STATE
BANK OF VIETNAM
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
---------
|
No:
20/2010/TT-NHNN
|
Hanoi,
September 29, 2010
|
CIRCULAR
ON
GUIDING THE IMPLEMENTATION OF MEASURES FOR MANAGING MONETARY POLICY INSTRUMENT
TO SUPPORT CREDIT INSTITUTIONS LENDING FOR AGRICULTURAL AND RURAL DEVELOPMENT
- Pursuant to the Law on
State Bank of Vietnam issued in 1997 and the Law on the amendment, supplement
of several articles of the Law on State Bank of Vietnam issued in 2003; the Law
on Credit institutions issued in 1997 and the Law on the amendment, supplement
of several articles of the Law on Credit Institutions issued in 2004;
- Pursuant to the Decree No.96/2008/ND-CP dated 26 August 2008 of the
Government providing for the function, duty, authority and organizational
structure of the State Bank of Vietnam;
- Pursuant to the Decree No.41/2010/ND-CP dated 12 April 2010 of the Government
on credit policy for serving the agricultural, rural development;
The State Bank of Vietnam hereby provides guidance to the implementation of
measures for managing monetary policy instrument to support credit institution
lending for agricultural, rural development as follows:
Article 1. The State Bank
shall provide capital support to the lending for agricultural, rural
development by credit institutions (excluding local People’s credit funds)
through the following monetary policy management instruments:
1. The required reserve rate
applicable to VND deposit shall be lower than the normal required reserve rate
(that is the required reserve rate applicable to State-owned commercial banks,
excluding Vietnam Bank for Agricultural and Rural Development, joint stock
commercial banks, joint venture banks, foreign bank’s branches, 100% foreign
owned banks, finance companies), which shall be applied from the required
reserve maintaining period in October 2010, specifically as follows:
a. For the credit institution
whose ratio of loan outstanding for agricultural, rural development over the
average total loan outstanding at the end of quarters in the consecutive fiscal
year is 70% and higher: The required reserve rate for VND deposits shall be
1/20 (one twentieth) against the normal required reserve rate in proportion
with the term of the deposit.
b. For the credit institution
whose ratio of loan outstanding for agricultural, rural development over the
average total loan outstanding at the end of quarters in the consecutive fiscal
year is from 40% to 70%: The required reserve rate for VND deposits shall be
1/5 (one fifth) against the normal required reserve rate in proportion with the
term of the deposit.
2. To set aside an amount from
the money for annual supply to refinance the credit institutions lending for
agricultural, rural development in conformity with the objectives, measures of
monetary policy management. Refinance loans to the agricultural, rural sectors
shall be entitled to priority of the State Bank in terms of the period and
capital source of loan in comparison with other sectors.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 2.
Responsibilities of the credit institutions and units of the State Bank
1. Responsibilities of the
credit institutions:
a. To observe provisions of
applicable laws and guidance of the State Bank of Vietnam on credit policy for
agricultural, rural development.
b. To make timely and full
report on the lending to agricultural, rural sector in accordance with
provisions of the State Bank. To take responsibility for the accuracy and
legality of the reported data on credit of service to agricultural, rural
development as a basis for the implementation of provisions in Article 1 of
this Circular.
c. To use the supported capital
for the right purpose of lending for agricultural, rural development.
2. Responsibilities of units of
the State Bank:
a. The Credit Department shall
submit the Governor of the State Bank for approval and notify the List of
credit institutions subject to provisions in Paragraph 1 Article 1 of this
Circular to the Banking Operation Department and concerned units of the State
Bank, the State Bank’s branches in provinces, cities under the central
Government’s management, credit institutions for implementation.
b. Other units of the State Bank
shall, upon their assigned function, duty, perform tasks concerning the
monetary policy management as provided for in Article 1 of this Circular.
Article 3. Implementation
organization
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Any provisions contrary to
this Circular shall become expired.
3. Director of Administrative
Department, Director of the Monetary Policy Department and Head of units of the
State Bank, Manager of State Bank’s branches in provinces, cities under the
central Government’s management; Chairman of the Board of Directors and General
Director (Director) of credit institutions shall be responsible for the
implementation of this Circular.
FOR
THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR
Nguyen Dong Tien