The State Bank of Vietnam has announced that non-term foreign currency deposits and those with terms of less than 12 months will see compulsory reserves cut from 7 percent to 4 percent.
The policy will be implemented by all state owned banks (except Vietnam Bank for Agriculture and Rural development), joint stock commercial banks, wholly foreign owned banks, joint venture banks and foreign branch banks.
The reserve ratios will be down 3 percent from 6 percent imposed on Vietnam Bank for Agriculture and Rural development, Central People’s Credit Fund and cooperative banks.
Vietnam’s Central Bank issued a statement that mandates compulsory reserves being cut down to 2 percent from 3 percent on foreign currency deposits with terms longer than 12 months. The policy will be adopted by state owned banks (except Vietnam Bank for Agriculture and Rural development), joint stock commercial banks, wholly owned foreign banks, joint venture banks, foreign branch banks and financial organisations.
The reserve ratios will be down 1 percent from 2 percent at Vietnam Bank for Agriculture and Rural development, Central People’s Credit Fund and cooperative banks.
All changes take effect beginning February 1.
