Hanoi, Vietnam: Amendments to regulations on credit extension management by banks, branches of foreign banks in Vietnam

Amendments to regulations on credit extension management by banks, branches of foreign banks in Vietnam

Amendments to regulations on credit extension management by banks, branches of foreign banks in Vietnam specified in Article 13 of Circular 22/2019/TT-NHNN are as follows:

• Banks and branches of foreign banks manage credit extension activities in accordance with the law and internal regulations on credit extension management as stipulated in Circular 09/2024/TT-NHNN and other relevant laws.

• Credit extension to subjects specified at point e, clause 1, Article 135 of the Law on Credit Institutions is to be carried out as follows:

  • The Board of Directors, Board of Members of the bank, or General Director (Director) of the foreign bank branch approves credit extensions for the person assessing and approving the credit extension with a total outstanding credit amount of 10 billion VND or more, or another lower amount as specified in the internal regulations of the bank or foreign bank branch.

  • Other cases are to be handled according to the internal regulations of the bank or foreign bank branch.

• Banks and branches of foreign banks must report to:

  • The General Meeting of Shareholders, General Meeting of Members on credit extensions to subjects as stipulated in clause 1, Article 135 of the Law on Credit Institutions that arise up to the date of data collection for the General Meeting of Shareholders, General Meeting of Members;

  • Owners, contributing members, managers, and executives when credit extensions to subjects as specified in clause 1, Article 135 of the Law on Credit Institutions arise;

  • The State Bank of Vietnam regarding credit extensions to subjects as specified in clause 1, Article 135 of the Law on Credit Institutions.

More details can be found in Circular 09/2024/TT-NHNN, which comes into force from July 1, 2024.

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