The State Bank is drafting a Circular amending and supplementing a number of articles of Circular No. 30/2019/TT-NHNN regulating the implementation of compulsory reserves by credit institutions and foreign bank branches.
Accordingly, the draft Circular supplements Clause 4, Article 3 on credit institutions that do not implement compulsory reserves to be consistent with Clause 2, Article 23 of the Law on Credit Institutions 2024, which stipulates: Policy banks are not required to implement compulsory reserves.
In addition, the draft Circular amends Article 7 on reducing the required reserve ratio as follows:
Firstly, the supporting credit institutions specified in Clause 39, Article 4 of the Law on Credit Institutions (supporting credit institutions) are entitled to a 50% reduction in the compulsory reserve ratio according to the recovery plan for specially controlled credit institutions approved by the State Bank.
Second, the credit institution that is the recipient of the compulsory transfer of a commercial bank under special control as prescribed in the Law on Credit Institutions (the credit institution receiving the transfer) is entitled to a 50% reduction in the required reserve ratio according to the compulsory transfer plan of a commercial bank under special control approved by the State Bank.
Third, the reduction in the required reserve ratio for each credit institution specified in Clauses 1 and 2 above is calculated on the basis of the required reserve ratio specified in Clause 1, Article 6 of this Circular and applies to all types of deposits subject to required reserves.
According to the State Bank, the draft adds a case of reducing the required reserve ratio by 50% for credit institutions that are transferees of specially controlled commercial banks to be consistent with Point p, Clause 1, Article 185 of the Law on Credit Institutions 2024, which stipulates the rights of the transferee: To reduce the required reserve ratio by 50%.
In addition, the draft also amends the responsibilities of the units to be consistent with the additional provisions on the case of reducing the required reserve ratio by 50% for credit institutions receiving transfers in Article 7 above.
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