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STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 09/2024/TT-NHNH
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Hanoi, June 28, 2024
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CIRCULAR
AMENDMENTS TO SOME ARTICLES OF CIRCULARS ON PRUDENTIAL RATIOS AND LIMITS ON OPERATIONS AND INTERNAL CONTROL SYSTEMS OF CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES
Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credit Institutions dated January 18, 2024;
Pursuant to the Government's Decree No. 102/2022/ND-CP dated December 12, 2022 on functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the request of the Chief Inspector of the Banking Supervision Agency under SBV;
The Governor of the State Bank of Vietnam promulgates Circular on amendments to some Articles of Circulars on prudential ratios and limits on operations and internal control systems of credit institutions and foreign bank branches.
Article 1. Amendments to, replacement and annulment of some Articles of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam on prudential ratios and limits on operations of banks and foreign bank branches
1. Point dd Clause 1 Article 1 shall be amended as follows:
"dd) Ratios of purchased, held and invested government bonds and government-backed bonds;”
2. Clause 3 Article 1 shall be amended as follows:
“3. During the special control period, banks are not required to comply with regulations in Articles 136, 137, 138 and Clause 3 Article 144 of the Law on Credit Institutions and relevant regulations in this Circular.”
3. Clause 4 Article 1 shall be amended as follows:
“4. Banks that provide assistance and receive mandatory transfer are not subject to limited ratios of purchased, held and invested government bonds and government-backed bonds according to regulations in point d clause 1 Article 138 of the Law on Credit Institutions and relevant regulations in this Circular.”
4. Clause 11 Article 3 shall be amended as follows:
11. “Credit extension” means an agreement between a credit institution or a foreign bank branch and another organization or individual in which the latter may use an amount of money or a commitment that allows the use of an amount of money on the repayment principle in the form of a loan, discounting, finance lease, factoring, investment in corporate bonds, credit card issuance, bank guarantee, letter of credit (L/C) or other forms of credit extension prescribed by the State Bank, including credit extension by another juridical person the risk of which is incurred by the credit institution or foreign bank branch according to regulations of law.”
5. Clause 12 Article 3 shall be amended as follows:
“12. “Total balance of credit extension” includes total balance of loans, discounting, re-discounting, finance lease, factoring, total investment in corporate bonds (except for special bonds and bonds directly issued to debt-selling credit institutions in order for them to buy bad debts of Vietnam Asset Management Company (VAMC) at the market prices), and other credit extensions defined by the State Bank (consisting of balance of credit extension from funding sources of other juridical persons the risks of which are incurred by the credit institution or foreign bank branch); undisbursed loan limits, credit card limits, bank guarantee balance, balance derived from the issuance, confirmation, negotiation of payment and commitment of reimbursement of LCs and trusted credits extended by other credit institutions or foreign bank branches.”
6. Clause 13 Article 3 shall be amended as follows:
“13. “Investment in corporate bonds” means an act of purchasing or holding corporate bonds or entrusting the purchase or hold of corporate bonds to other credit institutions and foreign bank branches. Corporate bonds held do not include those accepted as collateral, discounted or rediscounted."
7. Clause 1 Article 4 shall be amended as follows:
"1. Each bank or foreign bank branch shall issue their own rules on credit extension and management of credit extensions according to regulations in this Circular and relevant regulations of law. Such rules shall include at least the following contents:
a) Criteria for identification of a client, a client and their related person(s) defined in Clause 24 Article 4 of the Law on Credit Institutions; credit policies applicable to a client, a client and their related person(s); regulations on principles of decentralization and delegation of powers to decide or approve credit extension, and debt rescheduling for a client, a client and their related person(s);
b) Regulations on spread or diversification of risks arising from credit extension; methods for monitoring, managing, approving and deciding credit extension to a client, or a client and their related person(s) in case the credit extended is worth at least 1% of the equity of the bank or the foreign bank branch. These regulations shall be made in a public and transparent manner, especially those on appraisal, credit extension, debt rescheduling, prevention of conflicts over interests between the appraiser, the credit extension decision maker and the client who is related to these persons;
c) Rules and criteria for assessment and determination of levels of risks of credit extension to prioritized or restricted clients and sectors, which serve as a basis for formulation and development of annual business plans and strategies;
d) Regulations on consideration for approval of credit extension and debt rescheduling (including debt deferment and rescheduling) must be transparent, free of conflict of interest, and must not conceal information about credit quality. In this pre-approval process, the maker of the decision on debt rescheduling must be different from the maker of the decision to extend such credit, unless the credit extension is approved by the Board of Directors, the Board of Members, General Director/Director, the parent bank (in case of the foreign bank branch). In case the consideration prior to approval of credit extension and debt rescheduling is carried out according to the council-based mechanism, the chairperson of the Debt Rescheduling Review Council shall be different from the chairperson of the Credit Extension Review Council and at least two thirds of the members of the Debt Rescheduling Review Council must be different from members of the Credit Extension Review Council;
dd) Regulations on management of risks incurred from extension of credit for investment and trade in shares, corporate bonds; real estate business; implementation of PPP projects;
e) Regulations on extension of credit that are applicable to Directors (Deputy Directors) of branches, affiliated units and holders of equivalent positions of banks or foreign bank branches according to the rules specified in Points a, b, c, d and dd of this Clause. Equivalent positions shall be determined according to internal rules of banks or foreign bank branches.”
