CIRCULAR NO 382016TT NHNN DATED DECEMBER 30, 2016, ON METHODS OF CALCULATING AND ACCOUNTING OF REVENUES AND PAYMENTS OF INTERESTS IN DEPOSITING AND LENDING OPERATIONS BETWEEN THE

THE STATE BANK OF
VIETNAM
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

No. 38/2016/TT-NHNN

Hanoi, December 30, 2016

CIRCULAR
ON METHODS OF CALCULATING AND ACCOUNTING OF REVENUES AND PAYMENTS
OF INTERESTS IN DEPOSITING AND LENDING OPERATIONS BETWEEN THE STATE
BANK OF VIETNAM AND CREDIT INSTITUTIONS AND OTHER ORGANIZATIONS
Pursuant to the Civil Code No. 91/2015/QH13 dated November 24, 2015;
Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Accounting No. 88/2015/QH13 on dated November 20, 2015;
Pursuant to the Government's Decree No. 156/2013/ND-CP dated November 11, 2013 defining the
functions, tasks, entitlements and organizational structure of the State bank of Vietnam;
Pursuant to Decision No. 08/2013/QĐ-TTg dated January 24, 2013 of the Prime Minister on
accounting regulations applicable to the State Bank of Vietnam;
At the request of the Director of Department of Finance and Accounting;
The Governor of the State bank of Vietnam promulgates a Circular on methods of calculating and
accounting of revenues and payment of interests in depositing and lending operations between the
state bank of Vietnam and credit institutions and other organizations.
Chapter I
GENERAL PROVISIONS
Article 1. Scope

This Circular deals with:
1. Methods of calculating and accounting of payments of interests on required reserve deposits and
excess reserve deposits of credit institutions, branches of foreign banks; deposits of other
organizations at the State Bank of Vietnam;
2. Methods of calculating and accounting of revenues of interests on loans made between the State
Bank of Vietnam and credit institutions or branches of foreign banks.
Article 2. Regulated entities
1. The State Bank of Vietnam (hereinafter referred to as the State Bank).


2. Credit institutions, branches of foreign banks prescribed in the Law on credit institutions
(hereinafter referred to as credit institutions).
3. Other organizations other than credit institutions that are eligible for making deposits at the State
Bank as prescribed by law (hereinafter referred to as other organizations).
Article 3. Interpretation of terms
For the purposes of this Circular, the terms below shall be construed as follows:
1. Deposits of credit institutions include required reserve deposits, excess reserve deposits of credit
institutions at the State Bank.
2. Deposits of other organizations mean deposits of other organizations at the State Bank.
3. Interest means a sum that a credit institution pays the State Bank for using a sum of loan or a
sum that the State Bank pays a credit institution or another organization for receiving a sum of
deposit.
4. Deposit balance eligible for interest (of credit institution) means deposit balance in excess of
reserve requirement or deposit balance meeting reserve requirement in reserve maintenance period
determined in accordance with regulations on reserve requirement of the State Bank in each period.
5. Deposit balance of other organization mean an actual sum of other organization deposited at the
State Bank.
6. Interest duration means a period of time beginning from the date succeeding the date on which
the State Bank disburse a loan to the date on which principal and interests are fully repaid or from
the date succeeding the date on which the State Bank receive a deposit to the date on which

principal and interests are fully repaid.
7. Interest period means a period of time in an interest duration in which the State Bank determines
interests of deposits or loans of credit institutions and other organizations.
8. Actual loan balance means due principal balance, overdue principal balance, and late payment
interest used for calculating interests agreed upon in a loan contract and as prescribed by law.
Chapter II
SPECIFIC PROVISIONS
Section 1. TAKING DEPOSITS OF CREDIT INSTITUTIONS
Article 4. Methods of calculating interests of deposits of credit institutions
The State Bank and credit institutions will calculate an interest of each interest period as follows:

Interest

=

∑(Deposit balance eligible for interest x number of days maintaining
reserve requirement x interest rate)
365

Where:


+ Number of days maintaining reserve requirement: number of days in which the same interest rate
of reserve maintenance period in the interest period.
+ Interest rate: interest rate of deposits of credit institutions decided by the Governor of the State
Bank in each period (% per year).
Article 5. Paying interests on deposits of credit institutions
Interests on required reserve deposits or excess reserve deposits shall be paid in accordance with
regulations of the State Bank on reserve requirement applicable to credit institutions.
Section 2. TAKING DEPOSITS OF OTHER ORGANIZATIONS

