Reserve requirement application of Circular 20/2010/TT-NHNN

The State Bank of Vietnam (SBV) issued Documents No. 457, 458, 459, 460, 461, on December 12, on the application of the reserve requirement ratio for credit institutions with the large proportion of agricultural and rural loans in line with Circular No.20/2010/TT-NHNN of the SBV dated September 29, 2010. The revised regulation is applicable for the reserve requirement term in December, 2010.

Accordingly, the Central People's Credit Fund, the Vietnam Bank for Agriculture and Rural Development, the Vietnam International Joint-stock Commercial Bank, the Kien Long Joint-Stock Commercial Bank and the Mekong Joint-Stock Commercial Bank shall apply the  reserve requirement ratio for VND deposits in December, 2010 as follows:

The reserve requirement ratio applied by the Central People's Credit Fund is 1/20 (One twentieth) of the ordinary reserve requirement ratio corresponding to each period of deposits (As prescribed in Item a of Term 1 of Article 1 of Circular No.20/2010/TT-NHNN of the SBV dated September 29, 2010).

The reserve requirement ratio applied by the Vietnam Bank for Agriculture and Rural Development, the Vietnam International Joint-stock Commercial Bank, the Kien Long Joint-Stock Commercial Bank and the Mekong Joint-Stock Commercial Bank, is 1/5 (One fifth) of the ordinary reserve requirement ratio corresponding to each period of deposits (As prescribed in Item b of Term 1 of Article 1 of Circular No. 20/2010/TT-NHNN of the SBV dated September 29, 2010).

The Central Banking Department is responsible for determining and notifying the reserve requirement ratio for the Central People's Credit Bank, the Vietnam Bank for Agriculture and Rural Development and the Mekong Joint-Stock commercial Bank. The SBV branches in Hanoi and Kien Giang province are responsible for determining and notifying the reserve requirement ratio for the Vietnam International Joint-Stock Commercial Bank and the Kien Long Joint-Stock Commercial Bank.

In addition, the Central People's Credit Fund and the four aforesaid banks are responsible for the application of the reserve requirement ratio as prescribed in these documents and other relevant documents, and sending monthly reports to the SBV on agricultural and rural loans and the proportion of agricultural and rural loans.

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