THE STATE BANK OF VIETNAM
Directive No. 06/CT-NHNN dated July 20, 2017 of the State Bank of Vietnam on implementing the Resolution No. 42/2017/QH14 on pilot settlement of bad debts of credit institutions and Decision No. 1058/QD-TTg on approving Scheme for “Restructuring system of credit institutions associated with settlement of bad debts in the period of 2016-2020
On June 21, 2017, the 14thNational Assembly passed the Resolution No. 42/2017/QH14 on pilot settlement of bad debts of credit institutions (hereinafter referred to as Resolution No. 42/2017/QH14). Resolution No. 42/2017/QH14 deals with pilot policies for settlement of bad debts and treatment of assets tied to bad debts (hereinafter referred to as collateral) to eliminate difficulties and create legal basis for credit institutions and branches of foreign banks to completely settle bad debts and enable the system of credit institutions (hereinafter referred to as the system) to promote its role to provide capital for business.
On July 19, 2017, the Prime Minister promulgated Decision No. 1058/QD-TTg on approving the Scheme for restructuring system associated with settlement of bad debts in the period of 2016-2020 (hereinafter referred to as Scheme 1058). The continual restructuring of system associated with settlement of bad debts in the period of 2016-2020 is deemed necessary to remedy defects of the system of credit institutions in previous periods, and follow and inherit achievements obtained during the initiation of Decision No. 254/QD-TTg with a view to create the foundation for the safe and sustainable development of the system by 2020.
In order to effectively implement the said Resolution No. 42/2017/QH14 and Decision No. 1058/QD-TTg, the Governor of the State bank of Vietnam requires affiliates of the State bank and credit institutions, branches of foreign banks (hereinafter referred to as credit institutions) to heighten their awareness and perform the following key tasks:
I. Objectives
Measures for restructuring of system associated with settlement of bad debts as mentioned in Scheme 1058 will be synchronously initiated, financial situation will be made healthier, administration capacity of credit institutions will be improved as per the law and in conformity with international practice; commercial banks, by 2020, are basically expected to have regulatory capital as required by Basel II; and at least 1 or 2 commercial banks is/are ranked in the Asia’s 100 largest banks.
Resolution No. 42/2017/QH14 will be implemented effectively to completely settle bad debts and collateral under scope of Resolution, measures for avoidance of incurring bad debts and improvement of credit quality will be initiated; the role of VAMC in settlement of bad debts will be enhanced. By 2020, bad debt ratio of the system, bad debt ratio to be sold to VAMC and bad debt ratio having undergone classification measures is expected to account for less than 3% (excluding financially weak commercial banks of which specific settlement plans have been approved by the government).
II. Specific tasks and measures
1. Affiliates of the State bank shall perform the following tasks:
a) Office of the State Bank
Take charge and cooperate with Bank Supervision and Inspection Agency, the Legal Department, and relevant units in holding a meeting of training of Resolution No. 42/2017/QH14 and Decision No. 1058/QD-TTg on approving the Scheme on restructuring of the system of credit institutions in association with the settlement of bad debts in the 2016-2020 period in banking sector as a whole no later than July 25, 2017.
b) Department of Communication
Take charge of communications in terms of implementation of Resolution No. 42/2017/QH14 and Scheme 1058.
c) Bank Supervision and Inspection Agency
- Formulate and request the Governor to promulgate a banking action plan for initiation of the Scheme on restructuring of the system of credit institutions in association with the settlement of bad debts in the 2016-2020 period.
- Direct each credit institution to make plan for restructuring associated with settlement of bad debts in the period of 2017-2020, and submit it to the State Bank for approval, containing annual plans for settlement of bad debts and supervise these plans.
- Take charge and cooperate with relevant units in requesting the Governor to amend the following legislative documents:
+ Circular on amendments to Circular No. 19/2013/TT-NHNN dated September 6, 2013 on trading and settlement of bad debts of Vietnamese credit institutions and guidelines for Article 6 of Resolution No. 42/2017/QH14. This Circular will be promulgated before August 15, 2017.
