Vietnam: Periodic debt classification for credit cooperatives starting from August 15, 2024

Periodic debt classification for credit cooperatives starting from August 15, 2024

Specifically, according to Article 4 of Circular 36/2024/TT-NHNN of the State Bank of Vietnam, the periodic performance of debt classification by credit institutions as cooperatives shall be carried out as follows:

- At least once a month, within the first 07 (seven) days of the month, credit institutions as cooperatives shall carry out debt classification and off-balance sheet commitments up to the end of the last day of the preceding month, based on the provisions in Clause 6 Article 1, Articles 8, 9, and 10 of Circular 36/2024/TT-NHNN.

In addition to the above-mentioned time of classification, credit institutions as cooperatives are allowed to classify debts and off-balance sheet commitments according to internal regulations.

- Based on the results of inspection, examination, supervision, and related credit information:

+ The State Bank (Bank Inspection and Supervision Agency) shall have the authority to require credit cooperatives to reevaluate and classify specific debts in accordance with the level of risk associated with those debts.

+ The State Bank's provincial and central branch offices shallhave the authority to require the affiliated units of credit cooperatives and people's credit funds to reevaluate and classify specific debts in accordance with the level of risk associated with those debts.

More details can be found in Circular 36/2024/TT-NHNN of the State Bank of Vietnam, effective from August 15, 2024.

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