What are regulations on credit extension regarding banking activities in Vietnam?
What are regulations on credit extension regarding banking activities in Vietnam?
Hello Lawnet. I'm looking for regulations on limits and prudential ratios in banking sector. What are regulations on credit extension regarding banking activities in Vietnam?
Thank you!
Pursuant to Clause 11 Article 3 of the Circular 22/2019/TT-NHNN (takes effect from 01/01/2020) stipulating as follows:
“Credit extension” means an agreement between a credit institution or FBB with another organization or individual in which the latter may use a repayable amount of money in the form of a loan, discounting, finance lease, factoring, purchase of corporate bonds, credit card issuance, bank guarantee, L/C or other forms of credit extension prescribed by the State bank, including credit extension by another juridical person the risk of which is assumed by the credit institution or FBB.
Above are regulations on credit extension regarding banking activities in Vietnam.
Best regards!
