Announcement on promulgation of Decision No. 1158/QD-NHNN on reserve requirement ratios applicable to credit institutions and foreign bank branches
In order to systematize regulations on reserve requirement ratios applicable to credit institutions and foreign bank branches (hereinafter referred to as CIs) and in consistence with applicable regulations, the State Bank of Vietnam (SBV) issued Decision No.1158/QD-NHNN on May 29, 2018 on requirement ratios applicable to CIs. Specifically:
The reserve requirement ratios applicable to Vietnam Bank for Agriculture and Rural Development (Agribank) and the Co-operative Bank of Vietnam (Co-opBank) corresponding to deposits in VND are adjusted in consistence with Circular No.14/2018/TT-NHNN dated May 29, 2018 guiding the implementation of measures of managing monetary policy instruments for supporting credit institutions providing loans for agriculture and rural development. Accordingly, the reserve requirement ratios applicable to Agribank and Co-opBank corresponding to deposits in VND are as follows: 3% for demand deposits and time deposits of less than 12 months; 1% for time deposits of 12 month plus.
The reserve requirement ratios applicable to People’s credit funds, micro-finance institutions are 0% for different types of deposits; the reserve requirement ratio applicable to Vietnam Bank for Social Policies is in line with the regulations of the Government.
The reserve requirement ratios applicable to other types of credit institutions are unchanged as compared to current levels.
Decision No. 1158/QD-NHNN takes effect from the required reserve maintenance period of June 2018.
Translated by Le Hang