Tiếng Việt

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 11/2024)

by | Nov 7, 2024 | Banking, EN, Legal Update

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 11/2024

1.1. Circular No. 46/2024/TT-NHNN regulating the application of interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches

  • Name of legal document: Circular No. 46/2024/TT-NHNN issued on 30/09/2024 by the State Bank of Vietnam regulating the application of interest rates on US dollar deposits of organizations and individuals at credit institutions and foreign bank branches (referred to as the “Circular No. 46/2024/TT-NHNN”).
  • Effective date: 20/11/2024.

The content should be noted: Stipulating interest rates on deposits in US dollars.

Specifically, Article 3 of Circular No. 46/2024/TT-NHNN stipulates: “Article 3. Interest rates

  1. Credit institutions shall apply interest rates on deposits in US dollars not exceeding the maximum interest rates decided by the Governor of the State Bank of Vietnam from time to time for:a) Deposits of organizations.b) Deposits of individuals.
  2. The maximum interest rates on deposits in US dollars prescribed in this Circular include promotional expenses in all forms, applied to the method of paying interest at the end of the term and other interest payment methods converted according to the method of paying interest at the end of the term.
  3. Credit institutions shall publicly post interest rates on deposits in US dollars at legal transaction locations within the credit institution’s network of operations and post them on the credit institution’s website (if any). When receiving deposits, credit institutions shall not conduct promotions in any form (in cash, interest rates and other forms) that are not in accordance with the provisions of law.”

1.2. Circular No. 47/2024/TT-NHNN amendment of clause 3, Article 3 of Circular No. 04/2022/TT-NHNN dated june 16, 2022 of the Governor of the State bank of Vietnam regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches

  • Name of legal document: Circular No. 47/2024/TT-NHNN issued on 30/09/2024 by the State Bank of Vietnam amendment of clause 3, Article 3 of Circular No. 04/2022/TT-NHNN dated june 16, 2022 of the Governor of the State bank of Vietnam regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches (referred to as the “Circular No. 47/2024/TT-NHNN”).
  • Effective date: 20/11/2024.

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

Specifically, Article 1 of Circular No. 47/2024/TT-NHNN stipulates: “Article 1. Amend Clause 3, Article 3 of Circular No. 04/2022/TT-NHNN[1] as follows:

“3. Deposit certificates issued by credit institutions.””

2.       LEGAL DOCUMENTS ARE ISSUED IN 10/2024

2.1. 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 when:
  2. a) 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);
  3. 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.

…””

[1] Article 3 of Circular No. 04/2022/TT-NHNN: “Article 3. Forms of deposits eligible for premature withdrawal

  1. Time savings deposits 2. Time deposits. 3. Deposit certificates, bills, treasury bills, and bonds issued by credit institutions. 4. Other forms of receiving time deposits according to the Law on Credit Institutions of Vietnam.”