Vietnam’s additional regulations on credit risk-weighted (CRW)

Vietnam’s additional regulations on credit risk-weighted (CRW) 

Specifically, Clause 12a is added to Clause 12 Article 9 of Circular No. 41/2016/TT-NHNN as follows: 

Regarding claims that are personal loans for agricultural and rural development, according to regulations of the Government of Vietnam on policies on credit for agricultural and rural development, CRW is 50%.

Point b Clause 9, Clause 10, and Point b Clause 11 Article 9 of Circular No. 41/2016/TT-NHNN are also amended. 

Banks and/or foreign bank branches shall classify assets according to Article 9 of Circular No. 41/2016/TT-NHNN and guidelines specified in Appendix 6 prescribed thereof to apply CRW as follows: 

While calculating the consolidated capital adequacy ratio, banks can apply CRW stipulated by host countries for claims of subsidiary, affiliate companies, or overseas bank branches.

As for cash, gold assets and cash equivalents of banks and/or foreign bank branches, CRW is 0%.

As for assets which are claims on the Government of Vietnam, State Bank of Vietnam, State Treasury, People's Committee of centrally affiliated cities or provinces, and policy banks, CRW is 0%. As for claims on the Vietnam Asset Management Company and the Debt and Asset Trading Corporation, CRW is 20%.

As for assets that are claims on international financial institutions, CRW is 0%.

See more details in Circular No. 41/2016/TT-NHNN and Circular No. 22/2023/TT-NHNN.

Circular No. 22/2023/TT-NHNN comes into force as of July 1, 2024. 

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