Press release on issuance of Circular No. 31/2024/TT-NHNN
Hanoi, June 30, 2024 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 31/2024/TT-NHNN regulating the classification of assets generated during the operations of a commercial bank, a non-bank credit institution, or a foreign bank branch.
This Circular is composed of 04 Chapters with 17 Articles, specifically as follows:
Chapter I: General provisions, comprising of 8 Articles, stipulating the scope of regulation; the subjects of application; the interpretation of some terms; the collection of customer data and information, the information technology; the internal credit rating system; the internal regulations and the reports on the internal regulations for credit granting, debt management, risk provisioning; the time and the procedures for the classification of debts.
Chapter II: Comprising of 2 Sections with 5 Articles (from Article 9 to Article 13), including: Section 1 (from Article 9 to Article 11) regulating the classification of debts and off-balance sheet commitments; Section 2 (Article 12 and Article 13) regulating the management of debts and off-balance sheet commitments; risk provisioning and utilization of the risk provisioning funds.
Chapter III: Comprising of 1 Article (Article 14) regulating the responsibilities of the SBV.
Chapter IV: Comprising of 3 Articles (from Article 15 to Article 17) providing for the transitional regulations; the implementation arrangements; and the enforcement.
This Circular takes effect from July 1, 2024.
HY