Circular No. 07/2022/TT-NHNN amending and supplementing certain Articles of Circular No. 07/2019/TT-NHNN dated July 3, 2019, issued by the Governor of the State Bank of Vietnam, regulating limits and safety ratios in the operations of the Vietnam Development Bank.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 07/2019/TT-NHNN dated July 3, 2019 issued by the Governor of the State Bank of Vietnam

regarding limits and ratios to ensure safety in the operations of the Vietnam Development Bank

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated November 20, 2017;

Pursuant to Decree No. 32/2017/NĐ-CP dated March 31, 2017 of the Government on state investment credit;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to Decision No. 108/2006/QĐ-TTg dated May 19, 2006 of the Prime Minister on the establishment of the Vietnam Development Bank;

On the basis of Decree No. 16/2017/NĐ-CP dated February 17, 2017 of the Government on functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

limits and ratios to ensure safety in the operations of the Vietnam Development Bank

Pursuant to Decree No. 46/2021/NĐ-CP dated March 31, 2021 of the Government on financial management systems and performance evaluation for the Vietnam Development Bank;

Article 1. Amending and supplementing certain Articles of Circular No. 07/2019/TT-NHNN

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing some articles of Circular No. 07/2019/TT-NHNN dated 03 the 7 Article 2. The receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations shall be carried out in accordance with Decree No. 20/2008/NĐ-CP dated February 14, 2008 of the Government on the receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations (amended and supplemented by Decree No. 48/2013/NĐ-CP dated May 14, 2013 on amending and supplementing certain articles of decrees related to administrative procedure control and Decree No. 92/2017/NĐ-CP dated August 7, 2017 on amending and supplementing certain articles of decrees related to administrative procedure control).9 of the Governor of the State Bank of Vietnam on 1. Amending and supplementing Point c Clause 1 Article 1 as follows:.

"c) The ratio of outstanding loans to total capital available for lending."

"3. The Vietnam Development Bank must maintain a minimum liquidity reserve ratio of 0.6%."

Article 8. Ratio of outstanding loans to total capital available for lending

2. Amending and supplementing Clause 3 of Article 7 as follows:

1. The Vietnam Development Bank shall calculate the ratio of outstanding loans to total capital available for lending in Vietnamese dong, including Vietnamese dong and other freely convertible foreign currencies converted into Vietnamese dong at the central exchange rate announced by the State Bank of Vietnam for the US dollar (USD) and the cross-rate of Vietnamese dong against other foreign currencies according to the regulations of the State Bank of Vietnam on announcing the central exchange rate of Vietnamese dong against the US dollar (USD) and the cross-rate of Vietnamese dong against other foreign currencies, determined on the last working day of the month, using the following formula:

3. Amending and supplementing Article 8 as follows:

"LDR =

x 100%

(tonnes CO

- D: is the total capital available for lending, including capital mobilized as stipulated in Clause 3 of this Article and the bank's own capital as stipulated in Clause 4 of this Article.

2. Total outstanding loans include:

a) Short-term export support loans;

b) Short-term loans under special government programs;

c) Medium-term investment credit loans;

d) Medium-term loans under special government programs;

đ) Long-term investment credit loans;

e) Long-term loans under special government programs;

g) Compulsory guarantee loans;

h) Other loan balances (excluding entrusted loan balances from domestic and foreign organizations and individuals that do not bear risk);

i) Loan balances awaiting resolution.

3. Capital mobilized for lending is capital mobilized in accordance with the Government's financial management system and performance evaluation regulations for the Vietnam Development Bank.

4. Own capital used for lending is the own capital of the Vietnam Development Bank in accordance with the Government's financial management system and performance evaluation regulations for the Vietnam Development Bank, except for the following items:

a) Remaining value of fixed assets (determined by the original cost of fixed assets minus accumulated depreciation) and unfinished construction costs at actual levels but not exceeding 25% of the paid-in capital and additional paid-in capital reserve fund of the Vietnam Development Bank;

b) Actual paid-in capital used to contribute to the paid-in capital of the Vietnam Infrastructure Development and Financial Investment Corporation;

c) Financial reserve fund.

5. The Vietnam Development Bank must maintain a maximum ratio of outstanding loans to total capital available for lending of 95%."

The Director of the Office, the Director of Banking Inspection and Supervision, the Heads of units under the State Bank of Vietnam, and the Vietnam Development Bank are responsible for organizing the implementation of this Circular.

Article 2. Implementation

This Circular takes effect from August 15, 2022./.

Article 3. Implementation Provisions

This Circular takes effect from August 15, 2022./.