Press release on issuance of Circular No. 17/2022/TT-NHNN
Hanoi, December 23, 2022 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 17/2022/TT-NHNN providing guidance for the environmental risk management in credit granting activities by the credit institutions and the foreign bank branches.
The new Circular comprises of 08 Articles with the following main substances:
(i) Scope of application;
(ii) Subjects of application;
(iii) Explanation of terms and terminology;
(iv) Principles of environmental risk management in credit granting activities;
(v) Information about environmental risk management in credit granting activities;
(vi) Internal regulations on environmental risk management in credit granting activities;
(vii) Enforcement;
(viii) Implementation arrangements.
The issuance of Circular No. 17/2022/TT-NHNN is aimed to implement the SBV’s responsibility as stated at Article 149 of the 2020 Law on Environmental Protection. The new Circular requires the credit institutions and the foreign bank branches to develop their own internal regulations to manage environmental risks in the independent credit granting activities, or to integrate it in the existing internal regulations on credit granting or the internal control regulations of the respective credit institutions, in compliance with the applicable legal regulations on credit granting activities and credit risk management.
This Circular also aims to raise the awareness and enhance the responsibility of the banking industry related to environmental protection, contribute to the implementation of the national green growth objectives. In addition, the Circular is also expected to strengthen the risk governance of the credit institutions against environmental risks of the investment projects belonging to the category that can cause adverse environmental impacts, improve the credit quality, safety and the efficiency of banking operations.
The new Circular will take effect on June 01, 2023.
Translated by LK.