Decision No. 1938 QD-NHNN on maximum deposit interest rates in USD dollars applied to organizations and individuals at credit institutions

1 BANK Of ZAMBIA S S U U R R V V E E Y Y O O N N H H O O W W C C O O M M M M E E R R C C I I A A L L B B A A N N K K S S D D E E T T E E R R M M I I N N E E L L E E N N D D I I N N G G I I N N T T E E R R E E S S T T R R A A T T E E S S I I N N Z Z A A M M B B I I A A September 2010 2 1.0 I I n n t t r r o o d d u u c c t t i i o o n n 1.1 As Government has indicated its intention to shift monetary policy away from monetary targeting towards interest rate targeting, the Bank of Zambia (BoZ) has embarked on conducting preliminary research to assess the feasibility of an interest rate targeting framework in Zambia. Gaining a thorough understanding of the interest rate decision-making process undertaken by commercial banks in Zambia would not only assist in the determination of an appropriate policy rate, but would also enable the Bank of Zambia to ascertain the transmission channel through which the policy rate would be most effective. 1.2 Evidence from numerous interest rate targeting central banks indicates that the policy rate should be aimed at influencing developments in the interbank rate, which is then expected to affect borrowing costs along the yield curve. The interbank market is therefore expected to play a crucial role in the implementation of the interest rate targeting framework. 1.3 Investigating why the lending rates are high was also an area of great policy interest. 1.4 The main objective of the survey was therefore to identify the factors, both quantitative and qualitative, that commercial banks consider in making decisions regarding their base lending rates. The specific objectives were twofold: (a) Assess to what extent the interbank market influenced the cost of funds in the interest rate determination process; and, (b) Ascertain which factors have significantly contributed to the high level of lending interest rates currently prevailing in the market. 1.5 The key question posed to commercial banks was: What factors do you take into consideration when determining the base lending rate for Kwacha/Foreign currency loans? A formal model of the calculation method for determining the base rate was also requested, as well as the minutes from Assets and Liabilities Committee (ALCO) meetings in which the interest rate decisions were discussed. All of the 18 registered commercial banks in Zambia were surveyed over the period 1 st – 12 th March, 2010. 1.6 Overall, it was observed that the most common factors considered in the rate setting process were, as expected, the regulatory cash reserve requirements – namely, the statutory reserve ratio (8%), core liquid asset ratio (9%) and the BoZ supervisory fee (0.2% of deposits). Other factors which were considered significant in the determination of base lending rates included: Treasury bill and GRZ bond yield rates; operating costs; cost of funds, i.e. weighted average deposit rates; return on shareholder’s equity and the cost of non- performing loans. The qualitative factors highlighted included, credit risk premiums, the demand and supply for credit and the industry trend in base lending rates. 1.7 The survey results indicated that only half of the banks surveyed considered inflation explicitly in their determination of base lending rates; although some banks indicated that inflation was taken into account when calculating real returns. It was also found that almost all the banks do not consider the interbank rate, or the BoZ overnight facility rate in their calculation of base Công ty Luật Minh Gia www.luatminhgia.com.vn THE STATE BANK OF VIETNAM Decision No 1938/QD-NHNN dated September 25, 2015 of the State Bank of Vietnam dated September 25, 2015, on maximum deposit interest rates in USD dollars applied to organizations and individuals at credit institutions and foreign bank branches prescribed in Circular No 06/2014/TT-NHNN dated March 17, 2014 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 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 Circular No 06/2014/TT-NHNN dated March 17, 2014 of the Governor of the State bank of Vietnam on maximum deposit interest rates in USD dollars applied to organizations and individuals at credit institutions; At the request of the Director of Financial Policy Department, DECIDES: Article The maximum deposit interest rates in USD dollars applicable to organizations or individuals according to provisions set out in Circular No 06/2014/TT-NHNN dated March 17, 2014 as follows: Maximum rate of interest on deposits made by organizations (excluding credit institutions and branches of foreign banks) is 0% per year Maximum rate of interest on deposits made by individuals is 0.25% per year Article This Decision takes effect on September 28, 2015 and replaces Decision No 2172/QD-NHNN dated October 28, 2014 of