Vietnam Central Bank Cuts Compulsory Reserves at Banks to 3 per cent From March
The State Bank of Vietnam, the country’s central bank, has just decided to slash compulsory reserve ratio of dong-denominated deposits of 12 months or less at banks to 3 per cent from the current 5 per cent, the SBV said.
The SBV said in a statement that reduction in reserves ratios at banks is part of urgent measures by the government to ward off the economic slowdown.
All the banks and credit institutions will be subject to the decision. For Agribank, the biggest state-owned bank by assets, rural-based commercial banks and state-run credit funds, the reserve ratio will be 1 per cent, down from 2 per cent currently.
As for dong-denominated deposits of more than 12 months, all banks will have reserve ratio at 1 per cent.\
The decision will be effective from March 1.
(SBV)
Vietnamese
