Decision on Maintaining the Cash Ratio of Commercial Banks
关于商业银行库存现金比例保持的决定
ຂໍ້ຕົກລົງ ວ່າດ້ວຍການຮັກສາອັດຕາສ່ວນເງິນສົດຄ້າງຄັງຂອງທະນາຄານທຸລະກິດ
Summary
This decision, promulgated by the Governor of the Bank of the Lao PDR, requires commercial banks to maintain a cash reserve ratio of not less than 2% of total deposits at the end of each business day to ensure customer withdrawal needs and smooth settlement of the economic system.
Articles
Article 1
Purpose. This Decision stipulates the maintenance of the cash reserve ratio for commercial banks to ensure that banks hold sufficient cash to meet customers’ daily cash withdrawal needs and to ensure liquidity for settlements within the economic system.
Article 2
Definition of Terms. The terms used in this Decision have the following meanings: 1. Bank refers to commercial banks or branches of foreign commercial banks established within the territory of the Lao People's Democratic Republic; 2. Cash refers to banknotes and coins; 3. Cash in vault refers to cash held in the bank's treasury.
Article 3
Cash Reserve Ratio Requirement. Each bank shall maintain a cash reserve ratio of not less than 2% of total deposits (excluding deposits from other commercial banks and financial institutions) at the close of each business day. Banks must proactively assess customers' daily cash requirements and must ensure the ability to meet such cash requirements in accordance with the provisions of this Decision.
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