Updated  
February, 04 2012 09:45:33

Reserve rules eased for five banks

HA NOI — The State Bank of Viet Nam granted permission on Thursday to five credit institutions to maintain compulsory reserves for Vietnamese dong deposits at below regulated levels for a five-month period beginning February 1.

The Mekong Development Commercial Bank, Mekong Delta Housing Bank, Agribank, LienViet Post Bank and the Central People's Credit Fund will be allowed to maintain compulsory reserves 20 per cent below the levels required pursuant to Circular No 20/2010 TT-NHNN issued by the State Bank in September 2010.

The central bank said that it had eased the requirements for these institutions because they fulfilled a significant public policy role, lending heavily to agricultural producers and for rural development projects.

Under Circular No 20, each credit institution would be required to ensure that at least 40 per cent of its loans be made for agriculture and rural development in order to enjoy the lower compulsory reserves requirement.

The designated credit institutions would now be required to submit monthly reports on lending made for agriculture and rural development purposes, the State Bank said. It also ordered its provincial branches to set compulsory reserve levels for these credit institutions.

Currently, commercial banks and other credit institutions are required to maintain compulsory reserves of 3 per cent against deposits with a maturity of under 12 months, and 1 per cent against term deposits of 12 months or more. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Authorities step in to save old trees 1    Authorities step in to save old trees

The Ha Noi People's Committee has asked Ha Noi Urban Railway Management Unit to try to avoid chopping down many old trees to make way for a future metro line.

Young travellers rescue bus accident victims Young travellers rescue bus accident victims

A group of 16 young Vietnamese motorbikers were first on the scene at last Monday's tragic bus accident on its way from the resort town of Sa Pa, which killed 13 of the 50 passengers on a sleeper bus.

Capital's new urban areas still without safe tap water Capital's new urban areas still without safe tap water

People living in apartment buildings of the capital's new urban areas are expressing concern over poor-quality tap water.

Minister acts on highway peril Minister acts on highway peril

The Ministry of Transport has urged Lao Cai People's Committee to co-ordinate the completion of the highway linking Noi Bai airport with Lao Cai and the resort town of Sa Pa.

VN film triumphs at Venice festival VN film triumphs at Venice festival

A film by Vietnamese female director Nguyen Hoang Diep beat seven other foreign debut features to win the Best Film prize at the 2014 Venice International Film Festival's International Critics' Week.