3 TYPES OF CREDIT INSTITUTION NOT SUBJECT TO COMPULSORY RESERVES
On December 27, 2019, the Government of the State Bank of Vietnam promulgates the Circular No. 30/2019/TT-NHNN providing regulations on the fulfillment of compulsory reserves of the credit institutions, foreign bank branches.
Accordingly, there are 03 types of credit institutions that are not subject to compulsory reserves, include: The credit institutions under special supervision; The credit institutions which are about to open; The credit institutions which are approved to dissolve or receive decision to commence bankruptcy procedures or receive decisions of license revoking from competent authorities.
This Circular also prescribes that within 03 initial working of the month, credit institutions are responsible for reporting the average balance of deposits subject to compulsory reserves in the period of determining compulsory reserves as per the Form DTBB001, as a basis for calculating compulsory reserves of period of remaining compulsory reserves, submitting the State Bank’s Transaction Office in writing, directly or by post, or electronically.
The credit institutions of the types applied with ratio of compulsory reserves 0% for all types of deposits subject to compulsory reserves calculation don’t have to submit report as prescribed above in the periods of maintaining compulsory reserves applied with ratio of compulsory reserves of 0%.
This Circular takes effect on March 01, 2020.