+ Circular replacing Circular No. 44/2011/TT-NHNN dated December 19, 2011 on internal control system, internal audit of credit institutions and Circular on procedures for banking supervision. These Circulars will be promulgated before August 31, 2017
- Formulate and request the Government to promulgate a Decree on amendments to the Government s Decree No. 26/2014/ND-CP dated April 7, 2014 on organization and operation of banking supervision and inspection and present the Prime Minister with decision draft replacing Decision No. 35/2014/QD-TTg of the Prime Minister dated June 12, 2014 on functions, tasks, powers and organizational structure of Bank Supervision and Inspection Agency affiliated to the State Bank in the third quarter of 2017.
- Regularly review and request the improvement of legal framework in terms of credit extension, administration of credit institutions, especially risk management to avoid incurring bad debts;
- Request the Governor to issue banking supervision handbooks before September 30, 2017.
- Inspect and supervise the implementation of Resolution No. 42/2017/QH14 by credit institutions, VAMC; propose measures for improvement the inspection and supervision of the system of Bank Supervision and Inspection Agency.
- Receive reports from relevant ministries and prepare a consolidated report on implementation of Resolution No. 42/2017/QH14.
- Receive reports, prepare and send an annual report on data of settlement of bad debts of credit institutions and VAMC to the Government (before September 15), to Standing Committee of the National Assembly, the National Assembly (before October 1) as required by Resolution No. 42/2017/QH14. Annual data of settlement of bad debts shall be determined from August 15 of the previous year to August 15 of reporting year; and instruct VAMC to prepare and send annual reports.
- Make a consolidated report on implementation of Resolution No. 42/2017/QH14 and send it to the Government (before November 30, 2021), to the Standing Committee of National Assembly, National Assembly (before December 31, 2021) as required by the Resolution and send a report on initiation of Scheme 1058 to Governor of the State Bank, which shall be subsequently sent to the Government.
- Cooperate with the Legal Department in reviewing and requesting improvement of legal framework in terms of restructuring of financially-weak credit institutions on the basis of consolidated report on implementation of the Scheme on restructuring of the system of credit institutions in association with the settlement of bad debts in the 2016-2020 period.
- Take charge and request competent authorities to handle difficulties arising during the implementation of Scheme 1058.
c) Legal Department
- Handle difficulties arising during the implementation of Resolution No. 42/2017/QH14 or requesting competent authorities to handle them.
- Propose improvement of legal system in terms of settlement of bad debts and collateral on the basis of application of regulations of Resolution No. 42/2017/QH14 and improvement of legal framework in terms of restructuring of financially-weak credit institutions after completion of the Scheme on restructuring of the system of credit institutions in association with the settlement of bad debts in the 2016-2020 period.
d) Other departments affiliated to the State Bank
Effectively perform or ensure schedule and quality of tasks as mentioned in the banking action plan in initiating the Scheme on restructuring of the system of credit institutions in association with the settlement of bad debts in the 2016-2020 period promulgated by Governor of the State Bank.
dd) Branches of the State Bank of provinces and central-affiliated cities (hereinafter referred to as provinces)
- Cooperate with local governments and competent regulatory agencies in provinces in implementing Resolution No. 42/2017/QH14 and structural plan associated with settlement of bad debts in the period of 2017-2020 of credit institutions in provinces.
- Inspect and supervise the implementation of Resolution No. 42/2017/QH14 in provinces.
- Promptly report on difficulties arising during the implementation of Resolution No. 42/2017/QH14 to the Legal Department affiliated to the State Bank and difficulties arising during the implementation of Scheme 1058 to Bank Supervision and Inspection Agency affiliated to the State Bank.
2. VAMC
- Heighten its awareness of Resolution No. 42/2017/QH14; make and initiate annual plan for settlement of bad debts and trading of bad debts according to market prices.
