Circular No. 26/2022/TT-NHNN amends and supplements certain Articles of Circular No. 22/2019/TT-NHNN dated November 15, 2019, issued by the Governor of the State Bank of Vietnam, concerning limits and safety ratios in the operations of commercial banks and foreign bank branches.

CIRCULAR

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 to ensure safety in banking operations

 and foreign bank branches (hereinafter referred to as Circular No. 22/2019/TT-NHNN)

The Governor of the State Bank of Vietnam issues this Circular to amend and supplement 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 to ensure safety in banking operations and foreign bank branches.

foreign bank branches

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

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

Article 1. Amending and supplementing certain Articles of Circular No. 22/2019/TT-NHNN

1. Amending and supplementing Point a Clause 4 Article 20 as follows:

(i) Customer margin deposits and dedicated capital deposits;

(ii) Non-interest-bearing deposits of the National Treasury;

(iii) Interest-bearing deposits of the National Treasury according to the following schedule:

- From the effective date of this Circular until December 31, 2023: 50% of the balance of National Treasury deposits;

- From January 1, 2024 to December 31, 2024: 60% of the balance of National Treasury deposits;

- From January 1, 2025 to December 31, 2025: 80% of the balance of National Treasury deposits;

- From January 1, 2026: 100% of the balance of National Treasury deposits."

2. Amending and supplementing Clause 2 Article 24 as follows:

"2. Amending and supplementing Article 23 of Circular No. 41/2016/TT-NHNN as follows:

"Article 23. Effective Date
1. This Circular takes effect from January 1, 2020, except for the cases stipulated in Clauses 2 and 3 of this Article.

2. Banks and foreign bank branches that can implement the capital adequacy ratio prescribed in this Circular before the date specified in Clause 1 of this Article shall submit a registration document to the State Bank of Vietnam (Supervisory Authority) stating their ability to implement and the expected implementation date. The effective date of this Circular for banks and foreign bank branches that have submitted a registration document will be notified in writing by the State Bank of Vietnam.

3. Banks and foreign bank branches that have not met the capital adequacy ratio prescribed in this Circular shall submit a registration document to the State Bank of Vietnam (Supervisory Authority) and the State Bank of Vietnam branch in the province or centrally governed city where the main office of the bank or foreign bank branch is located, registering the minimum capital adequacy ratio according to the regulations of the State Bank of Vietnam on limits and ratios to ensure safety in banking operations and foreign bank branches before January 1, 2020.

The registration document must clearly state the reasons for continuing to implement the minimum capital adequacy ratio according to the regulations of the State Bank of Vietnam on limits and ratios to ensure safety in banking operations and foreign bank branches from January 1, 2020 and the plan (measures, schedule) to ensure compliance with the provisions of this Circular no later than January 1, 2023, except for banks implementing the restructuring plan with bad debt resolution approved according to Decision No. 689/QĐ-TTg dated June 8, 2022 of the Prime Minister approving the Project "Restructuring of Credit Organizations Linked with Bad Debt Resolution for the Period 2021-2025" (hereinafter referred to as the Restructuring Plan). Banks that have not met the capital adequacy ratio prescribed in this Circular must develop a plan (measures, schedule) to ensure compliance with the provisions of this Circular, incorporate it into the Restructuring Plan, and seek approval from the competent authority.

The effective date of this Circular is the date recorded in the registration document or the schedule in the approved Restructuring Plan. During the period when this Circular has not yet taken effect, banks shall implement the minimum capital adequacy ratio according to the regulations of the State Bank of Vietnam on limits and ratios to ensure safety in banking operations and foreign bank branches."
The Director of the Office, the Director of Supervision, inspection units under the State Bank of Vietnam, heads of units under the State Bank of Vietnam, banks, and foreign bank branches are responsible for organizing the implementation of this Circular.

Article 2. Responsibility for Implementation

This Circular takes effect from December 31, 2022./.

Article 3. Implementation Provisions

This Circular takes effect from December 31, 2022./.