Quyết định 16/2008/QD-NHNN

DECISION

ON MANAGEMENT MECHANISM OF BASE INTEREST RATES IN VND

THE GOVERNOR OF THE STATE BANK

-  Pursuant to the Law on the State Bank of Vietnam in 1997; the Law on amendment, supplement of several articles of the Law on State Bank of Vietnam in 2003;
- Pursuant to the Law on the Credit Institutions in 1997; the Law on amendment, supplement of several articles of the Law on Credit Institutions in 2004;
- Pursuant to the Civil Code in 2005;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for functions, duties, authorities and organizational structure of the State Bank of Vietnam;
- Pursuant to the direction of the Prime Minister stated in the Dispatch No. 3168/VPCP-KTTH dated 16 May 2008 on the management mechanism of base interest rates;
- Upon the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1. To provide for the management of base interest rate in Vietnamese Dong to make basis for the determination of business interest rates by credit institutions as follows:

1. Credit institutions shall determine the business interest rate (mobilization interest rate, lending interest rate) in Vietnamese Dong applicable to customers not in excess of 150% of the base interest rate announced by State Bank of Vietnam for application from time to time.

2. On a monthly basis, the State Bank of Vietnam shall announce the base interest rate. In case of necessity, the State Bank of Vietnam shall timely announce the adjustment of base interest rates.

Article 2. This Decision shall be effective since 19 May 2008. The Decision No. 546/2002/QD-NHNN dated 30 May 2002 on the implementation of the mechanism of negotiable interest rates in VND commercial credit activities of credit institutions for customers shall cease its effectiveness.

Article 3. Director of Administrative Department, Director of Monetary Policy Department and Heads of units of the State Bank, General Manager of State Bank branches in provinces, cities under central Government’s management, Board of Directors and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.