Circular No. 09/2014/TT-NHNN on Amending and Supplementing Certain Articles of Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the Governor of the State Bank of Vietnam on the Classification of Assets, Provisions for Risk Reserves, Methods for Establishing Risk Reserve Provisions, and the Use of Reserves to Address Risks in the Operations of Credit Institutions and Branches of Foreign Banks

CIRCULAR

Von amending and supplementing some articles of TCircular No. 02/2013/TT-NHNN dated January 21, 2013

of TGovernor N |||the cooperative N |||of the State Bank of Vietnam on classification of assets, provisioning levels, and methods

for establishing risk provisions and using provisions to address risks in operations

The Governor of the State Bank of Vietnam issues this Circular to amend and supplement certain provisions of Circulars on the issuance of Licenses, network operations, and foreign exchange activities of credit institutions and foreign bank branches

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Pursuant to the Law on the State Bank of Vietnam No.No. 46/2010/QH12 dated November 16June 2024;2004;10;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 days 1June 6, 202010;

Decree No. 156/201Government Decree No. 52/2016/ND-CP dated June 13, 2016 stipulating wages, remuneration, and bonuses for managers in limited liability companies with 100% state capital; 11 the 11 year 2013 of theand project management units managing one construction project in accordance with current laws on project management for construction investment (excluding project management units that are member organizations of enterprises);of the Government stipulating functions, tasks, powers, and organizational structureof the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home AffairsThis Circular takes effect from February 16, 2021, except for the provisions of Clause 2 of this Article.

At the proposal of the Office of the Ministry of Public Security;June 2024;of the Banking Inspection Agency,June 2024;and supervision of banks,

THEpipe The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing Circular No., amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP ,No. of Circular No.No. 02/2013/2013/TT-NHNN dated January 21, 20201stipulating on asset classification, provisioning levels, provisioning methodsthe dossier in accordance with Clause 1 of this Article and submit to the State Bank; for risk provisions and theệửđổ use of provisions to handle risks in operations of credit institutions foreign bank branches (Circular No. 02).

Article 1. Amending and supplementing some articles of Circular No. 02 as follows:

1. Supplement Clause 4 into Article 1 as follows:

"4. The establishment and use of risk provisions for special bonds issued by the Asset Management Company of Credit Institutions of Vietnam to purchase non-performing loans of credit institutions shall be carried out in accordance with the provisions of Circular No. 19/2013/TT-NHNN dated September 6, 2013 of the Governor of the State Bank of Vietnam on the purchase, sale, and handling of non-performing loans of the Asset Management Company of Credit Institutions of Vietnam (Circular No. 19) and any subsequent amendments, supplements, or replacements thereof."

2. Amend and supplement Point h Clause 2 of Article 6 as follows:

"h) There must be regulations on self-assessment of collateral assets, including periodic principles, methods, procedures, and responsibilities of each unit and individual related to the valuation of collateral assets in accordance with the law to ensure that the value of collateral assets is consistent with market value when calculating specific amounts of provisions according to this Circular;"

3. Amend and supplement Clause 9 and Clause 10 of Article 9 as follows:

"9. For loans where lending and credit issuance are implemented based on approval or directives from the Government, Prime Minister, credit institutions, and foreign bank branches shall classify debts, establish and use provisions to address risks according to the decision of the Governor of the State Bank of Vietnam for each specific case.

10. For debts violating laws as specified in Point c(iv) Clause 1 of this Circular, at the time of discovering the violation, credit institutions and foreign bank branches must immediately issue a decision to recover the outstanding debt in violation of the law.

For debts that need to be recovered based on audit conclusions, credit institutions and foreign bank branches must issue a decision to recover the outstanding debt according to the audit conclusion.

For debts violating laws as specified in Point c(iv) Clause 1 of this Circular, debts that need to be recovered based on audit conclusions, credit institutions and foreign bank branches may not restructure repayment terms and during the period they have not yet recovered according to the recovery decision, credit institutions and foreign bank branches shall classify debts and establish risk provisions according to this Circular."

4. Supplement Clause 10a into Article 9 as follows:

"In cases where a debt violates laws as specified in Points c(iv), d(iv), đ(v) Clause 1 of this Circular or a debt that needs to be recovered based on audit conclusions as specified in Points c(v), d(v), đ(vi) Clause 1 of this Circular is classified into different risk groups, credit institutions and foreign bank branches must classify such debt into the highest risk group."

