Requirements for internal rules and regulations on credit extension and management of loans/debts in Vietnam

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Question date: 26/09/2022

Please provide me with the requirements for internal rules and regulations on credit extension and management of loans/debts in Vietnam? Looking forward to hearing from you soon.

    • Internal rules and regulations on credit extension and management of loans/debts in Vietnam specified in Clause 2, Article 6 of Circular 11/2021/TT-NHNN, specifically as follows:

      2. Internal rules and regulations on credit extension and management of loans/debts must include, but not limited to, the following requirements:

      a) They should be formulated based on data and information of all borrowers collected, ratings that borrowers are given according to the intracorporate credit rating system;

      b) They should be implemented consistently throughout the entire system as a basis for review and approval of credit granting and loan management for specific borrowers.

      c) They must include regulations of credit policies applied to borrowers, including those related to credit granting conditions, credit limits, interest rates, application and documentation requirements and procedures for review and approval of credit granting and loan management;

      d) They must include management regulations to ensure compliance with SBV's regulations on prudential ratios for the operations of credit institutions and foreign bank branches;

      dd) They must include regulations on responsibilities and powers of their departments, affiliates and individuals in the review and approval of credit granting, credit quality management and security property management;

      e) They must include regulations on procedures for inspection and control before, during and after credit extension;

      g) They must encompass regulations on measures for provision of security, review and management of security property;

      h) They must cover regulations on valuation of security property, including principles, periods, methods, processes and responsibilities of each department, affiliate or individual involved in the valuation of security property in accordance with the provisions of law to ensure that the value of security property corresponds to the market value when calculating the amounts set aside for specific provisions under this Circular;

      i) They must comprise regulations on debt recovery measures.

      Best regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

    LEGAL BASIS OF THIS SITUATION
    • Article 6 of Circular 11/2021/TT-NHNN Download
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