Bank capital adequacy rules tighten
The State Bank of Vietnam on Aug 11
tightened the cap on the ratio that commercial banks and to the
financial institutions may maintain between short-term deposits and
medium- to long-term outstanding loans, in a new move to increase the
security of the banking system.
The State Bank of Vietnam on Aug 11
tightened the cap on the ratio that commercial banks and to the
financial institutions may maintain between short-term deposits and
medium- to long-term outstanding loans, in a new move to increase the
security of the banking system.
Under Circular No 15/2009-TT-NHNN, commercial banks’ medium- and long-term outstanding loans must not exceed 30 percent of short-term deposits, down from the previous 40 percent. Short-term deposits include non-term deposits and valuable papers with terms of less than 12 months.
The figure for credit unions is lowered from 30 percent to 20 percent.
Credit institutions with inadequate short-term deposits are required to suspend new lending and comply with the new ratio by January 1, 2010.
The newly-issued circular, which replaces one issued in 2005, also provides that the credit institutions must have modern information systems in place to properly manage its capital lending programmes./.
Under Circular No 15/2009-TT-NHNN, commercial banks’ medium- and long-term outstanding loans must not exceed 30 percent of short-term deposits, down from the previous 40 percent. Short-term deposits include non-term deposits and valuable papers with terms of less than 12 months.
The figure for credit unions is lowered from 30 percent to 20 percent.
Credit institutions with inadequate short-term deposits are required to suspend new lending and comply with the new ratio by January 1, 2010.
The newly-issued circular, which replaces one issued in 2005, also provides that the credit institutions must have modern information systems in place to properly manage its capital lending programmes./.
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