Decision No.379/QD-NHNN dated February 24, 2009 of the State Bank of Vietnam on the adjustment of required reserve ratio of credit institutions

DECISION

ON THE ADJUSTMENT OF REQUIRED RESERVE RATIO OF CREDIT INSTITUTIONS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam issued in 1997; 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; the Law on amendment, supplement of several articles of the Law on the Credit Institutions issued in 2004;

- 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 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 of Vietnam excluded), Bank for foreign trade of Vietnam, urban commercial joint stock banks, joint venture banks, foreign banks’ branches, 100% foreign owned banks, finance companies, the ratio shall be 3% over the total deposit balances subject to required reserve.

b. In respect of the Bank for agriculture and rural development of Vietnam, rural commercial joint stock banks, Central People’s Credit Fund, cooperative banks, the ratio shall be 1% over the total deposit balances subject to required reserve.

2. Required reserve ratios applicable to VND deposit with the term of 12 months and more shall be as follows:

For State owned commercial banks, Bank for foreign trade of Vietnam, urban commercial joint stock banks, rural commercial joint stock banks, joint venture banks, foreign banks’ branches, cooperative banks, 100% foreign owned banks, finance companies, finance leasing companies, Central People’s Credit Fund, the ratio shall be 1% over the total deposit balances subject to required reserve.

Article 2. 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 of Vietnam excluded), Bank for foreign trade of Vietnam, urban commercial joint stock banks, joint venture banks, foreign banks’ branches, 100% foreign owned banks, finance companies, the ratio shall be 7% over the total foreign currency deposit balances subject to required reserve.

b. In respect of the Bank for agriculture and rural development, rural commercial joint stock banks, Central People’s credit Fund, cooperative banks, the ratio shall be 6% 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 of Vietnam excluded), Bank for foreign trade of Vietnam, urban commercial joint stock banks, joint venture banks, foreign banks’ branches, 100% foreign owned banks, finance companies, finance leasing companies, the ratio shall be 3% over the total deposit balances subject to required reserve.

b. In respect of the Bank for agriculture and rural development of Vietnam, rural commercial joint stock banks, Central People’s credit Fund, cooperative banks, the ratio shall be 2% over the total deposit balances subject to required reserve.

Article 3. This Decision shall be effective for the implementation of the required reserve maintenance period of March 2009 and replace the Decision No. 3158/QD-NHNN dated 19 December 2008 and Article 2 of the Decision No. 2951/QD-NHNN dated 3 December 2008 of the State Bank’s Governor.

Article 4. The Director of the Administrative Department, the Director of Monetary Policy Department, Heads of units of the State Bank, General Managers of State Bank branches in provinces, cities, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.