Decision No. 923/QD-NHNN of July 20, 2004, on the interest rates applicable to the required reserve deposits of credit institutions

DECISION

ON THE INTEREST RATES APPLICABLE TO THE REQUIRED RESERVE DEPOSITS OF 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 function, assignment, authority and organizational structure of the ministries and ministerial-level agencies;
Pursuant to the Decision No. 753/QD-TTg dated 5 July, 2004 of the Prime Minister on the interest payment for the required reserve deposits of credit institutions;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1. The interest rate applicable to the required reserve deposit in VND maintained at the State Bank by credit institutions shall, within the scope of required reserve level as stipulated, be of 1.2% per annum.

Article 2. The interest rate applicable to the required reserve deposit in foreign currency maintained at the State Bank by credit institutions shall, within the scope of required reserve level as stipulated, be of 0% per annum.

Article 3. The deposit exceeding the required reserve level in VND, which is maintained at the State Bank by credit institutions, shall be subject to an interest rate of 0% per annum. An interest rate of 1% per annum shall be applicable to deposits exceeding the required reserve level in foreign currency, which is maintained at the State Bank by credit institutions.

Article 4. To amend Paragraph 1, Article 16 of the Regulation on required reserve applicable to credit institutions issued in conjunction with the Decision No. 581/2003/QD-NHNN dated 9 June, 2003 of the Governor of the State Bank as follows:

"The State Bank shall pay interest on the excess of required reserve in VND and foreign currency to the payment deposit account of credit institutions' Head offices at the interest rate provided for by the Governor of the State Bank from time to time".

Article 5. This Decision shall be effective from 5 July, 2004 and replace Article 6 of the Decision No. 582/2003/QD-NHNN dated 9 July, 2003 of the Governor of the State Bank.

Article 6. Director of Administrative Department, Chief Inspector of the State Bank, Director of the Monetary and Policy Department, Director of the Accounting - Finance Department, Director of the Banking Operation Department, Heads of related units of the State Bank, General Managers of the State Bank's branches in provinces, cities, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.