Hanoi, Vietnam: Regulations on the classification of assets (liabilities) of microfinance institutions

This Circular provides regulations on the classification of assets (hereinafter referred to as liabilities) arising from the following activities of microfinance institutions:

• Lending;

• Entrusted lending;

• Depositing money (excluding demand deposits) at credit institutions, foreign bank branches in accordance with the law.

Regulations on the classification of assets (liabilities) of microfinance institutions in Vietnam

Microfinance institutions carry out the classification of liabilities into 05 groups as follows:

Group 1 (Standard Liabilities) includes:

• On-time liabilities;

• Overdue liabilities under 10 days.

Group 2 (Liabilities needing attention) includes:

• Overdue liabilities from 10 days to under 30 days;

• Restructured liabilities for the first time.

Group 3 (Substandard Liabilities) includes:

• Overdue liabilities from 30 days to under 90 days;

• Restructured liabilities for the first time overdue under 30 days according to the restructured repayment period for the first time;

• Liabilities exempted or reduced in interest due to the customer's inability to fully pay the agreed interest.

Group 4 (Doubtful Liabilities) includes:

• Overdue liabilities from 90 days to under 180 days;

• Restructured liabilities for the first time overdue from 30 days to under 90 days according to the restructured repayment period for the first time;

• Restructured liabilities for the second time.

Group 5 (Liabilities likely giving rise to loss) includes:

• Overdue liabilities from 180 days or more;

• Restructured liabilities for the first time overdue from 90 days or more according to the restructured repayment period for the first time;

• Restructured liabilities for the second time overdue according to the restructured repayment period for the second time;

• Restructured liabilities for the third time or more, whether overdue or not.

Circular 14/2024/TT-NHNN takes effect in Vietnam from July 1, 2024.

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