- Comprehensively adopt measures prescribed in Resolution No. 42/2017/QH14 to accelerate the settlement of bad debts and collateral purchased by VAMC.
- Send monthly reports on settlement of bad debts no later than 25thof the month succeeding the reporting month, as guided by the State Bank, to Bank Supervision and Inspection Agency affiliated to the State Bank.
- Annually, evaluate the effectiveness and feasibility of pilot policies prescribed in Resolution No. 42/2017/QH14 on the basis of achievements of VAMC and propose amendments to regulations of law on settlement of bad debts and collateral and relevant law provisions to the Legal Department affiliated to the State Bank.
- Promptly report on difficulties arising during the trading and settlement of bad debts and collateral as prescribed in Resolution No. 42/2017/QH14 to the Legal Department affiliated to the State Bank.
3. Credit institutions
- Heighten individual credit institutions’ awareness of Resolution No. 42/2017/QH14 and Scheme 1058;
- Formulate a structural plan associated with settlement of bad debts in the period of 2017-2020, closely conforming to policies in Resolution No. 42/2017/QH14 and measures in Scheme 1058 and submit it to the State Bank for approval; initiate the plan which has been approved with comprehensive application of measures prescribed in Resolution No. 42/2017/QH14 to accelerate the settlement of bad debts and collateral to stick to the objectives stated in the plan approved by the State Bank.
- Send monthly reports on settlement of bad debts no later than 25th of the month succeeding the reporting month, using the form issued herewith, to Bank Supervision and Inspection Agency affiliated to the State Bank.
- Adopt measures for improving internal administration capacity, especially risk management, improving credit appraisal quality, improving qualifications of personnel in charge of credit appraisal and debt settlement.
- Effectively adopt measures for avoiding incurring bad debts by violations of law at individual credit institutions.
- Regularly review and report on clients and estimated profits prescribed in Article 16 of Resolution No. 42/2017/QH14 in accordance with guiding documents of Bank Supervision and Inspection Agency.
- Annually, evaluate the effectiveness and feasibility of pilot policies prescribed in Resolution No. 42/2017/QH14 on the basis of achievements of credit institutions and propose amendments to regulations of law on settlement of bad debts and collateral and relevant law provisions to the Legal Department affiliated to the State Bank.
- Promptly report on difficulties arising during the implementation of Resolution No. 42/2017/QH14 to the Legal Department affiliated to the State Bank and difficulties arising during the implementation of Scheme 1058 to Bank Supervision and Inspection Agency affiliated to the State Bank.
III. Implementation
1. This Directive takes effect on the signing date.
2. The Chief officers, the Chief Banking Inspector-Supervisor and heads of affiliates of the State bank, Directors of State Bank’s branches of provinces, Presidents of the Board of Directors, Presidents of the Member assembly and General Directors (Directors) of credit institutions, President of the Member assembly and General Director of VAMC shall implement this Directive./.
