Decision No. 187/QD-NHNN dated January 16, 2008 of the State Bank on the adjustment of required reserve applicable to credit institutions

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.

2. To amend Form 3 in the Decision No. 1130/2005/QD-NHNN dated 1 August 2005 of the Governor of the State Bank on the amendment, supplement of several articles of the Regulation on required reserve applicable to credit institutions issued in conjunction with the Decision No. 581/2003/QD-NHNN dated 9 June 2003 of the Governor of the State Bank like the Form 3 attached to this Decision.

Article 5. This Decision shall be effective for the implementation of the required reserve maintenance period of February 2008 and replace the Decision No. 1141/QD-NHNN dated 28 May 2007 of the State Bank’s Governor. The provisions in the Decision No. 582/2003/QD-NHNN dated 9 June 2003 of the Governor of the State Bank on adjustment of required reserve ratios applicable to credit institutions, which are contrary to this Decision, shall cease their effectiveness.

Article 6. The Director of the Administrative Department, the Director of Monetary Policy Department, Heads of units of the State Bank of Vietnam, General Managers of State Bank branches in provinces, cities, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

FORM 1

Credit institution shall submit to the Operation Department of the State Bank, State Bank’s branches in provinces, cities where its head office is located

Name of Credit institution
Address

REPORT

ON THE AVERAGE BALANCE OF MOBILIZED DEPOSITS WHICH ARE SUBJECT TO REQUIRED RESERVE OF MONTH....YEAR...

Unit: VND million; US$/EURO/JPY/GBP/CHF thousand

................, date...........................

FORM 3

- The State Bank’s branches in provinces, cities shall send to the Banking Operation Department within the first 7 business days of each month

- The Banking Operation Department shall consolidate and report the State Bank’s Governor, at the same time send to the State Bank Inspectorate, the Monetary Policy Department within the first 10 business days of each month

Name of unit:
No…..

REPORT

on the cosolidation of the required reserve performane BY credit institution
Month....year......

Unit: VND million; US$, EURO, JPY, GBP thousand