Circular No. 19/2010/TT-NHNN dated September 27, 2010 Stipulating prudential ratios in operations of Credit Institutions
The Governor of the State Bank of Vietnam issued Circular No. 13/2010/TT-NHNN on May 20, 2010 to stipulate regulations on prudent ratios in operations of credit institutions. Circular 13/2010/TT-NHNN is based on the application of regional and international standards and practices, mainly Basel I and the orientation and direction of the Government for state management of the banking sector, with the aim of gradually improving risk management capability and financial potential, and developing a safe and sound system of credit institutions in Vietnam in the process of international economic integration.
To ensure the objectives of the Government on macro-economic management and safe operations of the credit institutions in Vietnam and with the approval of the Prime Minister as stated in Official Letter No. 6799/VPCP-KTTH of the Government Office dated September 24, 2010 on revising Circular No. 13/2010/TT-NHNN, The State Bank of Vietnam issued Circular No. 19/2010/TT-NHNN on September 27, 2010 with certain main changes as follows:
- Article 18 is reworded as “Ratio of granted credit from mobilized capital” or “The ratio of credit provision out of mobilization”;
- Item 2 of Article 18 is removed the component “guarantee” in the total credit supply;
- Item 3.3 of Article 18 is supplemented: The State Bank of Vietnam allows banks to calculate 25% of demand deposits of economic entities (excluding credit institutions) as mobilized capital, meaning this capital can be used to make loans; and
- Item 3.4 of Article 18 is amended: The 3-month plus loans of other credit institutions (except for loans of other domestic credit institutions to finance short balances for liquidity ratios as stipulated in Item 1 of Article 14) will also be added into mobilized capital for lending.
Circular No. 19/2010/TT-NHNN takes effect on October 1, 2010
For more details, please download the entire Circular No. 13/2010/TT-NHNN
Circular No 13.2010.NHNN Stipulating prudential ratios in operations of Credit Institutions.rar
TT 13.2010.NHNN quy dinh ve cac ty te bao dam an toan trong hoat dong tin dung.rar
TT 19.2010.NHHH sua doi bo sung TT 13.2010.NHHH Vietnamese.rar
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