The Governor
Le Minh Hung
REPORT ON CLASSIFICATION OF DEBTS UNDER RESOLUTION NO. 42/2017/QH14
(…...………..) [month and year]
Unit: VND million
No. | Criteria | Group 3 | Group 4 | Group 5 | Bad debts
(total from group 3 to group 5) | Total debt | | | |
Total | In which | Total | In which: | Total | In which: | | | | |
Quantitative approach | Qualitative approach | | Quantitative approach | Qualitative approach | | Quantitative approach | Qualitative approach | | | | |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | | | |
I | Total debt (=1=2=3=4) | | | | | | | | | | | | | | |
1 | Classified by list of assets (=1.1+ 1.2+ 1.3+ 1.4+ 1.5+ 1.6+ 1.7+ 1.8+ 1.9) | | | | | | | | | | | | | | |
1.1 | Lending | | | | | | | | | | | | | | |
1.2 | Finance lease | | | | | | | | | | | | | | |
1.3 | Discounts, rediscounts of negotiable instruments and other valuable papers | | | | | | | | | | | | | | |
1.4 | Factoring | | | | | | | | | | | | | | |
1.5 | Credit extension in the form of credit card issuance | | | | | | | | | | | | | | |
1 6 | Repayment on behalf of others according to off-balance sheet commitments | | | | | | | | | | | | | | |
1.7 | Delegation of credit extension | | | | | | | | | | | | | | |
1.8 | Debt purchase | | | | | | | | | | | | | | |
1.9 | Purchase and delegation of purchase of unlisted corporate bonds on securities market or unregistered corporate bonds on market of unlisted public companies | | | | | | | | | | | | | | |
2 | Classified by term (=2.1+2.2) | | | | | | | | | | | | | | |
2.1 | Short-term outstanding debt | | | | | | | | | | | | | | |
2.2 | Mid-term and long-term outstanding debt | | | | | | | | | | | | | | |
3 | Classified by currency (=3.1+3.2) | | | | | | | | | | | | | | |
3.1 | VND | | | | | | | | | | | | | | |
3.2 | Foreign currency | | | | | | | | | | | | | | |
4 | Classified by collateral (=4.1+4.2) | | | | | | | | | | | | | | |
4.1 | Principal balance without collateral | | | | | | | | | | | | | | |
4.2 | Principal balance with collateral | | | | | | | | | | | | | | |
II | Value of collateral (=1+2+3+4) | | | | | | | | | | | | | | |
1 | Collateral being real estate | | | | | | | | | | | | | | |
2 | Collateral being machinery, equipment, supply, goods | | | | | | | | | | | | | | |
3 | Collateral being valuable papers | | | | | | | | | | | | | | |
4 | Other collateral | | | | | | | | | | | | | | |
III | Balance of loan loss reserves set aside (=1+2) | | | | | | | | | | | |
1 | General reserves | | | | | | | | |
2 | Specific reserves | | | | | | | | |
1. Regulated entities:Credit institutions, branches of foreign banks;
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25thof the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency; State Bank’s branches of provinces.
5. Guidelines:
- No data will be inserted into gray boxes;
- Total debt will be determined according to activities prescribed in Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly and debts incurred before August 15, 2017;
Bad debts and relevant accounts will be determined as prescribed in Article 4 of Resolution No. 42/2017/QH14 and Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly;
- Bad debts will be determined according to qualitative approach and quantitative approach as prescribed in Article 3 and Article 4 of Appendix on determination of bad debts issued together with Resolution No. 21/6/2017 dated June 21, 2017 of the National Assembly;
+ Criteria 1: statistics on outstanding debts according to criteria of column (3) through column (13)
+ Criteria 2: statistics on outstanding debts according to initial term of debts according to criteria of column (3) through column (13)
+ Criterion 2.1: statistics on short-term outstanding debts according to criteria of column (3) through column (13).
+ Criterion 2.2: statistics on mid-term and long-term outstanding debts according to criteria of column (3) through column (13).
+ Criterion 3.1: statistics on outstanding debts in VND according to criteria of column (3) through column (13).
+ Criterion 3.2: statistics on outstanding debts in foreign currency or gold to be converted into VND according to criteria of column (3) through column (13).
+ Criterion 4.1: statistics on principal balance without collateral.
+ Criterion 4.2: statistics on principal balance with collateral.
- Section II: statistics on value of collateral which is valuated at the latest time, corresponding to criteria of column (3) through column (13).
+ Criteria 1: statistics on value of collateral being real estate equivalent to criteria of column (3) through column (13).
+ Criteria 2: statistics on value of collateral being machinery, equipment, supply, goods equivalent to criteria of column (3) through column (13).
+ Criteria 3: statistics on value of collateral being valuable papers equivalent to criteria of column (3) through column (13).
