blue-check New regulations on classification of debts, setting up of risk provisions at banks

Circular No. 11/2021/TT-NHNN dated July 30th, 2021 of the State Bank on prescribing the classification of assets, rates and methods of setting up risk provisions and use of provisions for control and management of risks arising from operations of credit institutions and foreign bank branches
Posted: 4/8/2021 12:49:01 PM | Latest updated: 31/8/2021 2:25:39 PM (GMT+7) | LuatVietnam: 5269 | Vietlaw: 527

This Circular provides for new regulations on classification of credit debts and setting up of risk provisions with regard to banks, foreign bank branches.

According to Article 12 of this Circular, provisioning rates specific to debt groups are not changed, which are 0%, 5%, 20%, 50%, 100% corresponding to Group 1 to Group 5.

However, the new regulations at Article 8 of this Circular requires banks to self-classify loans and set up risk provisions at least once a month instead of once a quarter under the earlier regulations.

This Circular comes into force as of October 1st, 2021.

To replace Circular No. 02/2013/TT-NHNNstatus1 dated January 21st, 2013 and Circular No. 09/2014/TT-NHNNstatus1 dated March 18th, 2014.

Related documents
blue-check 1398/QĐ-NHNN
Penalty document
Effective Date 1-Oct-2021
ExpiredDate Unknown
Published Vietlaw's Newsletter No. 527
Files attachment
enflag pdficon TT11_30072021NHNN[E].pdf