SBV To Cut the Required Reserve Ratio?

Event: State Bank of Vietnam (SBV) plans to reduce the required reserve ratio (RRR) for some major commercial banks, according to a report by Vietnam Net

SBV reportedly plans to adjust the RRR for banks that have large deposits such as Vietcombank (VCB VN), BIDV Bank (BID VN), and Vietinbank (CTG VN).

In addition, some troubled banks will reportedly be exempt from any RRR. These include credit institutions that are under special control, have not yet opened, and are undergoing asset liquidation, dissolution, termination of operations, or revocation of operating licenses. Such banks include Dong A Bank, CB Bank, GGGP Bank, and Ocean Bank, as listed by Vietnam Net.

Banks undergoing restructuring will reportedly see RRRs reduced by 50%. Such banks could include Sacombank (STB VN, VND12,950, BUY, Target Price: VND14,049), BID, VCB, CTG, and probably HDBank (HDB) after the PGBank acquisition.

For the complete report, please access here: Vietnam Banks — SBV RRR cut

Analyst: Tanh Tran, tanh.tran@yuanta.com.vn