+ Criteria 4: statistics on value of collateral being other assets equivalent to criteria of column (3) through column (13).
- Section III statistics on remaining amount after setting aside loan loss reserve until the reporting time
+ Criteria 1: statistics on general remaining amount after setting aside loan loss reserve until the reporting time (general remaining amount of the reporting period).
+ Criteria 2: statistics on specific remaining amount after setting aside loan loss reserve until the reporting time (specific remaining amount of the reporting period).
Reported by:………. | Form No. 02-TTGS |
REPORT ON BAD DEBTS TO CLIENTS UNDER RESOLUTION 42/2017/QH14
(…………………..) [month and year]
Unit: VND million
No. | Borrower | Bad debt | | | | | |
Name | TIN | ID/Passport number | Bad debts | Collateral | Balance of loan loss reserves set aside | | | | |
Group 3 | Group 4 | Group 5 | Total value of collateral | In which | | | | | |
Real estate | Machinery, equipment, supply, goods | Valuable papers | Other assets | | | | | |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | | | | |
1 | First borrower | | | | | | | | | | | | | | | |
2 | Second borrower | | | | | | | | | | | | | | | |
| ….. | | | | | | | | | | | | | | | |
n | nth borrower | | | | | | | | | | | | | | | |
A | Total | | | | | | | | | | | | | | | |
1. Regulated entities:Credit institutions, branches of foreign banks;
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25 of the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency; State Bank’s branches of provinces.
5. Guidelines:
- Bad debts and relevant accounts being determined as prescribed in Article 4 of Resolution No. 42/2017/QH14 and Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly;
- Column (2): statistics on names of borrowers with bad debts and progress of settlement of bad debts:
Detailed information of individual borrowers shall be provided criteria of column (2) through column (13) of Form No. 02-TTGS and of column (2) through column (34) of Form No. 03-TTGS. Form No. 02-TTGS has data connection with Form No. 03-TTGS (columns (2), (3), (4)).
- Column (3): TIN in case of organizations.
- Column (4): ID/Passport number in case of individuals.
- Columns (5), (6), (7): statistics on outstanding debts in group 3, 4, and 5 of borrowers until the last working day of the reporting period.
- Columns (8), (9), (10), (11), (12): value of collateral being valuated at the latest time. Column (8) = Column (9)+(10)+(11)+(12). Column (9) includes value of off-the-plan real estate. In case of absence of collateral, columns (8), (9), (10), (11), (12) will be left blank.
- Column (13): Specific amount of loan loss reserves set aside until the reporting time.
Reported by:………. | Form No. 03-TTGS |
REPORT ON BAD DEBTS UNDER RESOLUTION NO. 42/2017/QH14
(…...………..) [month and year]
Unit: VND million
| Borrower | Settlement of bad debts | Reduction due to transfer of debt groups | | | | | | | | | | | | | | | | | | | | |
No. | Name | TIN | ID/Passport number | Total of bad debts | | In which | | | | | | | | | | | | | | | | | | | | | | |
Total | Repaid amount | Credit institution receives collateral instead of debt repayment | Sale, disposition of collateral for debt recovery | Use of loan loss reserves | Conversion of bad debts into stakes | Repaid by third party | Sale of debts | | Other methods of settlement of bad debts | | | | | | | | | | | | | | | | | | | | | |
Total | In which | | | Sold to Debt and Asset Trading Corporation | Sold to VAMC | Sold to others | Total sold bad debts | | | | | | | | | | | | | | | | | | | | | | |
Debt purchaser’s name | Debt purchaser’s code | TIN/ID or passport number | Sold bad debts | | | | | | | | | | | | | | | | | | | | | | |
Sold by credit institution | Sold by judgment enforcement body | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | (2) | (3) | (4) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | (21) | (22) | (23) | (24) | (25) | (26) | (27) | (28) | (29) | (30) | (31) | (32) | | | | | | | | | | | | | | | | | | | | |
1 | First borrower | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2 | Second borrower | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| … | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
n | nth borrower | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. Regulated entities:Credit institutions, branches of foreign banks;
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25th of the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency; State Bank’s branches of provinces.
