The Governor of the State Bank of Vietnam (SBV) issued Document No. 5057/NHNN-TTGSNH on July 6 to require credit institutions and foreign branches to make loan classification in line with Circular No.02/2013/TT-NHNN.
Accordingly, from April 12, 2015, credit institutions and foreign bank branches (herein called as credit institutions) are required to classify loans in accordance with Circular No. 02/2013/TT-NHNN (Circular No.02). In order to monitor the implementation of loan classification and NPL resolution of credit institutions in compliance with the SBV Governor’s directions in Document No. 195/TB-NHNN dated July 2, 2015, the SBV required credit institutions to implement following substances:
Credit institutions having the NPL ration of 3% and higher are requires to strictly implement measures of NPL resolution in order to decrease the NPL ratio to below 3% and complete the approved plan on NPL resolution before September 30, 2015.
From the periodical report in June, 2015, credit institutions are required to make loan classification monthly in line with Circular No.02 until the new announcement of the SBV.
Credit institutions are required to direct relevant divisions to urgently review and send monthly report on loan classification to the National Credit Information Center of Vietnam (CIC) on the 10th day of the following month at the latest; and send report on loan classification in accordance with Circular No.02 to the Banking Supervision Agency on the 15th day of the following month at the latest.
Chairmen of the Board of Directors, Chairmen of the Board of Members and General Director of credit institutions are responsible for implementing the above –mentioned requirements.
LH