SBV takes measures against credit risks

The Governor of the State Bank of Vietnam (SBV), on December 9, 2008, issued a notice requiring credit institutions to file reports on loan classification, provisioning and use of provisions against credit risks in line with Official Letter No.13684/NHNN-CSTD of the SBV dated December 26, 2007.

Accordingly, credit institutions need to intensively classify loans, assess credit quality, actively collect information and strictly implement the regulations of loan classification. In addition, credit institutions also have to revaluate the sale potential and depreciation proportion of all the secured assets in order to make provisioning in accordance with Article 8 of Revised Decision No.493 under Decision No.18/2007/QD-NHNN of April 25, 2007.

The aforesaid directives were issued by the SBV Governor in the context of the complicated global financial and economic crisis which adversely affects the Vietnamese economy, especially debt repayment of customers, and credit institutions’ liquidity and secured asset recovery.

SBV

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