5. Guidelines:
- Bad debts and relevant accounts being determined as prescribed in Article 4 of Resolution No. 42/2017/QH14 and Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly;
- Column (2): statistics on names of borrowers with bad debts and progress of settlement of bad debts:
Detailed information of individual borrowers shall be provided criteria of column (2) through column (13) of Form No. 02-TTGS and of column (2) through column (34) of Form No. 03-TTGS. Form No. 02-TTGS has data connection with Form No. 03-TTGS (columns (2), (3), (4)).
- Column (3): TIN in case of organizations.
- Column (4): ID/Passport number in case of individuals.
- Column (14): statistics on total bad debts until the reporting time in case of bad debts incurred before August 15, 2017.
- Column (15): statistics on total settled bad debts accruing from the beginning of the year to the last working day of the reporting period.
- Column (15) = Column (16) + (17) + (18) + (21) + (22) + (23) + (30) + (31).
- Column (16): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to borrower’s repayment.
- Column (17): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to collateral received instead of repayment liability.
- Column (18): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to sale or disposition of collateral for debt recovery.
- Column (19): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to sale or disposition of collateral for debt recovery by credit institution.
- Column (20): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to sale or disposition of collateral for debt recovery by credit institution.
- Column (21): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to use of loan loss reserves.
- Column (22): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to conversion of bad debts into stakes.
- Column (23): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to debt repayment by the third party.
- Column (24): statistics on collected amount, accruing from the beginning of the year to the last working day of the reporting period due to sale of debts to Debt and Asset Trading Corporation (DATC).
- Column (25): statistics on sum of money, value of collected special bonds, accruing from the beginning of the year to the last working day of the reporting period due to sale of debts to VAMC.
- Column (26): Debt purchaser’s name.
- Column (27): statistics on purchaser’s code: “TC" for debt purchasers being organizations or ”CN" for debt purchasers being individuals.
- Column (28): TIN in case of organizations, ID/Passport number in case of individuals.
- Column (29): statistics on collected amount, accruing from the beginning of the year to the last working day of the reporting period due to sale of debts to other entities.
- Column (30) = Column (24) + Column (25) + Column (29).
- Column (31): statistics on reduced amount of principal bad debt balance, accruing from the beginning of the year to the last working day of the reporting period due to other reasons apart from those prescribed in columns (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), (29).
- Column (32): statistics on reduced amount of debt balance accruing from the beginning of the year to the last working day of the reporting period due to change of debt group.
Reported by:………. | Form No. 04-TTGS |
REPORT ON BAD DEBT BALANCE UNDER RESOLUTION NO. 42/2017/QH14
CLASSIFIED BY ECONOMIC SECTORS
Unit: VND million
No. | Sector code | Debt balance | Bad debts |
By term | By currency | By term | By currency |
Short-term | Mid-, long-term | VND | Foreign currency converted into VND | Short-term | Mid-, long-term | VND | Foreign currency converted into VND |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) |
| …. | | | | | | | | |
| …. | | | | | | | | |
A | Total | | | | | | | | |
1. Regulated entities:Credit institutions, branches of foreign banks;
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25th of the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency; State Bank’s branches of provinces.
5. Guidelines:
- Total debt being determined according to activities prescribed in Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly and debts incurred before August 15, 2017;
- Bad debts and relevant accounts being determined as prescribed in Article 4 of Resolution No. 42/2017/QH14 and Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly;
- Unit being determined according to VND and foreign currency converted into VND as guided in Part 1 Appendix 2 of Circular No. 35/2015/TT-NHNN.
- These criteria shall be applied according to regulations in force of the State Bank on prudential ratio in operation of credit institutions, branches of foreign banks.
