HBBank permitted to conduct sovereign credit risk - linked derivative operation

The State Bank of Vietnam (SBV) issued, on April 16, Document No. 2723/NHNN-CSTT to allow the Hanoi Building Commercial Joint Stock Bank (HBBank) to conduct sovereign credit risk - linked derivative operations.

Accordingly, HBBank is permitted to conduct sovereign credit risk - linked derivative operations based on the foreign currency-denominated Government bonds issued in overseas markets. The sovereign credit risk - linked derivative product is provided by the Hongkong and Shanghai Banking Corporation Limited (HSBC) and the Standard Chartered Bank.

The Governor requires HBBank to be fully responsible for conducting sovereign credit risk – linked derivative investments, and working out necessary procedures on conducting sovereign credit risk – linked derivative investments and risk provisioning related to this product in line with international practices and the Vietnamese regulations on foreign exchange management with proper capital adequacy ratios and risk provisioning.

Thu Huong

sbv

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