DECISION

ON THE ADJUSTMENT OF THE REQUIRED RESERVE RATIOS APPLICABLE TO CREDIT INSTITUTIONS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam and the Law on the Credit Institutions dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government providing for the functions, assignments, authorities and organizational structure of the ministries and ministerial-level agencies;
- Upon the proposal of the Director of the Monetary - Policy Department,

DECIDES:

Article 1. The required reserve ratios for VND deposits applicable to credit institutions shall be as follows:

1. The required reserve ratios for demand deposits and deposits with the term of less than 12 months shall be as follows:

a. For the State-owned commercial banks (except for the Agricultural and Rural Development Banks), urban joint-stock commercial banks, joint-venture banks, foreign banks' branches, finance companies: 5% of the total balance of required reserve deposits.

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c. For rural joint-stock commercial banks, the central people's credit Fund, cooperative banks: 2% of the total balance of required reserve deposits.

2. The required reserve ratios for VND deposits with the term of from 12 months to less than 24 months of the State-owned commercial banks, urban joint-stock commercial banks, rural joint-stock commercial banks, cooperative banks, joint-venture banks, foreign bank's branches, the central people's credit Fund, finance companies, finance leasing companies: 2% of the total balance of required reserve deposits.

Article 2. The required reserve ratios for foreign currency deposits applicable to credit institutions shall be as follows:

1. The required reserve ratios for foreign currency demand deposits and foreign currency deposits with the term of less than 12 months applicable to the State-owned commercial banks, urban joint-stock commercial banks, rural joint-stock commercial banks, cooperative banks, foreign banks' branches, joint-venture banks, finance companies, the central people's credit Fund: 8% of the total balance of required reserve deposits in foreign currency.

2. The required reserve ratios for foreign currency deposits with the term of from 12 months to less than 24 months applicable to the State-owned commercial banks, urban joint-stock commercial banks, rural joint-stock commercial banks, cooperative banks, foreign banks' branches, joint-venture banks, the central people's credit Fund, finance companies, finance leasing companies: 2% of the total balance of required reserve deposits in foreign currency.

Article 3. This Decision shall be effective as from the maintenance period of July, 2004 and replace the Decision 831/2003/QD-NHNN dated 30 July, 2003, replace Point c, Paragraph 1 of Article 2, Paragraph 2 Article 2 and Article 3 of the Decision No. 582/2003/QD-NHNN dated 9 June, 2003 of the Governor of the State Bank.

Article 4. The Director of the Administration Department, the Chief Inspector of the State Bank, the Director of Monetary Policy Department, the Director of the Finance and Accounting Department, Heads of units of the State Bank, General Managers of State Bank's branches in provinces, cities, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

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