On September 22, 2022, the Governor of the State Bank of Vietnam (SBV) issued Decision No. 1606/QD-NHNN and Decision No. 1607/QD-NHNN adjusting a number of key interest rates, effective from September 23, 2022.
Ever since the beginning of 2022, following closely the resolutions of the National Assembly, the directions of the Government and the Prime Minister, the SBV has operated the monetary policy in a proactive and flexible manner, in close coordination with the fiscal policy and other macroeconomic policies in order to contribute to controlling the inflation at a low level (the average inflation of 8 months of 2022 was 2.58%), supporting the economic growth recovery (in the first 6 months of 2022, GDP growth reached 6.42%), promptly adapting to the economic and monetary developments in both domestic and international markets; thereby, the SBV has managed to maintain the stability of the money and the foreign exchange markets, as well as the operational safety of the banking system.
However, with the international inflation trends remaining high and the domestic market has undergone the second round of hiking pressure on the inflation. Accordingly, the SBV has decided to adjust a number of key interest rates, effective from September 23, 2022, specifically as follows:
Decision No. 1606/QD-NHNN dated September 22, 2022 stipulating the refinancing interest rate, the discount rate and the overnight lending rate in the inter-bank electronic payment system, and the lending rate to cover the capital shortfalls in the clearing system applied to loans extended by the SBV to the credit institutions and the foreign bank branches. Accordingly, the refinancing interest rate is raised from 4% p.a. to 5% p.a. The discount rate is increased from 2.5% p.a. to 3.5% p.a. The overnight lending rate in the inter-bank electronic payment system and the lending rate to cover the capital shortfalls in the clearing system applied to loans extended by the SBV to the credit institutions is adjusted from 5% p.a. to 6% p.a.
Decision No. 1607/QD-NHNN dated September 22, 2022 stipulating the maximum interest rates for deposits in Vietnamese Dong (VND) of organizations and individuals at the credit institutions in line with Circular No. 07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum interest rate applicable to deposits for demand and below 1-month terms increases from 0.2% p.a. to 0.5% p.a.; that for 1-month to below 6-month terms is raised from 4.0% p.a. to 5.0% p.a., while the maximum interest rate applied to deposits in VND at the People's Credit Funds, the Microfinance Institutions increases from 4.5% p.a. to 5.5% p.a.. The maximum interest rate for deposits in VND for 6-month plus terms can be determined by the credit institutions on the basis of market capital supply and demand.
For the interest rates applied to time deposits in VND of organizations and individuals at the credit institutions and the foreign bank branches that were made before the effective date of Decision 1607/QD-NHNN, the applicable interest rates shall remain the same until their maturity dates. In case when the maturity date of a deposit comes but the depositor does not show up to receive the deposit, the respective credit institution or the foreign bank branch shall apply the new interest rates appliable to the deposits in VND as stipulated in this Decision.
LK