VietnameseDecision No. 191/1999/QD-NHNN1 dated May 31, 1999 of the State Bank on the compulsory reserve rates for credit institutions
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Decision No. 191/1999/QD-NHNN1 dated May 31, 1999 of the State Bank on the compulsory reserve rates for credit institutions
| Issuing body: | State Bank of Vietnam | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 191/1999/QD-NHNN1 | Signer: | Le Duc Thuy |
| Type: | Decision | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 31/05/1999 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Finance - Banking |
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THE STATE BANK ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness ---------- |
No: 191/1999/QD-NHNN1 | Hanoi, May 31, 1999 |
DECISION
ON THE COMPULSORY RESERVE RATES FOR CREDIT INSTITUTIONS
THE STATE BANK GOVERNOR
Pursuant to Law No. 01/1997/QH10 on the State Bank and Law No. 02/1997/QH10 on Credit Institutions of December 12, 1997;
Pursuant to the Government’s Decree No. 15/CP of March 02, 1993 on the tasks, rights and State management responsibility of the ministries and the ministerial-level agencies;
At the proposal of the head of the Monetary Policies Department,
DECIDES
Article 1.- The compulsory reserve rates (including Vietnam dong and foreign currencies) for credit institutions shall be as follows:
1. For demand deposits and under 12-month time deposits of State-run commercial banks, urban joint-stock commercial banks, foreign bank branches, joint-venture banks and financial companies: 6% of the total deposit balance.
2. For demand deposits and under 12-month time deposits of rural joint-stock commercial banks, cooperation banks, the central people’s credit fund and regional people’s credit funds: 4% of the total deposit balance.
3. For time deposits with a term of 12 months or more: 0% of the total deposit balance.
4. For deposits of credit institutions with a deposit balance liable to compulsory reserve being less than 500 million dong, and deposits of grassroots people’s credit funds, credit co-operatives and banks for the poor, the compulsory reserve rate shall be 0% of the total deposit balance.
5. In cases where a credit institution is allowed by the State Bank Governor to mobilize and lend capital in gold, the compulsory reserve rate prescribed for such mobilized capital in gold shall be 0%. In cases where a credit institution is allowed by the Governor of the State Bank to mobilize capital in gold but converts the mobilized capital in gold into cash for lending, such converted capital amount shall be subject to compulsory reserves according to the regulations on compulsory reserves in cash.
Details on deposit types are stipulated in Article 11 of the Regulation on Compulsory Reserves, which is issued together with the State Bank Governor’s Decision No. 51/1999/QD/NHNN1 of February 10, 1999.
Article 2.- The compulsory reserves in Vietnam dong of the credit institutions shall be deposited in demand deposit accounts opened at the State Bank’s Transaction Bureau or the State Bank’s branches in the provinces and cities where such credit institutions are headquartered; the foreign-currency compulsory reserves of the credit institutions shall be deposited in demand deposit accounts opened at State Bank’s Transaction Bureau.
Article 3.- The compulsory reserves deposited by the credit institutions at the State Bank’s accounts within the prescribed compulsory reserve amounts shall enjoy an interest rate of 0%/ month.
Article 4.- The State Bank shall pay interest on the amounts in excess of the compulsory reserves (including Vietnam dong and foreign currencies) deposited by credit institutions at the State Bank’s demand accounts as follows:
1. For the excess amount of the compulsory reserves in Vietnam dong: The State Bank shall pay the interest at the rate equal to that on demand deposit in Vietnam dong deposited by credit institutions at the State Bank, which is stipulated by the State Bank Governor in each period.
2. For the excess amount of the compulsory reserves in foreign currencies: The State Bank shall pay the interest at the rate equal to that on demand deposit in foreign currencies deposited by credit institutions at the State Bank, which is stipulated by the State Bank Governor in each period.
Article 5.- The State Bank shall fine credit institutions for their compulsory reserves deficits in the maintaining period as stipulated in Article 14 of the Regulation on Compulsory Reserves, issued together with the State Bank Governor’s Decision No. 51/1999/QD-NHNN1 of February 10, 1999. The fines shall be specified as follows:
1. For the deficit amount of the compulsory reserves in Vietnam dong during the compulsory reserves maintaining period, a fine equal to 150% of the interest rate on reallocated capital declared by the State Bank in each period shall be imposed, calculating on the deficit amount for the whole compulsory reserves maintaining period.
2. For the deficit amount of the compulsory reserves in foreign currencies during the compulsory reserves maintaining period, a fine equal to 150% of the ceiling interest rate on US dollar loans for economic organizations as stipulated by the State Bank Governor in each period shall be imposed, calculating on the deficit amount for the whole compulsory reserves maintaining period.
Article 6.- This Decision takes effect as from June 01, 1999 and is applied to calculate the compulsory reserves maintaining period for June, 1999.
This Decision replaces the State Bank Governor’s Decision No. 52/QD-NHNN1 of February 10, 1999.
Article 7.- The head of the State Bank Office, the chief inspector of the State Bank, the heads of units under the Vietnam State Bank, the directors of the State Bank’s provincial/municipal branches, the chairmen of the management boards and general directors (directors) of credit institutions shall have to implement this Decision.
THE STATE BANK DEPUTY GOVERNOR Le Duc Thuy |
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