5. Amend and supplement Point c(iv) and Point c(v) Clause 1 of Article 10 as follows:

"(iv) Debts belonging to any of the following situations that have not been recovered within 30 days from the date of the recovery decision:

- Debts violating the provisions of Clauses 1, 3, 4, 5, and 6 of Article 126 of the Law on Credit Institutions;

- Debts violating the provisions of Clauses 1, 2, 3, and 4 of Article 127 of the Law on Credit Institutions;

- Debts violating the provisions of Clauses 1, 2, and 5 of Article 128 of the Law on Credit Institutions;

(v) Debts within the recovery period as per audit conclusions;"

6. Supplement Point c(vii) into Clause 1 of Article 10 as follows:

"(vii) Debts must be classified into Group 3 as stipulated in Clause 11 of Article 9 of this Circular."

7. Amend and supplement Point d(iv) and Point d(v) Clause 1 of Article 10 as follows:

"(iv) Debts specified in Point c(iv) Clause 1 of this Article that have not been recovered within 30 to 60 days from the date of the recovery decision;

(v) Debts that need to be recovered based on audit conclusions but remain unrecovered beyond 60 days from the recovery deadline;"

8. Supplement Point d(vii) into Clause 1 of Article 10 as follows:

"(vii) Debts must be classified into Group 4 as stipulated in Clause 11 of Article 9 of this Circular."

9. Amend and supplement Point đ(v) and Point đ(vi) Clause 1 of Article 10 as follows:

"(v) Debts specified in Point c(iv) Clause 1 of this Article that have not been recovered within more than 60 days from the date of the recovery decision;

(vi) Debts that need to be recovered based on audit conclusions but remain unrecovered beyond 60 days from the recovery deadline;"

10. Supplement Point đ(ix) Clause 1 of Article 10 as follows:

"(ix) Debts must be classified into Group 5 as stipulated in Clause 11 of Article 9 of this Circular."

11. Supplement Clause 3a into Article 10 as follows:

"3a. Restructuring repayment terms and maintaining the same debt classification:

a) Credit institutions and foreign bank branches may consider restructuring repayment terms and maintaining the original loan classification before restructuring if they meet the following conditions:

(i) The debt was not granted in violation of legal regulations;

(ii) The restructuring of repayment terms is consistent with the purpose of the loan project in the credit agreement;

(iii) The customer uses the funds for their intended purpose;

(iv) Restructuring repayment terms and maintaining the original loan classification can only be done when the customer does not have the ability to repay the principal and/or interest within the agreed repayment period or does not have the ability to repay the full principal and/or interest within the agreed repayment period in the credit agreement, and has a new feasible repayment plan consistent with production, business, or service conditions.

(v) When restructuring the debt repayment period and maintaining the same risk classification group, the credit organization or foreign bank branch complies with the State Bank's regulations on limits and safety ratios for credit organizations and foreign bank branches, including the maximum ratio of short-term capital used for medium- and long-term loans in cases where short-term debts are restructured into medium- and long-term debts.

b) Credit organizations and foreign bank branches implementing debt repayment period restructuring while maintaining the same risk classification group in accordance with point a of this clause must ensure compliance with the following requirements:

(i) Credit organizations and foreign bank branches have established internal regulations to control and supervise debt repayment period restructuring and maintaining the same risk classification group, ensuring uniform implementation throughout their system, with internal control mechanisms for debt repayment period restructuring and maintaining the same risk classification group to ensure strict monitoring, safety, prevention, and prohibition of misrepresentation of loan quality through such restructuring.

(ii) Credit organizations and foreign bank branches must monitor the content and reasons for each debt's restructuring of the repayment period and maintaining the same risk classification group. The State Bank requires credit organizations and foreign bank branches to report in detail the content and reasons for each debt's restructuring of the repayment period and maintaining the same risk classification group when necessary.

(iii) Credit organizations and foreign bank branches must proactively decide and be responsible for debt repayment period restructuring and maintaining the same risk classification group in accordance with the provisions of this Circular.

(iv) For a single debt, the implementation of restructuring repayment terms and maintaining the same debt classification as provided in point a of this clause can only be done once;

(v) Credit organizations and foreign bank branches must regularly review and assess the debtor's ability to repay after the debt has been restructured. If the debtor still cannot repay the debt according to the restructured repayment period, credit organizations and foreign bank branches shall not continue to maintain the same risk classification group and shall classify the debt into the corresponding risk classification group in accordance with Article 10 and Article 11 of this Circular.

