2410/QD-NHNN”).
  • Effective date: 20/11/2024.

The content should be noted: Maximum interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches.

Specifically, Article 1 of Decision No. 2410/QD-NHNN stipulates: “Article 1. The maximum interest rate for deposits in US dollars of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 46/2024/TT-NHNN dated September 30, 2024 is as follows:

  1. The interest rate applicable to deposits of organizations (except credit institutions and foreign bank branches) is 0%/year.
  2. The interest rate applicable to deposits of individuals is 0%/year.”

2.2. Decision No. 2411/QD-NHNN on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024

  • Name of legal document: Decision No. 2411/QD-NHNN issued on 01/11/2024 by the State Bank of Vietnam on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024 (referred to as the “Decision No. 2411/QD-NHNN”).
  • Effective date: 20/11/2024.

The content should be noted: Maximum interest rates for deposits in Vietnamese Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches.

Specifically, Article 1 of Decision No. 2411/QD-NHNN stipulates: “Article 1. The maximum interest rate for deposits in Vietnamese Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches as prescribed in Circular No. 48/2024/TT-NHNN dated September 30, 2024 is as follows:

1. The maximum interest rate applicable to non-term deposits and deposits with terms of less than 1 month is 0.5%/year.

2. The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months is 4.75%/year; People’s Credit Funds and Microfinance Institutions apply the maximum interest rate for deposits with terms from 1 month to less than 6 months at 5.25%/year.”