Each credit institution shall maintain the full required reserve at the State Bank of Vietnam according to 02 rules

According to Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam (SBV), credit institutions shall maintain the required reserves on their checking accounts opened at SBV. Specifically, each credit institution shall maintain the full required reserve at SBV during the reserve maintenance period according to the following rules:

- The average of balances in checking accounts opened by the credit institution at SBV, including checking accounts opened at the Operations Center and SBV's provincial branches, during the reserve maintenance period (hereinafter referred to as “actual reserve”) shall not be less than the required reserve in that period. The actual reserve shall be calculated by adopting the following formula: 

- Total daily balances in checking accounts opened by the credit institution at SBV over a reserve maintenance period may be either lower or higher than the required reserve in that period.

The determination of excess or deficiency in required reserves is specified as follows:

- Excess reserve is the part of the actual reserve in excess of the required reserve in a reserve maintenance period;

- Reserve deficit is the negative difference between the actual reserve and the required reserve in a reserve maintenance period.

The credit institution suffering from deficiency in the required reserve shall incur administrative penalties in accordance with applicable regulations on penalties for administrative violations in the monetary and banking sector.

View full text at Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam, effective from March 01, 2020.

Thu Ba

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