According to this Circular, reserve requirements for credit institutions are subject to the following regulations:
- The State Bank’s Governor is accorded authority to make his decisions on reserve requirements for credit institutions and deposits of specific kinds that correspond to national monetary policy goals and objectives over periods of time.
(Except reserve requirements for Vietnamese-dong deposits imposed on credit institutions falling into the following situations).
- If credit institutions granting agricultural and rural development loans are supported via the reserve requirement tool, their reserve requirements for Vietnamese-dong deposits will be subject to special regulations laid down by the State Bank.
However, there will be 03 cases in which credit institutions are exempted from reserve requirements as follows:
- 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.
>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE
853