To:       - Credit institutions

- Vietnam Banks Association

In response to the Resolution No.83/NQ-CP dated 5 June 2011 of the Government on the regular Government s meeting in May 2011 and provisions of the State Bank on interest rate, the Governor of the State Bank hereby requires:

1. Credit institutions to comply with provisions on maximum mobilization interest rate in VND as provided for in the Circular No. 02/2011/TT-NHNN dated 03 March 2011 on providing for the maximum interest rate applicable to capital mobilization in Vietnamese dong. At the same time, credit institutions are required to save money to reduce the common level of interest rate, applying loan interest rate at a reasonable level, particularly to the agriculture, rural areas, exports, small and medium enterprises and support industries.

2. It is kindly requested that Vietnam Banks Association shall require its members to seriously implement provisions on interest rate of the Government and the State Bank of Vietnam.

3. The Banking Inspection and Supervision Department and State Bank s branches in provinces, cities shall reinforce inspecting, examining the compliance, implementation of laws by credit institutions and strictly deal with any credit institution which violates provisions of laws on maximum interest rate applicable to capital mobilization in Vietnamese dong by way of restraining the scope and area of business activity, suspending some banking activities, applying prudential ratios in business activity, dealing with administrative measures against the violating organizations and individuals.