- Column (2): insert sector codes according to purpose of credit extension as prescribed in Table 1 Appendix 2 of Circular No. 35/2015/TT-NHNN.
- Column (3) + Column (4) = Column (5) + Column (6).
Column (7) + Column (8) = Column (9) + Column (10).
Reported by:………. | Form No. 05-TTGS |
REPORT ON BAD DEBT BALANCE UNDER RESOLUTION NO. 42/2017/QH14
CLASSIFIED BY TYPES OF BUSINESS ENTITIES
Unit: VND million
No. | Business entity code | Debt balance | Bad debts |
By term | By currency | By term | By currency |
Short-term | Mid-, long-term | VND | Foreign currency converted into VND | Short-term | Mid-, long-term | VND | Foreign currency converted into VND |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) |
| … | | | | | | | | |
| … | | | | | | | | |
A | Total | | | | | | | | |
1. Regulated entities:Credit institutions, branches of foreign banks;
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25th of the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency; State Bank’s branches of provinces.
5. Guidelines:
- Total debt being determined according to activities prescribed in Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly and debts incurred before August 15, 2017;
- Bad debts and relevant accounts being determined as prescribed in Article 4 of Resolution No. 42/2017/QH14 and Article 2 of Appendix on determination of bad debts issued together with Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly;
- Statistics on VND and foreign currencies converted into VND as prescribed in Part 1 Appendix 2 of Circular No. 35/2015/TT-NHNN.
- Column (2): insert type of business entity as prescribed in Table 2 Appendix 3 of Circular No. 35/2015/TT-NHNN.
- Column (3) + Column (4) = Column (5) + Column (6).
- Column (7) + Column (8) = Column (9) + Column (10).
Reported by:………. | Form No. 06-TTGS |
REPORT ON INVESTMENT IN CORPORATE BONDS, OTHER ACCOUNTS RECEIVABLE, ESTIMATED PROFITS AND UNSETTLED DEBTS SOLD TO VAMC OF CREDIT INSTITUTIONS, BRANCHES OF FOREIGN BANKS
(…………………) [month and year]
Unit: million VND
No. | Description | Classified by type of business entity | Classified by economic sector |
State-owned enterprise | Non-state owned enterprise | Foreign-invested enterprise | Household business, individual | Non-business body, communist party, union and association | Other | Agriculture, forestry and aquaculture | Mining and quarrying | Processing and manufacturing | Electricity, gas, steam and air conditioning supply | Water supply, sewerage, waste management and remediation activities | Construction | Wholesaling and retailing; repair of automobiles, motorbikes, mopeds and other motor vehicles | Transportation and storage | Accommodation and food service | Information technology and communications | Finance, banking, insurance | Real estate business | Professional activities, science and technology | Administrative and ancillary services | Communist Party, socio-political organizations, state management, national defense and security and compulsory social insurance operations | Education and training | Health and social aid | Art, recreation and entertainment | Other services | Hiring employees in resident households, producing physical products and self consumption services of households | Operations of international organizations |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | (21) | (22) | (23) | (24) | (25) | (26) | (27) | (28) | (29) |
I | Investment in corporate bonds (=1.1+ 1.2+ 1.3) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
I.1 | Without collateral and guarantee of a third party | | | | | | | | | | | | | | | | | | | | | | | | | | | |
I.2 | With collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
I.3 | With guarantee of a third party | | | | | | | | | | | | | | | | | | | | | | | | | | | |
I.4 | Value of collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
I.5 | Balance of loan loss reserves set aside | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II | Investment in corporate bonds likely to become bad debts (=II.1+ II.2+ II.3) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.1 | Without collateral and guarantee of a third party | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.2 | With collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.3 | With guarantee of a third party | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.4 | Value of collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.5 | Balance of loan loss reserves set aside | | | | | | | | | | | | | | | | | | | | | | | | | | | |
II.6 | Loan loss reserve to be set aside if corporate bonds become bad debts | | | | | | | | | | | | | | | | | | | | | | | | | | | |
III | Other accounts receivable (=III.1+ III.2) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
III.1 | Without collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
III.2 | With collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
III.3 | Value of collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
III.4 | Balance of loan loss reserves set aside | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV | Other doubtful amounts receivable | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV. 1 | Without collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV.2 | With collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV.3 | Value of collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV.4 | Balance of loan loss reserves set aside | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV.5 | Loan loss reserve to be set aside if doubtful amounts receivable become bad debts | | | | | | | | | | | | | | | | | | | | | | | | | | | |
V | Estimated profits | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: Estimated profits earned from credit activities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VI | Estimated profits to be disinvested | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: Estimated profits earned from credit activities to be disinvested | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VII | Unsettled bad debts sold to VAMC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VII.1 | Value of collateral | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In which: real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VII.2 | Balance of loan loss reserves set aside | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. Regulated entities:Credit institutions.
