On November 04, 2019, the Governor of the State Bank of Vietnam (SBV) issued Decision No. 2304/QD-NHNN on the implementation of Circular No. 41/2016/TT-NHNN by Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank).
Accordingly, Vietbank shall implement Circular No. 41/2016/TT-NHNN dated December 30, 2016 of the SBV Governor stipulating the capital adequacy ratios for the commercial banks and the foreign banks’ branches in line with Basel II standards (hereinafter referred to as Circular 41), starting from December 1, 2019.
Vietbank is responsible for: (i) Transferring the formal operations from the main system to the backup system for the capital adequacy ratio (CAR) system in December 2019 according to the plan in Report No. 106/2019/TT-IT dated October 8, 2019 of Vietbank; (ii) Adjusting the determination of conditional credit extension commitments in accordance with the provisions of Circular 41 in accordance with the plan in Report No. 70/2019/BC-KTNB dated October 7, 2019 of Vietbank’s Internal Audit; (iii) Complying with the provisions of Circular 41 and the statistical reporting mechanisms on capital adequacy ratios in line with Circular 41 under the guidance of the SBV.
During the period from December 1, 2019 to the end of December 31, 2019, Vietbank shall simultaneously implement the regime of reporting on the minimum capital adequacy ratios in accordance with Circular 41 and Circular No. 36/2014/TT-NHNN dated November 20, 2014 stipulating the minimum safety limits and ratios for transactions performed by credit institutions and foreign banks’ branches (as amended and supplemented).
Decision No. 2304/QD-NHNN took effect from the date of its signing.
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