| STATE BANK OF VIETNAM ------------ | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No. 187/QD-NHNN | Hanoi, 16 January 2008 |
DECISION
ON THE ADJUSTMENT OF REQUIRED RESERVE APPLICABLE TO CREDIT INSTITUTIONS
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State Bank of Vietnam issued in 1997 and the Law on amendment, supplement of several articles of the Law on the State Bank of Vietnam issued in 2003
- Pursuant to the Law on the Credit Institutions issued in 1997 and the Law on amendment, supplement of several articles of the Law on the Credit Institutions issued in 2004;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for the function, assignment, authority and organizational structure of the State Bank of Vietnam;
- Upon the proposal of the Director of the Monetary Policy Department,
DECIDES:
Article 1. Deposits, which are subject to required reserve, are all types of demand deposit and time deposit in accordance with provisions in Article 12 of the Regulation on required reserve issued in conjunction with the Decision No. 581/2003/QD-NHNN dated 9 June 2003 of the State Bank’s Governor.
Article 2. Required reserve ratios applicable to Vietnamese Dong Deposit of credit institutions shall be as follows:
1. Required reserve ratios applicable to demand VND deposit and VND deposit with the term of less than 12 months shall be as follows:
a. For State owned commercial banks (Bank for agriculture and rural development excluded), urban commercial joint stock banks, joint venture banks, foreign banks’ branches, finance companies, the ratio shall be 11% over the total deposit balances subject to required reserve.
b. For the Bank for agriculture and rural development, the ratio shall be 8% over the total deposit balances subject to required reserve.
c. For rural commercial joint stock banks, Central people’s credit Fund, cooperative banks, the ratio shall be 4% over the total deposit balances subject to required reserve.
2. The required reserve ratios applicable to VND deposit with the term of 12 months and more shall be as follows:
a. For State owned commercial banks (Bank for agriculture and rural development excluded), urban commercial joint stock banks, joint venture banks, foreign banks’ branches, finance companies, finance leasing companies, the ratio shall be 5% over the total deposit balances subject to required reserve.
b. For the Bank for agriculture and rural development, rural commercial joint stock banks, Central people’s credit Fund, cooperative banks, the ratio shall be 4% over the total deposit balances subject to required reserve.
Article 3. Required reserve ratios applicable to foreign currency deposit of credit institutions shall be as follows:
1. Required reserve ratios applicable to demand foreign currency deposit and foreign currency deposit with the term of less than 12 months shall be as follows:
a. For State owned commercial banks (Bank for agriculture and rural development excluded), urban commercial joint stock banks, joint venture banks, foreign banks’ branches, finance companies, the ratio shall be 11% over the total deposit balances subject to required reserve.
b. For the Bank for agriculture and rural development, rural commercial joint stock banks, Central people’s credit Fund, cooperative banks, the ratio shall be 10% over the total deposit balances subject to required reserve.
2. The required reserve ratios applicable to foreign currency deposit with the term of 12 months and more shall be as follows:
a. For State owned commercial banks (Bank for agriculture and rural development excluded), urban commercial joint stock banks, joint venture banks, foreign banks’ branches, finance companies, finance leasing companies, the ratio shall be 5% over the total deposit balances subject to required reserve.
b. For the Bank for agriculture and rural development, rural commercial joint stock banks, Central people’s credit Fund, cooperative banks, the ratio shall be 4% over the total deposit balances subject to required reserve.
Article 4. To amend report forms on required reserve as follows:
1. To amend Form 1 in the Regulation on required reserve applicable to credit institutions issued in conjunction with the Decision No. 581/QD-NHNN dated 9 June 2003 of the Governor of the State Bank like the Form 1 attached to this Decision.
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