Headlines 04/02/2023 13:52 CH

Vietnam’s amendment to regulations on prudential ratios of banks

Duy Văn

On December 31, 2022, the Governor of the State Bank of Vietnam promulgated Circular No. 26/2022/TT-NHNN on amendments to Circular No. 22/2019/TT-NHNN on limits and prudential ratios of banks and foreign bank branches.

According to the Circular, loan-to-deposit ratios are still calculated according to current regulations prescribed in Circular No. 22/2019/TT-NHNN, but there are adjustments to the total deposit.

Specifically, deposits of domestic and foreign organizations (including deposits of other credit institutions and foreign bank branches), excluding the following amounts:

- Escrows and dedicated capital deposits of clients;

- Demand deposits of the State Treasury;

- Time deposits of the State Treasury according to the following roadmap:

+ From January 1, 2020 to December 31, 2023: 50% of the balance of deposits of the State Treasury;

+ From January 1, 2024 to December 31, 2024: 60% of the balance of deposits of the State Treasury;

+ From January 1, 2025 to December 31, 2025: 80% of the balance of deposits of the State Treasury;

+ From January 1, 2026: 100% of the balance of deposits of State Treasury.

(Previously, according to Circular No. 22/2019/TT-NHNN, the excluded amounts include:  

- Deposits of the State Treasury;

- Escrows and dedicated capital deposits of clients.)

See more details in Circular No. 26/2022/TT-NHNN, which comes into force as of December 31, 2022.

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Above are the summary and notification of new documents for customers of THU VIEN PHAP LUAT. For more information, please send an email to info@thuvienphapluat.vn.

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