2. Requirements for reporting data:Headquarters of each credit institution shall make a consolidated report on system’s data as a whole and send it to Information Technology Administration affiliated to the State Bank.
3. Time limit:No later than 25th of the month succeeding the reporting month.
4. Receiving and approving body:Bank Supervision and Inspection Agency
5. Guidelines:
Scope of report:report on debts and relevant accounts incurring before August 15, 2017,in particular:
1. Types of business entities classified according to Table 2 Appendix 3 of Circular No. 35/2015/TT-NHNN dated December 31, 2015 on statistical reports applicable to credit institutions, branches of foreign banks and replacing documents (if any) include:
- State-owned enterprises, inclusive of: state-owned companies, single-member limited liability companies of which charter capital is wholly held by the state, multiple-member limited liability companies of which 50% charter capital is held by the state or controlled by the state, joint-stock companies of which 50% charter capital or voting shares is held by the state; or the state holds the controlling right as specified in the Charter of the company.
- Non-state owned enterprises, inclusive of: Other limited liability companies, joint-stock companies, partnerships, sole proprietorships, cooperatives and unions of cooperatives
2. Economic sectors classified according to Table 1 Appendix 3 of Circular No. 35/2015/TT-NHNN dated December 31, 2015 on statistical reports applicable to credit institutions, branches of foreign banks and replacing documents (if any)
3.
- Section I – Investment in corporate bonds: Balance of investment in corporate bonds accruing before August 15, 2017 to the reporting time, including investment in corporate bonds likely to become bad debts - Section II
- Section II - Investment in corporate bonds likely to become bad debts: including (1) investment in corporate bonds for the purpose of debt restructuring; (2) investment in corporate bonds in which the issuing enterprise has debts restructured by credit institution; (3) investment in corporate bonds which are likely to become bad debts in the future by credit institution.
- Section III – Other accounts receivable: Balance of other accounts receivable (account 359) of debts incurred before August 5, 2017 to reporting time, including other doubtful accounts receivable – Section IV
- Section IV - Other doubtful amounts receivable: Including (1) other overdue accounts receivable; (2) period of capital recovery of at least 5 years; (3) other accounts receivable for writing off debts; (4) other accounts receivable for clients who buy or redeem assets that have been offset; (5) selling unpaid debts.
- Section V - Estimated profits: estimated profits (account 39) of debts incurred before August 15, 2017, including estimated profits to be disinvested – Section VI
- Section VI- Estimated profits to be disinvested: estimated unreasonable profits to be disinvested but having not been disinvested of debts incurred before August 15, 2017.
- Section VII- Unsettled bad debts sold to VAMC: VAMC s face value after bad debt deduction for VAMC has been processed of debts incurred before August 15, 2017.
Vietnamese
Directive 06/CT-NHNN DOC (Word)
Directive 06/CT-NHNN PDF (Original)
Directive 06/CT-NHNN ZIP (Word)
