Vietnam: Credit institutions must maintain 2% of their deposit balance at the Bank for Social Policies

According to Circular No. 23/2013/TT-NHNN of the State Bank of Vietnam, every year, state credit institutions are responsible for maintaining a deposit balance at the Bank for Social Policies equal to 2% of the balance of capital mobilized in Vietnamese Dong as of December 31 of the previous year.

Specifically, the balance of mobilized capital in Vietnamese Dong of state credit institutions as of December 31 of the previous year includes: Demand deposits, term deposits, savings deposits, issuance of certificates of deposit, promissory notes, treasury bills, other forms of receiving deposits from individuals and organizations (except credit institutions and foreign bank branches) according to Clause 13 Article 4 of the Law on Credit Institutions of Vietnam; issuance of bonds to mobilize capital from individuals and organizations (except credit institutions and foreign bank branches).

Moreover, Circular No. 23/2013/TT-NHNN also regulates the handling of cases of adding or withdrawing deposit balances of state credit institutions at the Bank for Social Policies as follows:

- In case the deposit balance that must be maintained in the following year is greater than the deposit balance of the previous year, state credit institutions must supplement the deposit balance with the greater difference.

- In case the deposit balance that must be maintained in the following year is smaller than the deposit balance of the previous year, state credit institutions may withdraw deposits equal to the smaller difference or continue to maintain the previous year's deposit balance.

View full text at Circular No. 23/2013/TT-NHNN of the State Bank of Vietnam, effective from January 02, 2014.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE