Vietnam’s Circular No. 30/2019/TT-NHNN: 03 reservable deposits

According to Article 8 of Circular No. 30/2019/TT-NHNN of the State Bank of Vietnam (SBV), reservable deposits include:

- Deposits of organizations (except for other credit institutions established and operating in Vietnam) and deposits of individuals at credit institutions in the forms of demand deposits, term deposits, saving deposits and special deposits.

- Funds earned by credit institutions from the issuance of deposit certificates, promissory notes, treasury bills and bonds.

- Other deposits held by credit institutions in the principle of fully paying principals and interests to depositors as agreed, except margins and deposits of other credit institutions established and operating in Vietnam.

Circular No. 30/2019/TT-NHNN stipulates reserve ratios for credit institutions as follows:

- The SBV’s Governor is accorded authority to decide the reserve ratio for each type of credit institutions and each type of deposits that corresponds to the national monetary policy goals and objectives in each period, except reserve ratios for VND deposits imposed on credit institutions prescribed in Point b of this Clause;

- If a credit institution granting agricultural and rural development loans is supported via the reserve requirement tool, the reserve ratio for VND deposits will be subjected to SBV's specific regulations on use of monetary policy tools for supporting credit institutions granting agricultural and rural development.

Interest rates on required reserves and excess reserves applied to each type of credit institutions and each type of deposits shall be subject to the decision issued by SBV in conformity with national monetary policy goals and objectives in each period.

View other provisions 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