Press release on issuance of Circular No. 25/2021/TT-NHNN
Hanoi, December 31, 2021 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 25/2021/TT-NHNN amending and supplementing a number of Articles of Circular No. 01/2015/TT-NHNN dated January 6, 2015 stipulating the trading and provision of interest rate derivatives by the commercial banks and the foreign bank branches (hereinafter referred to as the credit institutions).
The new Circular is composed of four (04) Articles, which amend and supplement a number of Articles of Circular No. 01/2015/TT-NHNN, with the following main substances:
- Supplementing the subjects that are eligible for providing interest rate derivatives to include foreign investors which are institutions owning the Government’s bonds issued in VND in the domestic market.
- Supplementing a number of principles that the credit institutions are required to comply with when trading and providing interest rate derivatives.
- Supplementing regulations on the trading and provision of interest rate derivatives through electronic means.
- Amending the regulations on the limitations applied to the trading and provision of interest rate derivatives in order to ensure consistency with the current SBV's regulations.
- Abolishing the regulation on risk provisioning.
- Amending and supplementing the substances on the requirements for reporting to the SBV, to request the credit institutions to report on their trading and provision of interest rate derivatives in line with the SBV’s statistics reporting regime.
The Circular will take effect from February 14, 2022.
Translated by Le Hang