Circular No. 12/2013/TT-NHNN dated May 27, 2013 of the State Bank of Vietnam amending some articles of the Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the State Bank of Vietnam providing the classification of assets, risk provisioning levels and methods and use of provisions for handling risks in operations of credit institutions and foreign bank branches

PUT OFF DEBT CLASSIFICATION TO 01 YEAR

This decision approved by the State Bank of Vietnam at the Circular No. 12/2013/TT-NHNN dated May 27, 2013 amending some articles of the Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the State Bank of Vietnam providing the classification of assets, risk provisioning levels and methods and use of provisions for handling risks in operations of credit institutions and foreign bank branches

Accordingly, the State Bank of Vietnam decides the implementation time for the  Circular No. 02/2013/TT-NHNN to June 01, 2014 (from 01 year compared with previous regulation). Previously, the Circular No. 02/2013/TT-NHNN regulates that  a credit institution or foreign bank branch shall take measures and regularly collect and use information and data on its customers, including information from the Credit Information Center (CIC) in order to amend and supplement the internal credit-rating system and internal regulations on credit extension, loan management and risk provisioning policy; monitor and evaluate the ability of its customers to repay loans after rating them according to the internal credit-rating system, and take appropriate measures to manage risks and credit quality; classify loans and off-balance sheet commitments, set aside and use risk provisions under this Circular.