Circular No. 22/2011/TT-NHNN Amending and Supplementing Certain Articles of Circular No. 13/2010/TT-NHNN dated May 20, 2010, issued by the Governor of the State Bank of Vietnam, on the ratios ensuring safety in the operations of Credit Institutions

CIRCULAR

Amending and supplementing certain Articles of Circular No. 13/2010/TT-NHNN dated May 20, 2010 of the Governor of the State Bank of Vietnam on the ratios ensuring safety in the operations of credit institutions concerning the ratios ensuring safety in the operations of credit institutions

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Implementing Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on key measures to focus on curbing inflation, stabilizing macroeconomic conditions, and ensuring social welfare;

The State Bank of Vietnam (hereinafter referred to as the State Bank) amends and supplements certain Articles of Circular No. 13/2010/TT-NHNN dated May 20, 2010 of the Governor of the State Bank on the ratios ensuring safety in the operations of credit institutions (hereinafter referred to as Circular No. 13), which has been amended and supplemented by Circular No. 19/2010/TT-NHNN dated September 27, 2010 on amending and supplementing certain Articles of Circular No. 13 (hereinafter referred to as Circular No. 19) as follows:

Article 1. Amending and supplementing certain Articles of Circular No. 13 and Circular No. 19

1. Repealing Point đ Clause 2 Article 1 of Circular No. 13 (which has been amended and supplemented at Clause 1 Article 1 of Circular No. 19).

2. Amending Point 5.2 Clause 5 Article 5 of Circular No. 13 as follows:

"5.2. Assets "Có" with a risk weight of 20% include:
a) Claims against other credit institutions within the country and abroad, including claims denominated in foreign currency;
b) Claims denominated in Vietnamese Dong against provincial People's Committees; claims denominated in foreign currency against the Government of Vietnam, the State Bank of Vietnam;
c) Claims denominated in Vietnamese Dong guaranteed by securities issued by the credit institution itself; claims denominated in Vietnamese Dong guaranteed by securities issued by other credit institutions established in Vietnam;
d) Claims denominated in Vietnamese Dong against state financial organizations; claims denominated in Vietnamese Dong guaranteed by securities issued by state financial organizations;
đ) Precious metals (excluding gold), precious stones;
e) Claims against international financial organizations and claims guaranteed for payment by these organizations or secured by securities issued by these organizations;
g) Claims against banks established in OECD countries and claims guaranteed for payment by these banks;
h) Claims against securities companies established in OECD countries that comply with risk-based management and supervision agreements on capital and claims guaranteed for payment by these companies;

i) Claims against banks established outside OECD countries with remaining maturity under one year and claims with remaining maturity under one year guaranteed for payment by these banks."

3. Amending Point 5.3 Clause 5 Article 5 of Circular No. 13 as follows:
"5.3. Assets "Có" with a risk weight of 50% include:
a) Claims denominated in foreign currency against provincial People's Committees;
b) Claims denominated in foreign currency guaranteed by securities issued by the credit institution itself; claims denominated in foreign currency guaranteed by securities issued by other credit institutions established in Vietnam;
c) Claims denominated in foreign currency against state financial organizations; claims denominated in foreign currency guaranteed by securities issued by state financial organizations;

d) Project investment contracts of finance companies in accordance with the laws on the organization and operation of finance companies;đ) Claims fully guaranteed by residential property, land use rights, residential property attached to land use rights of the borrower or these assets leased by the borrower but the lessee agrees to allow the lessor to use them as collateral during the lease period."

Article 2. Effective Date

4. Repealing Section 5 of Circular No. 13 (which has been amended and supplemented at Clause 3 Article 1 of Circular No. 19).

1. This Circular takes effect from September 1, 2011.