Limit for purchase of corporate bonds by credit institutions in Vietnam

08:40, 05/07/2016

This is a notable content specified in Circular No. 22/2016/TT-NHNN of the State Bank of Vietnam on purchase of corporate bonds by credit institutions, branches of foreign banks.

According to Circular No. 22/2016/TT-NHNN of the State Bank of Vietnam, limit for purchase of corporate bonds by credit institutions, branches of foreign banks is as follows:

- The total amount used to buy corporate bonds shall be charged to the total credit amount extended to a single customer, for a single customer and related person on prudential limits and ratios of credit institutions.

- The credit institutions shall stipulate in details the limits for purchase of corporate bonds: purchase of bonds issued by an enterprise; purchase of bonds issued by an enterprise and a related enterprise; purchase of secured corporate bonds and/or unsecured corporate bonds; purchase of corporate bonds for sale, for investment and for holding to maturity.

- A foreign bank's branch shall not be authorized to buy convertible bonds.

View more details at Circular No. 22/2016/TT-NHNN of the State Bank of Vietnam, effective from August 15, 2016.

- Thanh Lam -

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