8. Article 10 shall be amended as follows:
“Article 10. Credit extension restrictions and limits
1. A bank or foreign bank branch shall determine its credit extension restrictions and limits mentioned in Article 135 and Article 136 of the Law on Credit Institutions on the basis of its equity specified in Clause 2 of this Article at the end of the last working day.
2. Equity is determined as follows
a) In case the bank or the foreign bank branch applies a minimum capital adequacy ratio according to this Circular, the bank shall apply its standalone equity and the foreign bank branch shall apply its equity according to regulations in Article 9 of this Circular.
b) In case the bank or the foreign bank branch applies a minimum capital adequacy ratio according to the Circular No. 41/2016/TT-NHNN, the bank, the foreign bank branch shall apply its equity according to regulations in the Circular No. 41/2016/TT-NHNN.”
9. Point e Clause 2 Article 11 shall be amended as follows:
“e) The bonds are not listed at the securities market;”
10. Article 13 shall be amended as follows:
“Article 13. Credit extension management
"1. Each bank or foreign bank branch shall manage credit extension according to regulations of law and its internal rules on credit extension and management of credit extensions under this Circular and relevant laws.
2. The credit shall be extended to the person specified in point dd Clause 1 Article 135 of the Law on Credit Institutions as follows:
a) The Board of Directors, the Board of Members of the bank, Director General (Director) of the foreign bank branch shall consider approving credit extensions of the appraiser whose total credit extension balance at such bank or foreign bank branch is 10 billion VND or higher (or a lower limit specified by its regulations).
b) Internal rules of the bank or the foreign bank branch shall apply to other cases.
3. The bank or the foreign bank branch shall report to:
a) the General Meeting of Shareholders or the General Meeting of Members on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions by the time of collection of data needed for organization of the General Meeting of Shareholders or the General Meeting of Members;
b) the owner, capital contributors, managers, executives on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions;
c) SBV on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions.”
11. Article 15a shall be added after Article 15 as follows:
“Article 15a. Banks and foreign bank branches at risk of becoming insolvent and considered insolvent
1. A bank or foreign bank branch is at risk of becoming insolvent when it lacks 20% or more of highly liquid assets at the time of calculation of the solvency ratio, and thus it has failed to maintain one of the solvency ratios as prescribed in this Circular for a period of 30 consecutive days.
2. A bank or foreign bank branch is considered insolvent when it is unable to meet its debt obligations within 01 months as they become due.
3. The bank or foreign bank branch that is at risk of becoming insolvency or has become insolvent must promptly submit reports to the State Bank on its actual status, causes and remedial measures that have been or will be adopted, and suggested solutions (if any).”
12. Point i Clause 3 Article 16 shall be amended as follows:
“i) Share premiums, undistributed profit (according to the balance sheet at the time of calculation of the maximum ratio of short-term capital for provision of medium-term and long-term loans);”
13. Clause 4 Article 17 shall be amended as follows:
“4. Total purchases, holdings of and investments in government bonds and government-backed bonds for determination of the maximum ratio mentioned in Clause 1 of this Article are the buying prices of government bonds and government-backed bonds under the ownership of the bank or the foreign bank branch and entrusted purchases, holdings of and investments in government bonds and government-backed bonds according to regulations of law, excluding:
a) Purchases of or investments in Government bonds and government-backed bonds from trust funds the risks of which are not taken by the bank or the foreign bank branch according to regulations of law;
b) Government bonds and government-backed bonds accepted as collateral, discounted or rediscounted by the bank or the foreign bank branch.”
