How to determine the maximum specific deduction rate for security property of credit institutions in Vietnam?

The maximum specific deduction rate for security property of credit institutions in Vietnam is determined as prescribed in Clause 6, Article 12 of Circular 11/2021/TT-NHNN, specifically as follows:

6. Credit institutions, foreign bank branches shall determine the specific deduction rate of each type of collateral or security property according to the principle that the lower the liquidity of the collateral or security property, and the greater the price fluctuation, then the lower the collateral deduction rate. In this principle, the maximum deduction rate of the collateral or security property is calculated as follows:

a) Borrower's deposit balance, certificate of deposit in Vietnam Dong at the lending credit institution, foreign bank branch: 100%;

b) Government bonds, gold bars in accordance with law on gold trading activities; borrower's deposit balance, certificate of deposit in foreign currency at the lending credit institution, foreign bank branch: 95%;

c) Municipal bonds, Government-guaranteed bonds; negotiable instruments, promissory notes, bills, bonds issued by the lending credit institutions; balance of deposits, certificates of deposit, promissory notes, bills issued by other credit institutions, foreign bank branches:

- The time left to maturity of less than 1 year:  95%;

- The time left to maturity of 1 year - 5 years:  85%;

- The time left to maturity of more than 5 year:  80%.

d) Securities issued by other credit institutions and listed on the Stock Exchanges: 70%;

dd) Securities issued by enterprises (except credit institutions) and listed on the Stock Exchanges: 65%;

e) Securities that have not yet been listed on the Stock Exchanges, valuable papers, except those specified at point c of this Clause, issued by other credit institutions that have registered for listing securities on the Stock Exchanges: 50%;

Securities that have not yet been listed on the Stock Exchanges, security instruments, except those specified at point c of this clause, issued by other credit institutions that do not register for listing their securities on the Stock Exchanges: 30%;

g) Securities that have not yet been listed on the Stock Exchanges, security instruments issued by enterprises that register for listing their securities on the Stock Exchanges: 30%;

Securities that have not yet been listed on the Stock Exchanges, security instruments issued by enterprises that do not register for listing their securities on the Stock Exchanges: 10%;

h) Real property: 50%;

i) Others: 30%.

Best Regards!