Article 6. Methods of calculating interests of deposits of other organizations
The State Bank and other organizations will calculate interest of each interest period as follows:
1. Daily interest shall be calculated according to the formula below:

Daily interest

=

Opening deposit balance of other organization x Interest rate
365

Interest in interest period equals (=) total daily interest of all days in the interest period.
2. If the number of maintenance days in which deposit balance is higher than 1 day in the interest
period, the State Bank and other organizations shall calculate interest according to the reduced
formula as follows:

Interest

=

∑(Opening deposit balances of other organization in maintenance x
number of days maintaining deposit balance x interest rate) <}0{>
365

Where: Number of days maintaining deposit balance is number of days in which deposit balance of
other organizations remain unchanged.
3. Interest rates prescribed in Clause 1 and Clause 2 of this Article are interest rates of deposits of
credit institutions decided by the Governor of the State Bank in each period (% per year).
Article 7. Paying interests on deposits of other institutions
Interests on deposits of other organizations shall be paid as prescribed by the State Bank.

Section 3. GIVING LOANS
Article 8. Time of overdue outstanding debts
Up to the due date in which a part of or full of principal and/or interests as agreed upon in the
contract must be repaid but the credit institution fails to repay full of principal and/or interests to the
State Bank, the State Bank shall mark the amount of unpaid principal and/or interests as overdue
debt.


Article 9. Methods of calculating loans interest
1. Loan interests include interests on due principal balance, overdue principal balance, and late
payment interests.
2. The State Bank and a credit institution will calculate interest of each interest period as follows:
a) Daily interest shall be calculated according to the formula below:

Daily interest

∑(Opening loan balance x <}0{Interest rate)

=

365

Interest in interest period equals (=) total daily interest of all days in the interest period.
b) If the number of maintenance days in which loan balance is higher than 1 day in the interest
period, the State Bank and the credit institution shall calculate interest according to the reduced
formula as follows:

Interest

=

∑(Opening loan balance x Number of days maintaining loan
balance x Interest rate)
365

Where: Number of days maintaining loan balance is number of days in which loan balance remains
unchanged in the interest period.
3. Interest rate prescribed in Clause 2 of this Article is the interest rate applicable to due principal
balance, overdue principal balance, late payment interests as agreed upon and in accordance with
regulations of the State Bank (% per year).
Article 10. Collecting loan principal and interests
1. The State Bank shall collect loan interests as agreed upon with the credit institution.
In a case where a credit institution must pay principal and interest in the same period without any
agreement on order of repayment of principal and interest in such period, if such credit institution
fails to pay principal and interest in whole on time as agreed, the State Bank shall recover the
principal before the interests
If the credit institution repays debt before the due date without any agreement on order of
repayment of principal and interest, the State Bank shall collect principal and interests at the request
of the credit institution.
2. In case of a foreign currency loan, the State Bank shall collect interests according to the type of
foreign currency used in the loan. If the interests are collected in another foreign currency or
Vietnamese dong, the contract concluded by the State Bank and the credit institution shall be
executed in accordance with law on foreign exchange management.
3. If the day on which the interest is collected falls on the weekend or holiday, it will be moved to
the following working day.
Section 4. ACCOUNTING


Article 11. Rules for accounting
1. The State Bank and credit institutions shall do accounting of interests of depositing, lending, and

borrowing operations in conformity with accounting rules of "accrued interests" and financial
regulations.
2. Revenues and payment of interests in foreign currencies shall be converted into Vietnamese dong
or accounting currency to be included in income or expenditure.
3. Regarding the State Bank:
a) Accrued interest shall be calculated until the end day of the month and the last working day of
the month;
b) Revenues from lending operation that were included in the revenues but they are unearned at the
end of the collection period, the State Bank shall record a decrease in revenues (in the same
accounting period) or record it to the expenditure (in different accounting periods) and include it in
off-balance sheet to expedite the collection. When the amounts are received, they will be included
in the revenues;
c) Interests receivable from overdue loans are not required to be included in the revenues. The State
Bank shall monitor the off-balance sheet to expedite the collection, when an amount is received; it
will be included in the revenues;
d) Competent persons shall install rules for calculating and accounting of interests in the Corebanking, Accounting, Budgeting applications and System Integration for SBV (hereinafter referred
to as accounting application system) in accordance with this Circular and regulations of law on
accounting. The calculating and accounting of interests are conducted in the accounting application
system according to the aforesaid installed rules.
4. Regarding credit institutions: Calculating and checking the accuracy of interests.
Article 12. Doing accounting
1. Depositing operation
a) Regarding the State Bank:
(i) Accounting of accrued interests: At the end of a month, an interest shall be included in the
account earning deposit interest or the account earning accrued interest of the accrued interest
period in the accounting application system according to the preinstalled accounting rules
prescribed in Point d Clause 3 Article 11 hereof. A person in charge shall check the accuracy of
transactions recorded in the system, print accounting vouchers and store them as prescribed.
If the end of the month falls on a weekend or a holiday, the accrued interest until the end of the
month shall be calculated and recorded on the last working day of the month.

