On May 29, 2018, the State Bank of Vietnam (SBV) issued Decision No.1158/QD-NHNN on the reserve requirement ratios applicable to credit institutions and foreign bank branches.

The key reserve ratios and rules are as follows:

1) People's credit funds and micro finance institutions: the compulsory reserve ratio in respect of all types of VND deposits and foreign currency deposits is zero per cent (0%), and as such, no reporting to the State Bank on the balance of average deposits raised is required.

2) Bank for Agricultural and Rural Development and cooperative banks:

(a) for VND deposits on call and for terms of less than twelve (12) months: 3%,

(b) for VND deposits for terms of twelve (12) months or more: 1%,

(c) for foreign currency deposits of credit institutions overseas: 1%,

(d) for foreign currency deposits on call and for terms of less than twelve (12) months, 7%, and

(e) for foreign currency deposits for terms of twelve (12) months or more: 5%)

of the total deposit balance (for which compulsory reserves must be retained)

3) Other Credit Institutions:

• 3% for demand deposits and time deposits of less than 12 months
• 1% for time deposits of 12 months plus
• 1% for all deposits of foreign Credit Institutions in foreign currencies
• 8% for other demand deposits and time deposits of less than 12 months in foreign currencies, and
• 6% for other time deposits of 12 months plus in foreign currencies.

This Decision is effective as for the reserve maintenance period of June 2018.