Ratio of Outstanding Loans to Total Mobilized Capital of Vietnam Development Bank

Currently, the Vietnam Development Bank must regularly maintain the loan-to-deposit ratio.

Illustrative image (source: internet)

To be specific, the Vietnam Development Bank calculates the maximum loan-to-deposit ratio in Vietnamese Dong, including Vietnamese Dong and other freely convertible foreign currencies converted into Vietnamese Dong according to the central exchange rate announced by the State Bank for the US Dollar (USD) and the cross-exchange rate of Vietnamese Dong with some other foreign currencies as prescribed by the State Bank regarding the announcement of the central exchange rate of Vietnamese Dong against the US Dollar (USD) and the cross-exchange rate of Vietnamese Dong against some other foreign currencies, determined on the last business day of the month according to the following formula:

Where:

- LDR: is the loan-to-deposit ratio;

- L: is the total outstanding loan balance as specified in Clause 2 of this Article;

- D: is the total mobilized capital as specified in Clause 3 of this Article.

Circular 07/2019/TT-NHNN stipulates that the total outstanding loan balance includes:

- Short-term loans to support exports;- Short-term loans for special programs of the Government of Vietnam;- Medium-term investment credit loans;- Medium-term loans for special programs of the Government of Vietnam;- Long-term investment credit loans;- Long-term loans for special programs of the Government of Vietnam;- Other loans;- Loans pending for resolution.

Total mobilized capital includes:

- Deposits from domestic and foreign organizations;- Loans from Vietnam Social Security, State budget, financial institutions, domestic and foreign credit institutions;- Funds mobilized from the issuance of bonds, promissory notes, certificates of deposit, and other valuable papers.

Vietnam Development Bank must maintain the maximum loan-to-deposit ratio according to the following schedule:

- From the effective date of this Circular to December 31, 2020: 100%;- From January 01, 2021: 95%.

See more related regulations in Circular 07/2019/TT-NHNN which comes into effect on January 01, 2020.

Thu Ba

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