New Text Notification

State Bank of Vietnam: General provision amounts of credit institutions

Thúy Trọng

11:38, 18/08/2021

This is a notable content in the Circular No. 11/2021/TT-NHNN prescribing classification of assets, amounts and methods of setting up risk provisions and use of provisions for control and management of risks arising from operations of credit institutions and foreign bank branches.

According to the Circular No. 11/2021/TT-NHNN of the State Bank of Vietnam, the general provision amount shall account for 0.75% of total outstanding balance of debts from group 1 to group 4, except the followings:

- Deposits made at credit institutions, foreign bank branches in accordance with law and at overseas credit institutions.

- Loans, forwards of securities between credit institutions and foreign bank branches in Vietnam.

- Purchases of promissory notes, treasury bills, certificates of deposit or bonds issued by credit institutions and foreign bank branches onshore. (new supplemented provision)

- Repos of government bonds prescribed in point I of clause 1 of Article 1 of the Circular No. 11/2021/TT-NHNN. (new supplemented provision)

Circular No. 11/2021/TT-NHNN of the State Bank of Vietnam takes effect from October 01, 2021 and replaces the Circular No. 02/2013/TT-NHNN dated January 01 2013 and Circular No. 09/2014/TT-NHNN dated March 18 2014.

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