Vietnam to lower compulsory reserve ratios at banks

20 February, 2019 12:00 AM printer

HANOI: The State Bank of Vietnam, the country's central bank, is planning to halve reserve requirement ratios for credit institutions for the first time since 2011.

The central bank will halve the compulsory ratio for credit institutions that take part in its plans to support the restructuring of ailing credit institutions, local daily newspaper Vietnam News reported on Monday, reports Xinhua.

Beneficiaries of the policy include such big commercial banks as Vietcombank, VietinBank and BIDV which have helped the revival of CB Bank, Ocean Bank and GP Bank, respectively.

Currently, credit institutions are asked to maintain reserve at 3 percent of the total deposit in Vietnamese dong for below 12-month term, and at 1 percent for 12-month-plus term.