Press release on issuance of Circular No. 16/2021/TT-NHNN
Hanoi, November 10, 2021 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 16/2021/TT-NHNN replacing Circular No. 22/2016/TT-NHNN dated June 30, 2016 regulating the purchase of corporate bonds by credit institutions, foreign bank branches (hereinafter referred to as credit institutions), and Circular No. 15/2018/TT-NHNN dated June 18, 2018 amending and supplementing a number of Articles of Circular No. 22/2016/TT-NHNN dated June 30, 2016.
Circular No. 16/2021/TT-NHNN, which regulates the purchase and sales of corporate bonds by credit institutions, is comprised of 13 Articles. namely: Scope of application; Subjects of application; Explanation of terms; Principles for the purchase and sales of corporate bonds; Corporate bonds eligible for transactions; Internal regulations; Responsibilities of credit institutions when purchasing corporate bonds; Limits of corporate bond purchases; Classification and provisioning for risks, and handling with risks related to the balances of corporate bonds purchased; Accounting for, statistics and keeping records of the purchases and sales of corporate bonds; Transitional provisions; Enforcement; Implementation arrangements.
The Circular will take effect from January 15, 2022.
Translated by LK.