Environmental risk management in credit extension activities

On December 23, 2022, The Governor of the State Bank of Vietnam issues Circular No. 17/2022/TT-NHNN providing guidance on environmental risk management in credit extension activities of credit institutions and foreign bank branches.

Accordingly, information serving the environmental risk management in credit extension activities includes:

• Environmental information about the client’s investment project;
• Decision on approval of appraisal results of preliminary environmental impact assessment report, environmental impact assessment report as prescribed by law, environmental license, and environmental registration (if any).
• Inspection and examination results in terms of compliance with regulations on environmental protection by the investment project given by competent environmental protection agencies.
• The environmental protection reports submitted by the client to competent state agencies in accordance with the law on environmental protection....

Besides, credit institutions shall formulate their own internal regulations on environmental risk management in credit extension activities which may be separated from or included in their internal regulations on credit extension and internal control, and must be conformable with the law on credit extension and credit risk management.

This Circular takes effect on June 01, 2023