14. The content of determination method in Section 6 Part A.I Appendix 1 shall be amended as follows:
“Use the amount of “Undistributed profit” on the balance sheet at the time of calculation of standalone minimum prudential capital ratio. If the bank is permitted to delay making provision for losses, its undistributed profit must subtract the positive difference between provisions for losses to be made under regulations of law on classification of assets, amounts set aside for these provisions and methods of making and using these provisions applicable to credit institutions and foreign bank branches, and the amounts of provisions already made.”
15. The content of determination method in Section 6 Part B Appendix 1 shall be amended as follows:
“Use the amount of “Undistributed profit” on the balance sheet at the time of calculation of minimum prudential capital ratio. If the foreign bank branch is permitted to delay making provision for losses, its undistributed profit must subtract the positive difference between provisions for losses to be made under regulations of law on classification of assets, amounts set aside for these provisions and methods of making and using these provisions applicable to credit institutions and foreign bank branches, and the amounts of provisions already made.”
16. Clauses 4, 9, 14, 15 Article 3 and Article 18 shall be annulled.
17. The phrase “Điều 126 Luật Các tổ chức tín dụng (đã được sửa đổi bổ sung)” (Article 126 of the Law on Credit Institutions (amended)) shall be replaced by the phrase “Điều 134 Luật Các tổ chức tín dụng” (Article 134 of the Law on Credit Institutions) in points c and d Clause 2 Article 11, points d and dd Clause 2 Article 12.
18. The phrase “Điều 127 Luật Các tổ chức tín dụng (đã được sửa đổi bổ sung)” (Article 127 of the Law on Credit Institutions (amended)) shall be replaced by the phrase “Điều 135 Luật Các tổ chức tín dụng” (Article 135 of the Law on Credit Institutions) in point dd Clause 2 Article 11, point e Clause 2 Article 12.
19. The phrase “mua, đầu tư” (purchase, investment) shall be replaced by the phrase “mua, nắm giữ, đầu tư” (purchase, hold, investment) in the title of Section 6, the title of Article 17, Clauses 1 and 5 of Article 17.
20. The Vietnamese word "cổ phiếu" is replaced with "cổ phần", both mean "share" in English in Article 19.
Article 2. Amendments to, replacement and annulment of some Articles of Circular No. 23/2020/TT-NHNN dated December 31, 2020 of the Governor of the State Bank of Vietnam on prudential ratios and limits on operations of non-bank credit institutions
1. Point dd Clause 1 Article 1 shall be added as follows:
"dd) Ratios of purchased, held and invested government bonds and government-backed bonds;”
2. Clause 3 Article 1 shall be amended as follows:
“3. During the special control period, non-bank credit institutions are not required to comply with regulations in Articles 136, 137, 138 and Clause 3 Article 144 of the Law on Credit Institutions and relevant regulations in this Circular.”
3. Clause 4 Article 1 shall be amended as follows:
“4. Non-bank credit institutions that provide assistance and receive mandatory transfer are not subject to limited ratios of purchased, held and invested government bonds and government-backed bonds according to regulations in point d clause 1 Article 138 of the Law on Credit Institutions and relevant regulations in this Circular.”
4. Clause 1 Article 2 shall be amended as follows:
“1. Non-bank credit institutions;”
5. Clause 12 Article 3 shall be amended as follows:
“12. Investment in corporate bonds means an act of purchasing, holding corporate bonds (excluding corporate bonds accepted as collateral, discounted or rediscounted).”
