Vietnam: Credit institutions not bound by reserve requirements

Currently, required reserve is the minimum amount of money that a credit institution must keep on deposit at SBV, and is determined according to Article 5 of Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam (SBV), maintained according to Article 9 hereof and elaborated in the Appendix enclosed herewith.

Credit institutions not bound by reserve requirements are specified in Article 3 of Circular No. 30/2019/TT-NHNN as follows:

- Credit institutions placed under special control: A credit institution is not required to maintain the reserve requirement for the period commencing from the month following the month when it is placed under the special control according to the decision made by SBV to the end of the month when the special control is lifted by SBV.

- Credit institutions that have not yet started their business: The credit institution is not required to maintain the reserve requirement until the end of the month in which it is inaugurated. In this case, the credit institution shall notify SBV (Operations Center) in writing of its date of inauguration within 3 working days from that inauguration date.

- Credit institutions that are given an approval for dissolution or issued with a decision to institute bankruptcy proceedings or decision on revocation of business license by a competent authority: The credit institution is not required to maintain the reserve requirement from the month following the month when it obtains the approval for dissolution or when the decision to institute bankruptcy proceedings or the decision on revocation of business license comes into force. In this case, the credit institution shall send the decision to institute bankruptcy proceedings to SBV (Operations Center) within 3 working days from the day on which it receives this decision.

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

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE