Circular No. 08/2020/TT-NHNN amending and supplementing certain articles of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam on limits and ratios for ensuring safety in the operations of banks and foreign bank branches

CIRCULAR

Amending and supplementing certain provisions of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam
15 November 2019 of the Governor of the State Bank of Vietnam
stipulating limits and ratios to ensure safety in banking operations,
foreign bank branches

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

Pursuant to the Law on Credit Organizations dated June 16, 2010;

Pursuant to the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

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

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 certain provisions of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam stipulating limits and ratios to ensure safety in banking operations, branches of foreign banks.

Article 1. Amending and supplementing certain provisions of Circular No. 22/2019/TT-NHNN dated November 15, 2019 of the Governor of the State Bank of Vietnam stipulating limits and ratios to ensure safety in banking operations, branches of foreign banks

Clause 5, Article 16 shall be amended and supplemented as follows:

"5. Banks and branches of foreign banks must comply with the maximum ratio of short-term capital used for medium- and long-term loans according to the following schedule:

a) From January 1, 2020 to September 30, 2021: 40%;

b) From October 1, 2021 to September 30, 2022: 37%;

c) From October 1, 2022 to September 30, 2023: 34%;

d) From October 1, 2023: 30%."

Article 2. Responsibility for Implementation

The Director of the Office, the Inspector General of Banking Supervision, Heads of Units under the State Bank of Vietnam, Governors of the State Bank of Vietnam Branches in provinces and centrally governed cities, banks, and branches of foreign banks are responsible for implementing this Circular.

Article 3. Effectiveness

This Circular takes effect from October 1, 2020./.