THE CASES THAT SBV ALLOWED TO APPLY THE LOWER RESERVE REQUIREMENT RATIO
In accordance with the Circular No. 14/2018/TT-NHNN of the State Bank of Vietnam dated May 29, 2018 on guiding the implementation of measures for management of monetary policies to support credit institutions in the provision of loans to agriculture and rural development:
To apply the the reserve requirement ratio for support applicable to deposits in Vietnam dong will be lower that the reserve requirement ratio:
For a credit institution with the rate of outstanding loans for agriculture and rural areas representing more than 70% of the total average outstanding loans: The reserve requirement ratio for support shall apply its proposed ratio but must not lower than one-twentieth (1/20) of the reserve requirement ratio applicable to each type of deposits; For a credit institution with the average credit ratio for agriculture and rural areas being between 40% and below 70%: The reserve requirement ratio for support shall be its proposed ratio but must not lower than one-fifth (1/5) of the reserve requirement ratio applicable to each type of deposits set by the State Bank for each type of credit institutions.
If having demand for loans to agricultural and rural development, the credit institution shall propose refinancing loans to the State Bank for consideration under current regulations.
The Circular takes effect on July 13, 2018.
