Chỉ thị 02/CT-NHNN

DIRECTIVE

ON REGULATING THE IMPLEMENTATION OF PROVISIONS ON MOBILIZATION INTEREST RATE IN VIETNAMESE DONG AND US DOLLAR BY CREDIT INSTITUTIONS, FOREIGN BANK'S BRANCHES

In the past time, almost credit institutions applied the mobilization interest rate in Vietnamese dong and US dollar that is higher than the interest rate provided for in the Circular No. 02/2011/TT-NHNN dated 03 March 2011 of the State Bank of Vietnam providing for the maximum interest rate applicable to VND capital mobilization (hereinafter shortly referred to as the Circular No. 02/2011/TT-NHNN) and the Circular No. 14/2011/TT-NHNN dated 01 June 2011 of the State Bank of Vietnam providing for the maximum interest rate applicable to USD capital mobilization from organizations, individuals at credit institutions (hereinafter shortly referred to as the Circular No.14/2011/TT-NHNN) in various forms and measures, which seriously violates provisions of the two Circulars mentioned above and potentially causes credit institutions exposed to risk. In order to stabilize the market and facilitate enterprises to access to the fund of banks for their production, business at a reasonable interest rate, the Governor of the State Bank hereby requires as follows:

1. Credit institutions, foreign bank's branches:

a. To strictly observe the mobilization interest rate in Vietnamese dong and US dollar as provided for in the Circular No. 02/2011/TT-NHNN and the Circular No. 14/2011/TT- NHNN.

b. To take initiative in inspecting and detecting any act of violation as to mobilization interest rate in Vietnamese dong and US dollar, conducting the regulation and strictly dealing with the head of any branch, unit of the credit institution that fails to comply with direction of the Governor of the State Bank; at the same time, making and sending report to the State Bank (Banking Inspection and Supervision Department) on any violation and settlement result of the credit institution.

c. To be proactive in identifying and reporting the State Bank on any credit institution, foreign bank's branch that commits an act of unhealthy competition, violating provisions on mobilization interest rate in Vietnamese dong and US dollar at the Circular No.02/2011/TT-NHNN and the Circular No. 14/2011/TT-NHNN.

2. The Banking Inspection and Supervision Department and State Bank's branches in provinces, cities:

a. To establish and maintain a hot line to receive information from organizations and individuals for settlement in accordance with provisions of applicable laws.

b. To check, inspect and supervise the implementation of provisions on capital mobilization interest rate at the Circular No. 02/2011/TT-NHNN and the Circular No.14/2011/TT-NHNN.

3. Measures for dealing with:

For credit institutions that violate provisions on mobilization interest rate as provided for in the Circular No. 02/2011/TT-NHNN and the Circular No. 14/2011/TT-NHNN based on provisions in Paragraph 12 Article 4 and Paragraph 2 Article 59 of the Law on State Bank of Vietnam 2010, the State Bank shall deal with as follows:

a. To suspend or dismiss the manager, executive officer of the relevant credit institution from office in line with provisions in Paragraph 31 and Paragraph 32 Article 4 of the Law on Credit Institutions 2010 where the credit institution is found out to violate provisions on mobilization interest rate at the Circular No. 02/2011/TT-NHNN and the Circular No.14/2011/TT-NHNN The manager, executive officer of the credit institution who is suspended, dismissed shall not be allowed to assume position of a manager, executive officer at the very credit institution within a period of 03 (three) years since the date of suspension, dismissal.

b. To limit the expansion of scope, size, area of activities of the credit institution for a period of one year since the date of settlement.

c. To limit or suspend the mobilization and lending activity of violating unit of that credit institution.

4. Competence to deal with:

a. Director of the Banking Inspection and Supervision Department shall be competent to apply measures for settlement in accordance with provisions in Section 3 of this Directive.

b. Managers of State Bank's branches in provinces, cities under the central Government's management shall be competent to apply measures for settlement as provided for in item a Section 3 of this Directive in respect of executive officers of Transaction Departments, branches of credit institutions in the local area; manager, executive officers of local People's credit funds.

5. Implementation organization:

a. This Directive shall be effective from its signing date.

b. Director of the Administrative Department, Director of Banking Inspection and Supervision Department, Heads of units of the State Bank, Managers of State Bank's branches in provinces, cities under the central Government's management, Chairman of Board of Directors, Chairman of Board of Members and General Directors (Directors) of credit institutions, foreign bank's branches shall be responsible for the deployment and serious implementation of this Directive.