Headlines 03/01/2020 08:35 SA

3 cases where credit institutions are exempted from reserve requirements

Nguyễn Ân

State Bank has recently promulgated the Circular No. 30/2019/TT-NHNN regulating implementation of reserve requirements imposed on credit institutions and foreign bank branches.

Pursuant to this Circular, credit institutions falling into the following situations will not be subject to reserve requirements:

- With regard to credit institutions going into special administration, the period of their exemption from being subject to reserve requirements starts from the month when they are put under the State Bank’s special administration and ends in the month when such special administration is lifted;

- Credit institutions that have not commenced their business are exempted from reserve requirements till end of the month when they are inaugurated;

- Credit institutions receive consent to business dissolution or decisions on initiation of bankruptcy proceedings or decisions on revocation of business licenses issued by competent authorities:

The period of exemption from reserve requirement starts from the month following the month when credit institutions receive consent to their business dissolution or decisions on initiation of bankruptcy proceedings or decisions on revocation of their business licenses in force.

Circular No. 30/2019/TT-NHNN is entering into force on March 1, 2020.

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