the Governor of the State bank of Vietnam on maximum deposit interest rates in USD dollars applied to organizations or individuals at credit institutions and foreign bank branches prescribed in Circular No 06/2014/TT-NHNN dated March 17, 2014 Rates of interest on deposits in US dollars made by organizations, individuals at credit institutions, branches of foreign banks before the effective date of this LUẬT SƯ TƯ VẤN PHÁP LUẬT 24/7: 1900 6169 Công ty Luật Minh Gia www.luatminhgia.com.vn Decision shall remain unchanged until their maturity dates In case the depositors not withdraw the deposit after their maturity dates, the credit institutions and branches of foreign banks shall apply deposit interest rates prescribed in this Decision Article The Chief Officers, the Director of the Financial Policy Department and heads of organizations affiliated to the State Bank of Vietnam, directors of the State Bank of central-affiliated provinces and cities; President of the Board of Directors, President of Member Council and General Director of credit institutions, branches of foreign banks shall implement this Decision./ For the Governor The Deputy Governor Nguyen Thi Hong LUẬT SƯ TƯ VẤN PHÁP LUẬT 24/7: 1900 6169 Bank mergers and the dynamics of deposit interest rates Ben R. Craig (Deutsche Bundesbank and Federal Reserve Bank of Cleveland) Valeriya Dinger (University of Bonn) Discussion Paper Series 2: Banking and Financial Studies No 02/2008 Discussion Papers represent the authors’ personal opinions and do not necessarily reflect the views of the Deutsche Bundesbank or its staff. Editorial Board: Heinz Herrmann Thilo Liebig Karl-Heinz Tödter Deutsche Bundesbank, Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Postfach 10 06 02, 60006 Frankfurt am Main Tel +49 69 9566-1 Telex within Germany 41227, telex from abroad 414431 Please address all orders in writing to: Deutsche Bundesbank, Press and Public Relations Division, at the above address or via fax +49 69 9566-3077 Internet http://www.bundesbank.de Reproduction permitted only if source is stated. ISBN 978-3–86558–389–5 (Printversion) ISBN 978-3–86558–390–1 (Internetversion) Abstract: Despite extensive research interest in the last decade, the banking literature has not reached a consensus on the impact of bank mergers on deposit rates. In particular, results on the dynamics of deposit rates surrounding bank mergers vary substantially across studies. In this paper, we aim for a comprehensive empirical analysis of a bank merger’s impact on deposit rate dynamics. We base the analysis on a unique dataset comprising deposit rates of 624 US banks with a monthly frequency for the time period 1997-2006. These data are matched with individual bank and local market characteristics and the complete list of bank mergers in the US. The data allow us to track the dynamics of bank mergers while controlling for the rigidity of the deposit rates and for a range of merger, bank and local market features. An innovation of our work is the introduction of an econometric approach of estimating the change of the deposit rates given their rigidity. Keywords: Deposit rate dynamics, bank mergers, deposit rate rigidity JEL-Classification: G21, L11 Non Technical Summary Bank mergers affect bank competition by altering the market structure in affected local bank markets and the size and geographical scope of the merging banks. Despite extensive research interest provoked by the widespread bank consolidation in the US, existing studies have not reached a consensus on the impact of bank mergers on deposit rates. In particular, results on the dynamics of deposit rates surrounding bank mergers vary substantially across studies. One potential reason for the deviating results is that researchers have used different datasets. However, results might also be biased because of the inadequate treatment of deposit rate dynamics (in particular, the time series structure of deposit rates has been ignored). Moreover, all existing studies include only a fraction of past mergers in the analysis. In this paper we revisit the topic and present a comprehensive analysis of the impact of bank mergers on deposit rate dynamics. We add to the literature by addressing both the dynamics of deposit rates WORKING PAPER SERIES NO. 518 / SEPTEMBER 2005 TERM STRUCTURE AND THE SLUGGISHNESS OF RETAIL BANK INTEREST RATES IN EURO AREA COUNTRIES by Gabe de Bondt, Benoît Mojon and Natacha Valla In 2005 all ECB publications will feature a motif taken from the €50 banknote. WORKING PAPER SERIES NO. 518 / SEPTEMBER 2005 This paper can be downloaded without charge from http://www.ecb.int or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=781086. TERM STRUCTURE AND THE SLUGGISHNESS OF RETAIL BANK INTEREST RATES IN EURO AREA COUNTRIES 1 by Gabe de Bondt, 2 Benoît Mojon 2 and Natacha Valla 3 1 We thank Jesper Berg, Francesco Drudi, Michael Ehrmann, Leonardo Gambacorta, Jordi Gual, Hans-Joachim Klöckers, Joao Sousa and Oreste Tristani for their comments and Rasmus Pilegaard for data assistance.All views expressed are those of the authors alone and do not necessarily reflect those of the ECB or the Eurosystem. 