THE STATE BANK OF VIETNAM
---------------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
---------------
No. 13/2010/TT-NHNN
Hanoi, May 20, 2010
 
 
CIRCULAR
STIPULATING PRUDENTIAL RATIOS IN OPERATIONS OF CREDIT INSTITUTIONS
-----------------------
THE STATE BANK OF VIETNAM
 
Circular No. 13/2010/TT-NHNN of May 20,2010, stipulating prudential ratios in operations of credit institutions
Pursuant to the 1997 Law on the State Bank of Vietnam and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the 1997 Law on Credit Institutions and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Decree No. 96/ 2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
The State Bank of Vietnam (below referred to as the State Bank) stipulates prudential ratios in operations of credit institutions as follows:
 
Chapter I GENERAL PROVISIONS
Article 1. Subjects and scope of application
1. Credit institutions operating in Vietnam (below referred to as credit institutions for short), excluding the Social Policy Bank, the Vietnam Development Bank and grassroots people's credit funds, shall constantly maintain prudential ratios stipulated in this Circular in their operations.
2. Prudential ratios stipulated in this Circular include:
a/ Capital adequacy ratio;
b/ Credit limits;
c/ Solvency ratio;
d/ Limits on capital contribution and share purchase;
e/ Ratio of granted credit to mobilized capital.
3. On the basis of results of supervision, inspection and examination of credit institutions by the Banking Inspection and Supervision Agency, the State Bank may request credit institutions to maintain prudential ratios higher than the levels stipulated in this Circular.
Article 2. Interpretation of terms
In this Circular, the terms below are construed as follows:
1. Receivables include assets formed from deposits, loans, advances, overdrafts, financial leasing amounts, factoring, discounts and re-discounts of negotiable instruments and other valuable papers, and securities investments.
2. Client means an organization or individual having credit relations with a credit institution. A single client is an organization or individual having credit relations with a credit institution.
Click Download to see full text