(vi) Within five (5) days at the beginning of each month or upon request from the State Bank, credit organizations and foreign bank branches must submit reports to the State Bank (Bank Inspection and Supervision Department) on the implementation of debt repayment period restructuring and maintaining the same risk classification group in accordance with the model attached as Appendix No. 01 to this Circular."

12. Amend and supplement point d of Clause 3, Article 12 as follows:

"d) Collateral assets specified in point d of Clause 5 of this Article must be appraised by an appraisal organization authorized by law in the following cases:

(i) Collateral assets valued at VND 50 billion or more for customers who are related parties of credit organizations or foreign bank branches and restricted credit recipients as stipulated in Article 127 of the Law on Credit Institutions;

(ii) Collateral assets valued at VND 200 billion or more, except for cases specified in point d(i) of this clause.

The appraisal results of collateral assets by an appraisal organization authorized by law shall be used by credit organizations or foreign bank branches to determine the value of collateral assets to be deducted when calculating specific provisions and shall be valid for up to twelve (12) months from the date the authorized appraisal organization issues the appraisal document.

In case the authorized appraisal organization is unable to appraise or there is no authorized appraisal organization to appraise the collateral assets specified in points d(i) and d(ii) of this clause, credit organizations or foreign bank branches shall conduct the appraisal in accordance with the internal regulations stipulated in point h of Clause 2, Article 6 of this Circular.

In case the collateral asset does not fully meet the conditions specified in points a, b, c, and d of this clause, the deduction value of the collateral asset shall be considered zero."

13. Add Article 24a as follows:

"Amend and supplement Clause 1 of Article 1 of the Regulations on Loan Classification, Provisioning and Utilization of Specific Provisions for Risk Management in Banking Activities of Credit Organizations issued pursuant to Decision No. 493/2005/QĐ-NHNN dated April 22, 2005 of the Governor of the State Bank as follows:

"1-Credit cooperatives and people's credit funds (hereinafter referred to as credit organizations) shall implement loan classification, provisioning and utilization of specific provisions for risk management in banking activities in accordance with these regulations."."

14. Amend and supplement Article 25 as follows:

"1. This Circular shall take effect from June 1, 2014, except for the provisions of Clause 2 and Clause 3 of this Article.

2. Clause 3a of Article 10 of this Circular shall take effect from March 20, 2014 and cease to be effective from April 1, 2015.

3. Clause 3 of Article 8 and Clause 1 of Article 9 of this Circular shall take effect from January 1, 2015.

4. Directive No. 05/2005/CT-NHNN dated April 26, 2005 of the Governor of the State Bank on the implementation of loan classification and risk provision according to Decision No. 493/2005/QĐ-NHNN dated April 22, 2005 of the Governor of the State Bank shall cease to be effective from June 1, 2014.

5. The Director of the Office, the Director of the Bank Inspection and Supervision Department, the Heads of units under the State Bank, the Governors of the State Bank Branches in provinces and centrally-administered cities, the Chairmen of the Boards of Directors, the Chairmen of the Boards of Members and General Managers (Directors) of credit organizations and foreign bank branches are responsible for organizing the implementation of this Circular./."

Article 2. Effective Date

1. This Circular shall take effect from March 20, 2014.

2. The following documents are hereby abolished:

- Directive No. 04/CT-NHNN dated September 17, 2013 of the Governor of the State Bank on loan classification for restructured debts and bad debt resolution.

- Circular No. 12/2013/TT-NHNN dated May 27, 2013 of the Governor of the State Bank amending certain articles of Circular 02.

- Decision No. 780/QĐ-NHNN dated April 23, 2012 of the Governor of the State Bank on loan classification for adjusted repayment term debts and extended debts.

Article 3. Responsibility for implementation The Director of the Office, the Director of the Inspectorate and Supervision of the State Bank, the Heads of units under the State Bank, the Governors of the State Bank branches in provinces and centrally governed cities, the Chairmen of the Management Boards, the Chairmen of the Member Councils, and the General Directors (Directors) of credit organizations and foreign bank branches shall be responsible for organizing the implementation of this Circular./.

The Director of the Office, the Head of the Inspectorate, the banking supervision agency, the Heads of units under the State Bank, the Governors of the State Bank branches in provinces and centrally-administered cities, the Chairmen of the Management Boards, the Chairmen of the Member Councils, and the General Directors (Directors) of credit organizations and foreign bank branches are responsible for implementing this Circular./.