2 Gabe de Bondt and Benoît Mojon are at the European Central Bank. 3 Contact author: Banque de France, B.P. 140-01, 75049 Paris Cedex 01, France; e-mail: natacha.valla@banque-france.fr © European Central Bank, 2005 Address Kaiserstrasse 29 60311 Frankfurt am Main, Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Reproduction for educational and non- commercial purposes is permitted provided that the source is acknowledged. The views expressed in this paper do not necessarily reflect those of the European Central Bank. The statement of purpose for the ECB Working Paper Series is available from the ECB website, http://www.ecb.int. ISSN 1561-0810 (print) ISSN 1725-2806 (online) 3 ECB Working Paper Series No. 518 September 2005 CONTENTS Abstract 4 Non-technical summary 5 1 Introduction 7 2 Literature review 8 3 Data 11 4 The model 12 4.1 Do bank lending rates depend on deposit rates? 12 4.2 Error-correction model of retail bank pricing 13 5 Results 14 5.1 The baseline estimates 14 5.2 Has the euro had an impact on retail bank pricing? 15 5.3 State-dependant bank pricing and the change in monetary policy regime 17 6 Conclusion 18 Appendix: State dependent pricing 20 References 22 25 European Central Bank working paper series 46 Tables and charts Abstract This paper analyses the pricing of bank loans and deposits in euro area countries. We show that retail bank interest rates adjust not only to changes in short-term interest rates but also to long-term interest rates. This result, which is arguably intuitive for long-term retail bank rates, is also confirmed for bank interest rates on short-term instruments. The transmission of changes in short-term market interest rates along the yield curve is found to be a key factor explaining the sluggishness of retail bank interest rates. We also show that in the cases where we cannot reject that the adjustment of retail rates has changed since the introduction of the euro, this adjustment has become faster. Keywords: retail bank Deposit interest rates, asset risk and bank failure in Croatia Evan Kraft, Advisor to the Governor Croatian National Bank Trg hrvatskih velikana 3 10000 Zagreb Croatia tel: (3851) 4564-858 fax: (3851) 4564-784 email: evan.kraft@hnb.hr Tomislav Galac, Director, Financial Stability Department Croatian National Bank Trg hrvatskih velikana 3 10000 Zagreb Croatia tel: (3851) 4564-842 fax: (3851) 4564-784 email: tomislav.galac@hnb.hr 1 Abstract: During the 1980’s and 1990’s, financial liberalization became an almost universally- accepted policy prescription. Large numbers of countries eased licensing, deregulated interest rates and dismantled systems of directed lending. However, banking system crises, first in the southern cone of Latin America in the early 1980’s and later in the U.S., Scandinavian countries and a large set of emerging market economies, raised questions about the links between financial liberalization and instability. In particular, Hellman, Murdoch and Stiglitz (2000) question the wisdom of complete deregulation of deposit interest rates, arguing that this can facilitate “purchasing market share” to fund “gambling.” The transition countries of Central and Eastern Europe provide an interesting laboratory to test these arguments. Starting in the early 1990’s, these countries rapidly liberalized their banking markets, removing restrictions on entry, asset composition and interest rates. For this reason, the experience of such countries may help confirm whether the U.S. experience of the 1980’s was typical. In this paper, we examine the experience of Croatia, which liberalized its banking regulations in the early 1990’s. After the end of the wars surrounding the break-up of former Yugoslavia, Croatia experienced rapid growth in the number of banks, strong deposit growth and substantial increases in deposit interest rates in the period 1995-98. This buoyant period was punctuated by the failures of numerous medium-sized banks in 1998 and 1999. Our argument is that high deposit interest rates helped fund the expansion of risk- loving banks, and in fact were a fairly reliable signal of increased bank asset risk. We proceed in two steps. First, using panel regression techniques, we show that banks were able to increase deposit growth, and thus fund rapid expansion, by raising interest rates in the pre- crisis period. We also show that the interest-elasticity of deposits completely vanished during the banking crisis. Second, we provide a set of predictive models of bank failures. These models show that deposit interest rates were one of the most significant variables predicting bank failures. High risk banks—the ones that eventually failed—often offered higher deposit interest rates than low risk banks. Having shown that high deposit interest rates were a source of funding for risky banks, and that high deposit interest rates are correlated with eventual failure, we end the paper with a discussion of policy implications. Keywords: interest rate regulation, banking crisis, bank failure models, financial liberalization. 