From April 03, 2023: Reduce the maximum interest rate applicable to deposits
On March 31, 2023, the State Bank of Vietnam issues series of Decisions on adjusting the interest rate applicable to deposits from April 03, 2023.
1. Reduce the maximum interest rate applicable to deposits in Vietnam dong
In accordance with the Decision No. 575/QD-NHNN of the State Bank of Vietnam, the maximum interest rate applicable to demand deposits and deposits with term of less than one month shall be from 1.0% per annum to 0.5% per annum.
The maximum interest rate applicable to deposits with a term of one month to less than six months shall be reduced from 6.0% per annum to 5.5%/per annum for People’s credit funds and micro-financial institutions, the maximum interest rate applicable to deposits with a term of one month to less than six months shall be reduced from 6.5% per annum to.
The maximum interest rate applicable to deposits with a term of over six months is based on market supplies and demands.
2. Reduce the short-term loan in Vietnam dong
In accordance with Decision No. 576/QD-NHNN, the State Bank of Vietnam reduces the short-term loan interest in Vietnam dong for the credit institution to satisfy the capital demands in the economic sectors and industries from 5.0%/per annum to 4.5%/ per annum.
People’s credit funds and micro-financial institutions shall apply the maximum short-term loan interest rate in VND which is 5.5 % per annum instead of 6.0% per annum.
3. Reduce the refinancing interest rate
In accordance with Decision No. 574/QD-NHNN on the refinancing interest rate, re-discount interest rate, interest rate of overnight lending in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for credit institutions, foreign bank branches
- The refinancing interest rate is 5.5% per annum instead of 6% per annum;
- The refinancing interest rate is 3.5% per annum;
- The overnight lending interest rate in inter-bank electronic payment and lending to offset the capital shortage in the clearing of the State Bank of Vietnam for credit institutions, and foreign bank branches is 6.0% per annum as before.
This Decision takes effect on April 03, 2023.
