New regulations on obliged reserve

Since January 28, 2016, the State Bank of Viet Nam (SBV) will apply new regulations on obliged reserve rates for credit institutions.

The SBV recently issued Circular 23/2015-TT-NHNN which amends and supplements some articles of Decision 581/QD-NHNN, dated June 9, 2003 on the issuance of the regulation on reserve requirements of credit institutions.

The fresh circular adds foreign credit institution and bank branches which were established and operate in accordance with the Law on credit institutions to compulsory reserve.

Accordingly, the SBV is in charge of deciding compulsory reserve on deposit interest rates, compulsory-reserve surpluses on deposit interest rates for each types of credit organizations and deposits in different periods.

Credit institutions will have to inform compulsory reserves, payment deposit accounts, and compulsory-reserve surpluses on deposit accounts to the SBV Transaction Centre.

The SBV Governor is capable of cutting obliged reserve rates up to zero percent as the lowest for credit institutions which are put under special control.

The SBV Government is also in charge of reducing reserve rates for credit institutions which are being restructured./.

(Source:VGP)