Decision No. 1209/QD-NHNN dated June 01, 2011 of the State Bank of Vietnam on the adjustment of required reserve ratio in foreign currency of credit institutions

Decision

on the adjustment of required reserve ratio in foreign currency of credit institutions

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The Governor of the State bank

Pursuant to the Law on the State Bank of Vietnam issued in 2010;

Pursuant to the Law on the Credit Institutions issued in 2010;

Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

Upon the proposal of the Director of the Monetary Policy Department,

Decides:

Article 1.Required reserve ratios applicable to foreign currency deposit of credit institutions applicable to 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 of Vietnam excluded), joint stock commercial banks, 100% foreign owned banks, joint venture banks, foreign banks’ branches, the ratio shall be 7% over the total deposit balances subject to required reserve.

b. In respect of the Bank for Agriculture and Rural Development of Vietnam, Central People’s Credit Fund, cooperative banks, the ratio shall be 6% over the total deposit balances subject to required reserve.

2. 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 of Vietnam excluded), joint stock commercial banks, 100% foreign owned 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. In respect of the Bank for Agriculture and Rural Development of Vietnam, Central People’s Credit Fund, cooperative banks, the ratio shall be 4% over the total deposit balances subject to required reserve.

Article 2.This Decision shall be effective for the implementation of the required reserve maintenance period of June 2011 and replace the Decision No. 750/QD-NHNN dated 09 April 2011 of the Governor of the State Bank.

Article 3. Director of the Administrative Department, Director of Monetary Policy Department, Heads of units of the State Bank, General Managers of State Bank s branches in provinces, cities under the central Government s management, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.