2 1. Introduction During the 1980’s and 1990’s, financial liberalization became an almost universally- accepted policy prescription. Large numbers of countries eased licensing, deregulated interest rates and dismantled systems of directed lending. However, banking system crises, first in the southern cone of Latin America in the early 1980’s CAN THO UNIVERSITY SCHOOL OF EDUCATION ENGLISH EDUCATION DEPARTMENT WœX A STUDY ON THE USE OF GAMES IN TEACHING ENGLISH VOCABULARY TO GRADE 10 STUDENTS AT HIGH SCHOOL B.A Thesis Field of study: Language Teaching and Testing Supervisor: Chung Thị Thanh Hằng Student: Nguyễn Văn Hoàng Anh Class: NN0652 A2 Student code: 7062936 Can Tho, April 2010 TABLE OF CONTENTS TABLE OF CONTENTS i ACKNOWLEDGEMENTS iii TÓM TẮT iv ABSTRACT .v LIST OF TABLES vi Chapter one INTRODUCTION 1 General statement of the problems .1 Statement of the aims, the research questions and the hypotheses General organization and coverage of the study .3 Chapter two REVIEW OF LITERATURE Related literatures .4 1.1 Roles of vocabulary in language learning and teaching 1.2 Effective ways to learn English vocabulary 1.3 Kinds of games which enhance vocabulary learning Related studies 10 Justification of the present study .12 Chapter three .13 RESEARCH METHODOLOGY .13 Research participants 13 Research instruments and materials 13 Research design and procedure .14 Chapter four 16 RESEARCH RESULTS 16 Over view of statistical procedures 16 Description of the findings .16 2.1 Hypothesis 1: Students have a positive attitude towards the use of the language games in the classroom .16 i 2.2 Hypothesis 2: Time-consumption and limitation of vocabulary game sources are the main difficulties of English teachers at this school 17 Other findings 18 Chapter five 19 SUMMARY, DISCUSSION AND SUGGESTION .19 Summary of research problem, method and finding 19 Discussion of the study results 19 2.1 Students’ attitude and perception about the use of games in teaching and learning vocabulary in classroom 19 2.2 Teachers’ difficulties in using games in classroom .20 Suggestions for using games in classroom 21 3.1 Ways of using vocabulary games to save time for teachers 21 3.2 Ways for teachers to get more sources of vocabulary games .22 Limitation of the study .22 Recommendations for further research 23 Conclusion 23 REFERENCES 25 APPENDIX 27 Appendix 27 Appendix 29 Appendix 31 Appendix 34 Appendix 35 ii ACKNOWLEDGEMENTS During the process of carrying out this research, I have received much assistance and contribution from many people to all of whom I would like to acknowledge First and foremost, I would like to express my deep gratitude and appreciation to Ms Chung Thi Thanh Hang, my supervisor, for providing me valuable source of material and insightful comments on my research Were not for her valuable guidance, encouragement and correction, it would not be the acomplishment of my research Second, I wish to express my deep respect and appreciation to the teaching staff of the English Education Department for their instructions at the initial steps in constructing my research Third, I am grateful to Mr Nguyen Tin Trong, my close friend, for his enthusiasm to help me type the research and his useful encouragements during the time of my practicum From the bottom of my heart, I am enormously indebted to my parents who have given me invaluable support and ordor encouragement since I entered Can tho university I also appreciate the on-going support of Ms Ngo Thi Trang Thao for her encouragement and her help me analyze the data with the SPSS program Last, but not least, I would like to thank the English teachers and the students of class 10 A1, 10 A2, and 10 C6 at Phan Van Tri High School (School year of 2009- 2010) Their cooperation no doubt plays an important element in the process of conducting my research iii TÓM TẮT Bài nghiên cứu thực với mục tiêu khảo sát việc sử dụng trò chơi dạy từ vựng cho ... Minh Gia www.luatminhgia.com.vn Decision shall remain unchanged until their maturity dates In case the depositors not withdraw the deposit after their maturity dates, the credit institutions and. .. shall apply deposit interest rates prescribed in this Decision Article The Chief Officers, the Director of the Financial Policy Department and heads of organizations affiliated to the State Bank... Vietnam, directors of the State Bank of central-affiliated provinces and cities; President of the Board of Directors, President of Member Council and General Director of credit institutions, branches