The State Bank of Vietnam (SBV) published the Circular No 06/2021/TT-NHNN, which amends and supplements certain articles of Circular No. 39/2013/TT-NHNN on determining, setting up, managing, and using risk provisions of SBV. The Circular No 06/2021/TT-NHNN takes effect from August 16, 2021. SBV also published Circular No 05/2021/TT-NHNN that amends and supplements certain articles of Circular No. 42/2016/TT-NHNN on regulations on ratings of people's credit funds. This Circular No 05/2021/TT-NHNN takes effect from August 01, 2021. The amendments are related to classification of credit funds, notification of rating results, and responsibilities of State Bank branches, and banking supervisory agency.
The amendments to Circular No. 42/2016/TT-NHNN includes the following:
- People's credit funds shall be classified into Grade A (Good), Grade B (Excellent), Grade C (Average), and Grade D (Weak).
- Before May 31 of every year, State Bank branch shall rate the performance of local people’s credit funds in the preceding year.
- Ratings shall be assigned based on documents, information, and data specified in Article 4 of Circular No. 42/2016/TT-NHNN and additional reports and explanations provided by people’s credit funds during the rating process.
- Within five working days from the date of completion of the rating process, State Bank branch shall report results of rating of people’s credit funds to the Governor of SBV (via Banking Inspection and Supervision Agency) using Form No. 01 issued with Circular No 05/2021/TT-NHNN and announce the rating results (including total score) to each people’s credit fund.
Related Links (in Vietnamese)
Effective Date: August 16, 2021 (Circular No. 6)/August 01, 2021 (Circular No. 5)
Keywords: Asia Pacific, Vietnam, Banking, Credit Risk, Credit Ratings, Credit Funds, SBV
Previous ArticleMNB Issues Multiple Regulatory Updates for Banks
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.