Decision 421/QD-NHNN in 2020 on interest rates on compulsory reserve deposits and deposits exceeding the compulsory reserve of credit institutions, foreign bank branches at the State Bank of Vietnam

DECISION

PRESCRIBING INTEREST RATES OF REQUIRED RESERVES AND EXCESS RESERVES DEPOSITED BY CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES AT THE STATE BANK OF VIETNAM

THE GOVERNOR OF THE STATE BANK OF VIETNAM

- Pursuant to the Law on State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

- Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010 and the Law No. 17/2017/QH14 dated November 20, 2017 providing amendments to the Law on credit institutions;

- Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

- At the request of the Director of the Monetary Policy Department;

HEREBY DECIDES

Article 1. Interest rates of required reserves and excess reserves deposited by credit institutions and foreign bank branches at the State Bank of Vietnam are as follows:

1. The interest rate of required reserves deposited in Vietnam Dong: 1.0%/year.

2. The interest rate of required reserves deposited in foreign currency: 0%/year.

3. The interest rate of excess reserves deposited in Vietnam Dong: 0%/year.

4. The interest rate of excess reserves deposited in foreign currency: 0.05%/year.

Article 2. This Decision comes into force from March 17, 2020 and supersedes the Decision No. 2497/QD-NHNN dated November 29, 2019 of the Governor of the State Bank of Vietnam prescribing interest rates of required reserves and excess reserves deposited by credit institutions and foreign bank branches at the State Bank of Vietnam.

Article 3. Chief of the Ministry’s Office, the Director of the Monetary Policy Department, Heads of units affiliated to the State Bank of Vietnam, Directors of branches of the State Bank of Vietnam in provinces and central-affiliated cities, Chairpersons of the Boards of Directors, Chairpersons of the Boards of Members and General Directors (Directors) of credit institutions and foreign bank branches shall implement this Decision./.

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