STATE BANK OF VIETNAM
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No: 20/2010/TT-NHNN
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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Hanoi, September 29, 2010
 
 
CIRCULAR
ON GUIDING THE IMPLEMENTATION OF MEASURES FOR MANAGING MONETARY POLICY INSTRUMENT TO SUPPORT CREDIT INSTITUTIONS LENDING FOR AGRICULTURAL AND RURAL DEVELOPMENT
 
STATE BANK OF VIETNAM
 
Pursuant to the Law on State Bank of Vietnam issued in 1997 and the Law on the amendment, supplement of several articles of the Law on State Bank of Vietnam issued in 2003; the Law on Credit institutions issued in 1997 and the Law on the amendment, supplement of several articles of the Law on Credit Institutions issued in 2004;
Pursuant to the Decree No.96/2008/ND-CP dated 26 August 2008 of the Government providing for the function, duty, authority and organizational structure of the State Bank of Vietnam;
Pursuant to the Decree No.41/2010/ND-CP dated 12 April 2010 of the Government on credit policy for serving the agricultural, rural development;
The State Bank of Vietnam hereby provides guidance to the implementation of measures for managing monetary policy instrument to support credit institution lending for agricultural, rural development as follows:
 
Article 1. The State Bank shall provide capital support to the lending for agricultural, rural development by credit institutions (excluding local People’s credit funds) through the following monetary policy management instruments:
1. The required reserve rate applicable to VND deposit shall be lower than the normal required reserve rate (that is the required reserve rate applicable to State-owned commercial banks, excluding Vietnam Bank for Agricultural and Rural Development, joint stock commercial banks, joint venture banks, foreign bank’s branches, 100% foreign owned banks, finance companies), which shall be applied from the required reserve maintaining period in October 2010, specifically as follows:
a. For the credit institution whose ratio of loan outstanding for agricultural, rural development over the average total loan outstanding at the end of quarters in the consecutive fiscal year is 70% and higher: The required reserve rate for VND deposits shall be 1/20 (one twentieth) against the normal required reserve rate in proportion with the term of the deposit.

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