6. Clause 1 Article 4 shall be amended as follows:
"1. Each non-bank credit institution shall issue its own rules on credit extension and management of credit extensions according to regulations in this Circular and relevant regulations of law. Such rules shall include at least the following contents:
a) Criteria for identification of a client, a client and their related person(s) defined in Clause 24 Article 4 of the Law on Credit Institutions; credit policies applicable to a client, a client and their related person(s); regulations on principles of decentralization and delegation of powers to decide or approve credit extension, and debt rescheduling for a client, a client and their related person(s);
b) Regulations on spread or diversification of risks arising from credit extension; methods for monitoring, managing, approving and deciding credit extension to a client, or a client and their related person(s) in case the credit extended is worth at least 1% of the equity of the non-bank credit institution. These regulations shall be made in a public and transparent manner, especially those on appraisal, credit extension, debt rescheduling, and prevention of conflicts over interests between the appraiser, the credit extension decision maker and the client who is related to these persons;
c) Rules and criteria for assessment and determination of levels of risks of credit extension to prioritized or restricted clients and sectors, which serve as a basis for formulation and development of annual business plans and strategies;
d) Regulations on consideration for approval of credit extension and debt rescheduling (including debt deferment and rescheduling) must be transparent, free of conflict of interest, and must not conceal information about credit quality. In this pre-approval process, the maker of the decision on debt rescheduling must be different from the maker of the decision to extend such credit, unless the credit extension is approved by the Board of Directors, the Board of Members. In case the consideration prior to approval of credit extension and debt rescheduling is carried out according to the council-based mechanism, at least two thirds of the members of the Debt Rescheduling Review Council must be different from members of the Credit Extension Review Council;
dd) Regulations on management of risks incurred from extension of credit for investment and trade in shares, corporate bonds; real estate business; implementation of PPP projects;
e) Regulations on extension of credit that are applicable to Directors (Deputy Directors) of branches, public service providers and holders of equivalent positions of non-bank credit institutions according to the rules specified in Points a, b, c, d and dd of this Clause. Equivalent positions shall be determined according to internal rules of non-bank credit institutions.”
7. Article 10 shall be amended as follows:
“Article 10. Credit extension restrictions and limits
A non-bank credit institution shall determine its credit extension restrictions and limits mentioned in Article 135 and Article 136 of the Law on Credit Institutions on the basis of its standalone equity specified in Article 9 of this Circular at the end of the last working day.
8. Point e Clause 2 Article 11 shall be amended as follows:
“e) The bonds are not listed at the securities market;”
9. Article 13 shall be amended as follows:
“Article 13. Credit extension management
"1. Each non-bank credit institution shall manage credit extension according to regulations of law and its internal rules on credit extension and management of credit extensions under this Circular and relevant laws.
2. The credit shall be extended to the person specified in point dd Clause 1 Article 135 of the Law on Credit Institutions as follows:
a) The Board of Directors, the Board of Members of the non-bank credit institution shall consider approving credit extensions of the appraiser whose total credit extension balance at such non-bank credit institution is 05 billion VND or higher (or a lower limit specified by its regulations).
b) Internal rules of the non-bank credit institution shall apply to other cases.
3. A non-bank credit institution must report to:
a) the General Meeting of Shareholders or the Board of Members on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions by the time of collection of data needed for organization of the General Meeting of Shareholders or the meeting of the Board of Members;
b) the owner, capital contributors, managers, executives on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions;
c) SBV on credit extended to the entities specified in Clause 1 Article 135 of the Law on Credit Institutions.”
10. Article 15a shall be added after Article 15 as follows:
“Article 15a. Non-bank credit institutions at risk of becoming insolvent and considered insolvent
1. A non-bank credit institution is at risk of becoming insolvent when it lacks 20% or more of highly liquid assets at the time of calculation of the solvency ratio, and thus it has failed to maintain one of the solvency ratios as prescribed in this Circular for a period of 30 consecutive days.
2. A non-bank credit institution is considered insolvent when it is unable to meet its debt obligations within 01 months as they become due.
3. The non-bank credit institution that is at risk of becoming insolvency or has become insolvent must promptly submit reports to the State Bank on its actual status, causes and remedial measures that have been or will be adopted, and suggested solutions (if any).”
11. Point g Clause 3 Article 16 shall be amended as follows:
“g) Share premiums, undistributed profit (according to the balance sheet at the time of calculation of the maximum ratio of short-term capital for provision of medium-term and long-term loans);”
12. Clause 4 Article 17 shall be amended as follows:
“4. Total purchases of and investments in government bonds and government-backed bonds for determination of the maximum ratio mentioned in Clause 1 of this Article are the buying prices of government bonds and government-backed bonds under the ownership of the non-bank credit institution and entrusted purchases of and investments in government bonds and government-backed bonds according to regulations of law, excluding:
a) Purchases of or investments in government bonds and government-backed bonds from trust funds the risks of which are not taken by the non-bank credit institution according to regulations of law;
b) Government bonds and government-backed bonds accepted as collateral, discounted or rediscounted by the non-bank credit institution.”
