|
SBV issues regulations on prudent ratios for small-sized finance institutions
The State Bank of Vietnam (SBV) issued Circular No. 07/2009/TT-NHNN on April 17 to stipulate prudent ratios applicable to small-sized finance institutions in Vietnam, including capital adequacy ratio, lending cap for a single borrower, and the solvency ratio.
Under the Circular, the small-sized finance institutions are required to maintain the capital adequacy ratio equivalent to 10% of its own capital over the total risky “assets”.
The lending cap for the borrowers : The total loan outstanding of a small-sized finance institution should be as follows: (i) for a non small-sized financial customer, it should not exceed 10% of the total own capital of the small-sized finance institution; and (ii) for a small-sized financial customer, it should not be larger than VND 30 million (this cap may be adjusted by the SBV Governor from time to time);…
The solvency ratio: the small-sized finance institutions should constantly maintain the minimum ratio of solvency at 20% (the calculation formula of this ratio is prescribed in Appendix B of the Circular).
In addition, SBV will base itself on the oversight outcome of practical performance of small-sized finance institutions to ask them to maintain higher prudent ratios than stipulated . The Circular will take effect after 45 days from the signing date.
(For more details, please read the Vietnamese version of the Circular on the Website of the SBV).
sbv
|
