On May 29, 2018, the State Bank of Vietnam (SBV) issued Decision No.1158/QD-NHNN on the reserve requirement ratios applicable to credit institutions and foreign bank branches (hereinafter referred to as CIs) as follows:
People’s credit funds, micro-finance institutions: reserve requirement ratio in VND and foreign currency is 0%;
Vietnam Bank for Social Policies: reserve requirement ratio is in line with the regulations of the Government;
For CIs stipulated in Paragraphs 1 & 2 of Article 1 of this Decision, which are allowed to apply reserve requirement ratio of 0% for all types of deposits, they are not required to send reports to the SBV on the average mobilized deposit balances that are reserved in compliance with the regulations on reserve requirements applicable to CIs.
Vietnam Bank for Agriculture and Rural Development (Agribank) and the Co-operative Bank of Vietnam (Co-opBank) shall apply the reserve requirement ratios corresponding to different types of deposits as follows: 3% for demand deposits and time deposits of less than 12 months in VND; 1% for time deposits of 12 month plus in VND; 1% for all deposits of foreign CIs in foreign currencies; 7% for other demand deposits and time deposits of less than 12 months in foreign currencies; and 5% for other time deposits of 12 months plus in foreign currencies;
Other CIs (excluding those stipulated in Paragraphs 1 & 2 of Article 1 of this Decision) shall apply the reserve requirement ratios corresponding to different types of deposits as follows: 3% for demand deposits and time deposits of less than 12 months; 1% for time deposits of 12 months plus; 1% for all deposits of foreign CIs in foreign currencies; 8% for other demand deposits and time deposits of less than 12 months in foreign currencies; and 6% for other time deposits of 12 months plus in foreign currencies.
This Decision takes effect from the required reserve maintenance period of June 2018, and shall replace Decision No.379/QD-NHNN dated February 24, 2009, Decision No.1925/QD-NHNN dated August 26, 2011, and Decision No.1972/QD-NHNN dated August 31, 2011.
Le Hang