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Commercial banks report implementation of derivative instruments
The State Bank of Vietnam (SBV) issued Document No. 11121/NHNN-CSTT on December 23 to require commercial banks to file reports on the implementation of derivative instruments, especially the interest-rate swap transactions by January 5, 2009. This action aims at collecting practical evidence in order to assess the implementation of derivative instruments; completing the legal framework for derivative instruments; and enhancing SBV’s management and supervision related to derivative instruments.
Under the Document, commercial banks are required to consolidate reports on their interest-rate swap transactions during the period of January 1, 2007 and December 31, 2008 in accordance with the regulations set by the SBV Governor in Decision No. 62/QD-NHNN dated December 29, 2006. Specially, the reports should include such specific features as (i) duration of the contracts, amount of the contracts, signing dates, and the results; (ii) assessment of the risks and benefits, and risk management related to different kinds of derivative instruments; (iii) arising difficulties and problems, and solutions to be taken in the coming time; (iv) provision of international documents on derivatives, particularly in management and supervision of central banks (if available).
This Document governs all commercial banks operating in Vietnam, including Vietnamese commercial banks, foreign bank branches and joint-venture banks.
SBV
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