The State Bank of Vietnam (SBV) issued a Circular that sets out regulations on bank guarantee operations of credit institutions, foreign bank branches, and other entities. The Circular defines bank guarantee as a form of credit extension in which the guarantor being a credit institution or foreign bank branch commits to the guarantee recipient that it will perform financial obligations on behalf of the beneficiary. When the obligee fails to perform or fails to fully perform the obligations committed to the guarantee recipient, the guaranteed party must accept the debt and return it to the guarantor according to the signed agreement. This Circular replaces Circular No. 07/2015/TT-NHNN dated June 25, 2015 and Circular No. 13/2017/TT-NHNN dated September 29, 2017 of the Governor of the State Bank amending and supplementing a number of articles of Circular 07/2015/TT-NHNN dated June 25, 2015 on regulations on bank guarantees. The circular will come in effect from April 01, 2023.
Related Link (in Vietnamese): Circular No. 11/2022/TT-NHNN
Keywords: Asia Pacific, Vietnam, Banking, Credit Risk, Bank Guarantee, Lending, Basel, SBV
Previous ArticleSARB Proposes Final Basel Rules, Issues STC Securitization Directive
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards
The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.
The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.
The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).
The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.