(ii) Accounting of interest payment: At the time of paying interests, a person in charge shall enter
information and data into the accounting application system following the procedures for depositing
operation; the person in charge shall check the accuracy of transactions which are processed and
recorded in the system and print accounting vouchers and store them as prescribed;


b) Credit institutions:
Do accounting of depositing operation as prescribed in accounting regulations and financial
regulations applicable to credit institutions and regulations of relevant law provisions.
2. Lending operation
a) Regarding the State Bank:
(i) Accounting of accrued interests: At the end of a month, an interest shall be included in the
account earning loan interest or the accounting earning accrued loan interest of the accrued interest
period in the accounting application system according to the preinstalled accounting rules
prescribed in Point d Clause 3 Article 11 hereof. A person in charge shall check the accuracy of
transactions recorded in the system, print accounting vouchers and store them as prescribed.
If the end of the month falls on a weekend or a holiday, the accrued interest until the end of the
month shall be calculated and recorded on the last working day of the month;
(ii) Accounting of principal and interest: At the time of collecting principal and/or interest,
according to the contract and regulations of this Circular, a person in charge shall enter information
and data into the accounting application system following the procedures for lending operation.
The person in charge shall check the accuracy of transactions that are processed and recorded in the
system, print accounting vouchers and store them as prescribed;
b) Credit institutions:
Do accounting of borrowing operation as prescribed in accounting regulations and financial
regulations applicable to credit institutions and regulations of relevant law provisions.
Article 13. Making, circulating, controlling and storing documents
The State Bank and credit institutions must make sufficient valid and legitimate documents, inspect,
control, circulate and store accounting vouchers as prescribed by the State Bank and relevant law
provisions.

Chapter III
IMPLEMENTATION
Article 14. Responsibilities of the State Bank units
The State Bank units in charge of depositing and lending operations shall calculate and promptly
and accurately record revenues and payment of interests and give Debit and Credit notices to credit
institutions and other organizations in accordance with regulations of law.
Article 15. Rights and responsibilities of credit institutions
1. Each credit institution is entitled to request the State Bank to provide Debit and Credit notices as
prescribed by law.
2. Each credit institution must do calculation and accounting as prescribed in this Circular.


Article 16. Rights and responsibilities of other organizations
Each of other organizations is entitled to request the State Bank to provide Debit and Credit notices
and is responsible for cooperating with the State Bank in collation of interests as prescribed by law.
Article 17. Transitional provisions
The interests occurring from agreements on lending or depositing concluded before the effective
date of this Circular shall be kept calculating as prescribed in Decision No. 652/2001/QD-NHNN
dated May 17, 2001 of the Governor of the State Bank on promulgation of method of calculating
and accounting of revenues and payment of interests of the State Bank and credit institutions. Any
amendment to regulations on the method of calculating interests occurring from agreements on
lending or depositing after the effective date of this Circular shall be consistent with this Circular.
After the effective date of this Circular, in case of an agreement with a provision of automatic
extension, the calculation of interests after extension shall be consistent with this Circular. The State
Bank units shall carry out depositing and lending operations and notify credit institutions and other
organizations of any change to the method of calculating, collecting and paying interests.
Article 18. Implementation
1. This Circular comes into force from February 2, 2017.
2. From the effective date of this Circular, the calculating and accounting of interest collection and
payment in depositing and lending operations between the State bank of Vietnam and credit

institutions or other organizations shall be consistent with this Circular.
3. The Chief officers, the Director of the Department of Finance and Accounting, heads of relevant
entities affiliated to the State Bank, Directors of branches of the State Bank of provinces and
central-affiliated cities, Presidents of the Boards of Directors, Presidents of the Member assembly
and Directors General (Directors) of credit institutions shall implement this Circular./.

P.P GOVERNOR
DEPUTY GOVERNOR

Dao Minh Tu

------------------------------------------------------------------------------------------------------

This translation is made by LawSoft and for reference purposes only. Its copyright is owned by
LawSoft and protected under Clause 2, Article 14 of the Law on Intellectual Property.Your
comments are always welcomed