stop-check Banks to classify, report on debts

Circular No. 02/2013/TT-NHNNstatus1 dated January 21, 2013 of the Vietnam State Bank on classification of assets, levels and method of setting up of risk provisions, and use of provisions against credit risks in the banking activity of credit institutions, foreign banks’ branches
Posted: 24/1/2013 10:55:35 AM | Latest updated: 4/8/2021 2:43:03 PM (GMT+7) | LuatVietnam: 3168 | Vietlaw: 82

Under the new circular, the State Bank requires credit institutions and branches of foreign banks themselves to classify debts and off-balance-sheet undertakings on a quarterly basis and report the results to the Credit Information Centre (CIC).

Debts shall be classified into five categories: Standard Debt, Debt Needing Special Attention, Subprime Debt, Doubtful Debt, and Potentially Irrecoverable Debt.

Within three days of receiving the results, the CIC shall summarize a list with the most risky debts classified by credit institutions, making this list available upon the request of credit institutions.

The State Bank has also requested credit institutions to create an internal credit rating system for rating customers as a foundation for evaluating credit worthiness and for creating a risk reserve policy in conformance with the actual circumstances of the credit institution.

The Circular takes effect on June 1, 2013.

Effective notes
  • See more the regulations at Circular No. 12/2013/TT-NHNNstatus1 dated May 27, 2013 of the State Bank of Vietnam and the merged document No. 22/VBHN-NHNN dated June 4, 2014.
  • This Circular shall be expired from October 1st, 2021, replaced by Circular No. 11/2021/TT-NHNN dated July 30th, 2021.

Related documents

Penalty document



Effective Date 1-Jun-2013
ExpiredDate 1-Oct-2021
Published Vietlaw's Newsletter No. 82

follow 11/2021/TT-NHNN - New regulations on classification of debts, setting up of risk provisions at banks

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