Ratio of outstanding loans to total capital used for lending of Vietnam Development Bank

Duong Chau Thanh

15:42, 05/07/2022

Circular 07/2022/TT-NHNN dated 30/6/2022 amending Circular 07/2019/TT-NHNN stipulates the limits and ratios to ensure safety in operations of Vietnam Development Bank.

According to the Circular, the Vietnam Development Bank calculates the ratio of outstanding loans to total capital used for lending in Vietnam Dong, including Vietnam Dong and other freely convertible foreign currencies converted into Vietnam Dong according to:

The central exchange rate announced by the State Bank of Vietnam for USD and the cross rate of VND for some other foreign currencies according to the regulations of the State Bank of Vietnam on the announcement of the central exchange rate of Vietnam dong against the USD, the exchange rate cross-calculation of the Vietnamese dong against a number of other foreign currencies, determined on the last working day of the month.

The formula for calculating the ratio of outstanding loans to total capital used for lending is:

LDR = (L/D) x 100%

In there:

- LDR: is the ratio of outstanding loans to total capital used for lending;

- L: is the total outstanding loan;

- D: is the total capital used for lending, including mobilized capital as prescribed in Clause 3, Article 8 of Circular 07/2019/TT-NHNN and equity as prescribed in Clause 4, Article 8 of Circular No. 07/2019/TT-NHNN (for current regulations, it is the total mobilized capital).

Circular 07/2022/TT-NHNN takes effect from August 15, 2022.

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