Press Release on issuance of Circular No.08/2020/TT-NHNN
Hanoi, August 14, 2020 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 08/2020/TT-NHNN amending and supplementing a number of articles of Circular No.22/2019/TT-NHNN dated November 15, 2019 issued by the SBV Governor stipulating the prudent limits and ratios in the operations of banks and foreign banks’ branches.
The new Circular amends and supplements Paragraph 5 of Article 16 of Circular No. 22/2019/TT-NHNN. Accordingly, banks and foreign banks’ branches are required to comply with the regulations on the maximum ratio of short-term capital resources, which are utilized for providing medium and long term loans, specifically as follows: a) From January 1, 2020 to September 30, 2021: 40%; b) From October 1, 2021 to September 30, 2022: 37%; c) From October 1, 2022 to September 30, 2023: 34%; d) From October 1, 2023: 30%.
The new Circular is composed of 3 Articles.
The new Circular took effect from October 1, 2020.
Translated by Le Hang