Increase the required foreign currency reserve ratio by 1%.
On August 26, the Governor of the State Bank issued Decision No. 1925/QD-NHNN on adjusting the foreign currency reserve ratio for credit institutions.
According to this Decision, the required reserve ratio for demand deposits and term deposits of less than 12 months in foreign currency applicable to State-owned commercial banks (excluding the Vietnam Bank for Agriculture and Rural Development), joint stock commercial banks, 100% foreign-owned banks, joint venture banks, and foreign bank branches is 8% of the total balance of deposits subject to required reserves.
For the Bank for Agriculture and Rural Development of Vietnam, the Central People's Credit Fund, and cooperative banks, 7% of the total deposit balance must be kept as a mandatory reserve.
The compulsory reserve ratio for deposits of 12 months or more in foreign currency applied to State-owned commercial banks (excluding the Vietnam Bank for Agriculture and Rural Development), joint-stock commercial banks, 100% foreign-owned banks, joint-venture banks, foreign bank branches, finance companies, and financial leasing companies is 6% of the total deposit balance subject to compulsory reserve.
For the Vietnam Bank for Agriculture and Rural Development, the Central People's Credit Fund, and cooperative banks, 5% of the total deposit balance must be kept in reserve.
This Decision takes effect from the required reserve maintenance period of September 2011 and replaces Decision No. 1209/QD-NHNN dated June 1, 2011 of the Governor of the State Bank.
This is the third time this year that the State Bank has increased the required foreign currency reserve ratio for credit institutions by 1%.
According to VNA
