Press release on issuance Circular No.22/2016/TT-NHNN

Press release on issuance Circular No.22/2016/TT-NHNN on purchasing corperate bonds by credit institutions, foreign bank’s branches.

Pursuant to the Law on Credit Institutions 2010, the Governor of the State Bank of Vietnam (SBV) issued Circular No.22/2016/TT-NHNN dated June 30, 2016 to replace Circular No.28/2011/TT-NHNN dated September 1, 2011 on purchasing corperate bonds by credit institutions, foreign bank’s branches. The main contents of Circular No.22/2016/TT-NHNN are as follows:

 Governing scope of the Circular provides regulations for the purchase of enterprise bonds by credit institutions, foreign bank's branches (including the purchase of the first issued corperate bonds and the repurchase of corperate bonds.

Circular stipulates principles of purchasing corperate bonds, different types of corperate bonds are eligible to buy, responsibilities of credit institutions and foreign bank’s branches, buying limitation of corperate bonds, risk ratio, making provisions and risk handling.

This Circular takes effect from August 15, 2016.

The State Bank of Vietnam

Translated by Thoa Le