Vietnam: 05 specific requirements on credit extension appraisal

Doan Trinh

09:40, 01/06/2018

The recently issued Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam details contents on risk management, control and internal audit and other issues under internal control systems of banks.

According to Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam, the commercial bank/foreign bank's branch carry out credit extension appraisal, which must at least have the following contents:

- Identify the customer’s affiliated person, the total balance of credit extended to the customer and his/her affiliate;

- Base on the customer’s credit rating (if available), also including ratings from other credit institutions and foreign banks’ branches;

- Assess the profile’s adequacy, legal status and recallability of collateral in the case of credit extensions with collateral;

- Appraise the ability to fulfill obligations and commitments of the guarantor in the case of credit extension with guarantee from a third party.

View detailed provisions on risk management at Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2019.

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