Circular 37/2025/TT-NHNN amend Circular 31/2024/TT-NHNN providing the classification of assets in the operation of commercial banks, non-bank credit institutions and foreign bank branches

CIRCULAR

Amending and supplementing a number of articles of Circular No. 31/2024/TT-NHNN of the Governor of the State Bank of Vietnam, providing the classification of assets in the operation of commercial banks, non-bank credit institutions and foreign bank branches

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12;

Pursuant to the Law on Credit Institutions No. 32/2024/QH15, amended and supplemented under Law No. 96/2024/QH15;

Pursuant to the Government’s Decree No. 26/2025/ND-CP defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Banking System Safety;

The Governor of the State Bank of Vietnam hereby promulgates the Circular amending and supplementing a number of articles of Circular No. 31/2024/TT-NHNN dated June 30, 2024, of the Governor of the State Bank of Vietnam, providing the classification of assets in the operation of commercial banks, non-bank credit institutions and foreign bank branches.

Article 1. To amend and supplement Clause 5 of Article 5

“5. Banks and non-bank credit institutions shall send reports to the State Bank in accordance with Clause 4 of this Article. To be specific:

a) Banks and non-bank credit institutions shall send their reports to the State Bank (the Credit Institutions Supervision Department), except the case specified at Point b of this Clause;

b) Foreign bank branches subject to micro-safety inspection and supervision by the SBV regional branches shall send their reports to such branches.”.

Article 2. To amend and supplement Clause 2 of Article 7

 “2. Banks and non-bank credit institutions shall send reports to the State Bank in accordance with Clause 1 of this Article. To be specific:

a) Banks and non-bank credit institutions shall send their reports to the State Bank (the Credit Institutions Supervision Department), except the case specified at Point b of this Clause;

b) Foreign bank branches subject to micro-safety inspection and supervision by the SBV regional branches shall send their reports to such branches.”.

Article 3. To amend and supplement Clause 4 of Article 11

“4. Within 20 (twenty) days from the date of receipt of the complete and valid dossier as prescribed in Clause 3 of this Article, the State Bank shall issue a written approval to the bank or non-bank credit institution to classify loans, make off-balance sheet commitments by the qualitative method as prescribed in this Article. In case of disapproval, the State Bank shall issue a written reply, clearly stating the reason.”.

Article 4. To amend and supplement a number of clauses of Article 14

1. To amend and supplement Clause 1 of Article 14 as follows:

“1. The SBV Inspectorate and the Credit Institution Supervision Department shall have the following responsibilities:

a) The SBV Inspectorate shall inspect and handle violations in the implementation of loan classification, off-balance sheet commitments, setting aside and use of risk provisions of banks and non-bank credit institutions according to the competence as prescribed by law;

b) The Credit Institutions Supervision Department shall:

(i) Receive internal credit rating classification systems of banks and non-bank credit institutions as prescribed in Article 5, and internal regulations on credit extension, loan management, risk provisioning policy of banks and non-bank credit institutions as prescribed in Article7 of this Circular;

(ii) Supervise and handle violations in the implementation of loan classification, off-balance sheet commitments, setting aside and use of risk provisions of banks and non-bank credit institutions according to the competence as prescribed by law;

(iii) Process foreign bank branches’ dossiers of requests for application of risk provisioning policies of foreign banks as assigned, and banks’ and non-bank credit institutions’ requests for permission for implementation of loan classification and off-balance sheet commitments by the qualitative method as assigned.”.

2. To amend Clause 2 of Article 14 as follows:

“2. The Forecasting and Statistics - Monetary and Financial Stabilization Department shall act as the focal point, and coordinate with relevant agencies to, submit to the Governor of the State Bank for promulgation of regulations on statistical reporting regime concerning loan classification, off-balance sheet commitments, setting aside and use of provisions for handling of risks arising in banks’ or non-bank credit institutions’ operations.”.

3. To amend and supplement Clause 5 of Article 14 as follows:

“5. The SBV Regional branches shall:

a) Receive internal credit rating classification systems of foreign bank branches as prescribed in Article 5, and internal regulations on credit extension, loan management, risk provisioning policy of foreign bank branches as prescribed in Article7 of this Circular;

b) Inspect, supervise and handle violations in the implementation of loan classification, off-balance sheet commitments, setting aside and use of risk provisions of banks and non-bank credit institutions within localities according to the competence as prescribed by law;

c) Process foreign bank branches’ dossiers of requests for application of risk provisioning policies of foreign banks, and implementation of loan classification and off-balance sheet commitments by the qualitative method.”.

Article 5. To amend and supplement Article 17

“Article 17. Implementation responsibility

Heads of units under the State Bank of Vietnam, commercial banks, non-bank credit institutions and foreign bank branches shall organize the implementation of this Circular.”.

Article 6. Implementation responsibility

Heads of units under the State Bank of Vietnam, commercial banks, non-bank credit institutions and foreign bank branches shall organize the implementation of this Circular.

Article 7. Effect

This Circular takes effect from December 15, 2025./.