Vietnam: Items of medium and long-term fund

According to Circular No. 16/2018/TT-NHNN of the State Bank of Vietnam, medium and long-term fund comprises the excess amount of the followings of which the maturity period is more than 01 (one) year:

- Personal deposits;

- Deposits made by foreign and domestic entities, except all types of the State Treasury’s deposits;

- Borrowings obtained from domestic and foreign financial institutions (exclusive of borrowings obtained from other credit institutions or foreign bank branches in Vietnam); 

- Borrowings obtained from the entrusted investment fund of the Government with which risks associated shall be incurred by credit institutions/ foreign bank branches;

- Borrowings obtained from the central credit institution/ foreign bank branch in case credit institutions/ foreign bank branches engage in on-lending of funds derived from financing or investment entrustments from which risks associated shall be incurred by such credit institutions/ foreign bank branches;

- Funds raised from the issuance of promissory notes, treasury bills, certificates of deposit and bonds;

- Charter capital, allocated fund, reserve fund for charter capital complementation, investment fund for professional development, and the remaining amount of financial reserve fund from which the original value of purchases of or investments in fixed assets, or equity participations or share acquisitions have been taken away in accordance with laws and regulations; 

- Share premiums and undistributed profits remaining after purchase of treasury stocks;

- Borrowings obtained from other credit institutions or foreign bank branches in Vietnam with respect to non-bank credit institutions;

- Deposits of people's credit funds with respect to cooperative banks.

View details at Circular No. 16/2018/TT-NHNN of the State Bank of Vietnam, effective from July 31, 2018.

-Thao Uyen-

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