13. The content of determination method in Section 6 Part I Appendix 1 shall be amended as follows:
“Use the amount of “Undistributed profit” on the balance sheet at the time of calculation of standalone minimum prudential capital ratio. If the non-bank credit institution is permitted to delay making provision for losses, its undistributed profit must subtract the positive difference between provisions for losses to be made under regulations of law on classification of assets, amounts set aside for these provisions and methods of making and using these provisions applicable to credit institutions and foreign bank branches, and the amounts of provisions already made.”
14. Clauses 8, 13, 14, 18 Article 3 and Article 18 shall be annulled.
15. The phrase “công ty tài chính” (financial company) shall be replaced by the phrase “Tổ chức tín dụng phi ngân hàng” (non-bank credit institution) in Clauses 16 and 17 Article 3, point c Clause 2 Article 9, Article 11 and Article 12.
16. The phrase “Điều 126 Luật Các tổ chức tín dụng (đã được sửa đổi bổ sung)” (Article 126 of the Law on Credit Institutions (amended)) shall be replaced by the phrase “Điều 134 Luật Các tổ chức tín dụng” (Article 134 of the Law on Credit Institutions) in points c and d Clause 2 Article 11, points d and dd Clause 2 Article 12.
17. The phrase “Điều 127 Luật Các tổ chức tín dụng (đã được sửa đổi bổ sung)” (Article 127 of the Law on Credit Institutions (amended)) shall be replaced by the phrase “Điều 135 Luật Các tổ chức tín dụng” (Article 135 of the Law on Credit Institutions) in point dd Clause 2 Article 11, point e Clause 2 Article 12.
18. The phrase “mua, đầu tư” (purchase, investment) shall be replaced by the phrase “mua, nắm giữ, đầu tư” (purchase, hold, investment) in the title of Section 6, the title of Article 17, Clauses 1 and 5 of Article 17.
Article 3. Amendments to some Articles of Circular No. 13/2018/TT-NHNN dated May 18, 2018 of the Governor of the State Bank of Vietnam on internal control systems of commercial banks and foreign bank branches
Article 1 shall be amended as follows:
“Article 1. Scope
1. This Circular provides for internal control systems of commercial banks and foreign bank branches.
2. Commercial banks placed under special control are not required to comply with regulations in Chapter V of this Circular.”
Article 4. Responsibilities for implementation
The Chief of the Office, Chief Inspector of the Banking Supervision Agency under SBV, Heads of units affiliated to the State Bank of Vietnam, banks, non-bank credit institutions and foreign bank branches shall be responsible for organizing the implementation of this Circular.
Article 5. Implementation clauses
1. This Circular comes into force from July 01, 2024.
2. Transition clauses applicable to Circular No. 22/2019/TT-NHNN: If a bank or foreign bank branch exceeds the credit extension limit specified in Article 136 of the Law on Credit Institutions due to inclusion of deposits on L/C operations performed before the effective date of this Circular in the total credit extension balance, it will not be considered a violation against credit extension limit. The bank or foreign bank branch may only extend credit to a client, a client and their related person(s) having the above-mentioned extended credit when regulations in Article 136 of the Law on Credit Institutions and Clause 12 Article 3 of the Circular No. 22/2019/TT-NHNN amended by Clause 5 Article 1 of this Circular are satisfied./.
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PP. GOVERNOR
DEPUTY GOVERNOR
Doan Thai Son
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Tìm kiếm
Thông tư 09/2024/TT-NHNN sửa đổi các Thông tư quy định các giới hạn, tỷ lệ bảo đảm an toàn trong hoạt động, hệ thống kiểm soát nội bộ của tổ chức tín dụng, chi nhánh ngân hàng nước ngoài do Thống đốc Ngân hàng Nhà nước Việt Nam ban hành (Bản Pdf)
Thông tư 09/2024/TT-NHNN sửa đổi các Thông tư quy định các giới hạn, tỷ lệ bảo đảm an toàn trong hoạt động, hệ thống kiểm soát nội bộ của tổ chức tín dụng, chi nhánh ngân hàng nước ngoài do Thống đốc Ngân hàng Nhà nước Việt Nam ban hành (Bản Word)