Business

New special control regulations for credit institutions to take effect

New special control regulations for credit institutions to take effect next month

The State Bank of Vietnam (SBV)’s Governor or the directors of SBV’s municipal and provincial branches will be able to lace credit institutions under the SBV’s special control, starting from next month.
New special control regulations for credit institutions to take effect next month ảnh 1Illustrative image (Source: VNA)

Hanoi (VNS/VNA) - The State Bank of Vietnam (SBV)’s Governor or the directors of SBV’s municipal and provincial branches will be able to lace credit institutions under the SBV’s special control, starting from next month.

Under Circular 11/2019/ TT-NHNN on special control for credit institutions, which will take effect of October 1 this year, credit institutions (excluding policy banks) that fall into one of seven cases will be placed under the SBV’s special control.

First are credit institutions facing a shortage of highly liquid assets at 20 percent or more at the time of solvency ratio calculation which causes them to fail to maintain the solvency ratio for three consecutive months.

Additionally, credit institutions that cannot pay their debt obligation within one month of the date of maturity and have a ratio of bad debts out of the total outstanding loans at 10 percent or more.

Third, if the Tier I capital adequacy ratio of credit institutions is lower than 4 percent for six consecutive months while the ratio of the bad debts to the total outstanding loans is 10 percent or more after six consecutive months, the institution will be subject to the SBV's special control.

Next, the special control will apply for institutions that cannot repay their debt obligations within three months from when the debt obligation is due.

If the accumulated losses of a credit institution are greater than 50 percent of their charter capital and reserve funds recorded in the latest audited financial statements, they will be subject as well.

If the capital adequacy ratio is not maintained for 12 consecutive months or the capital adequacy ratio is lower than 4 percent for six consecutive months, the SBV will institute special control.

Finally, credit institutions will be subject to the control if they are given a weak ranking for two consecutive years according to the SBV’s regulations.

Notably, the circular also requires that when credit institutions fall into the first four cases, they must report to the SBV on the situation, causes and any measures they have taken or proposed to overcome the shortcomings./.
VNA
#State Bank of Vietnam #special control #credit institutions #credit institutions #outstanding loans #financial statements #capital adequacy ratio #Vietnam #VietnamPlus #Viet Nam News
Follow VietnamPlus

Related News

Draft circular on gold business licensing released

Draft circular on gold business licensing released

The State Bank of Vietnam (SBV) has publicised a draft circular that would adjust existing regulations managing gold trading, Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper reported.

See more

Workers produce leather shoes for export at Lefaso Tra Vinh Investment and Production Joint Stock Company in Tra Cu commune, Vinh Long province. (Photo: VNA)

Vietnamese exporters pivot to ease pressure from US tariffs

Pressure from the new US tariff policy is prompting Vietnamese exporters to reassess their strategies. Rather than pursuing volume-driven growth, many are shifting towards higher-value orders, tighter cost control, greater productivity and a more balanced allocation of markets to reduce reliance on a single destination.

A worker handles and stacks goods. Nearly 138,100 businesses were newly founded from January to August, up 7.7% over the same period last year, while more than 40,800 businesses completed dissolution procedures, a jump of 125.5%. (Photo: VNA)

Firm entry and exits point to continued restructuring pressure

Updates from the National Statistics Office last week showed that nearly 138,100 businesses were newly founded from January to August, up 7.7% over the same period last year, while more than 40,800 businesses completed dissolution procedures, a jump of 125.5%.

A Vietnamese business introduces durian cakes to Chinese visitors at the 22nd China-ASEAN Expo (CAEXPO) in 2025. (Photo: VNA)

Vietnam steps up trade, investment promotion at China-ASEAN Expo

According to the CAEXPO Secretariat, Vietnam will once again lease an entire exhibition area of about 3,000sq.m, featuring 170 booths, making it one of the ASEAN countries with the largest exhibition spaces at this year’s event. Nearly 100 Vietnamese businesses have confirmed their participation, including major brands such as Trung Nguyen Group, TH Group, Saigon Coffee and Biti’s.

An overview of the VIFC's Executive Council meeting on September 7 (Photo: VNA)

Six groups of products, services proposed at Vietnam International Financial Centre

Deputy Minister of Finance Nguyen Thi Bich Ngoc said the products and services include investment funds and asset management, asset-backed digital assets, international carbon credits, commodity trading and derivatives infrastructure linked to trade and supply-chain financing, financial technology, and bonds issued at the centre. As these groups are at different stages of readiness, they will be rolled out in phases rather than simultaneously.

The meeting between the Quang Ninh delegation and Siemens Mobility (Photo published by VNA)

Quang Ninh seeks cooperation, investment opportunities in Germany

A Quang Ninh official praised the collaboration between Siemens Mobility and VinSpeed in developing the Hanoi–Quang Ninh high-speed railway and expressed his hope that the project will pave the way for future cooperation between Siemens Mobility and Quang Ninh in modern railway development and workforce training.

At the 10th intersessional meeting of UNCITRAL Working Group III in Ninh Binh province on September 7, 2026. (Photo: VNA)

Vietnam hosts UNCITRAL Working Group III intersessional meeting for first time

By hosting the 10th UNCITRAL Working Group III intersessional meeting, Vietnam wishes to continue playing an active and proactive role in UNCITRAL in general and Working Group III in particular, working alongside the international community to strengthen cooperation, share experience and contribute to the development of the international legal framework.

An Asian customer with a Vietnamese coconut product served with straws (Photo: VNA)

Vietnam’s agricultural exports: Shifting from volume to value

Vietnam has about 1.2 million hectares of fruit-growing areas, producing around 13 million tonnes a year. Its fruits are exported to more than 60 countries, including major markets such as the US, the EU, Japan, the Republic of Korea and China. The country is also among the world’s leading exporters of rice, cashew nuts, pepper and coffee, with its products reaching more than 150 countries, including markets with stringent standards.

A modern production line at Hana Micron Vina Co. Ltd., a wholly invested by the Republic of Korea, in Van Trung Industrial Park in Bac Ninh province (Photo: VNA)

Northern Vietnam attracts 80.5% of new manufacturing FDI in first half

John Campbell, Director and Head of Industrial Services at Savills Vietnam, said investment in electronics and semiconductors continued to concentrate in northern localities, which have developed relatively complete manufacturing ecosystems encompassing industrial infrastructure, technical labour and supplier networks.

At the 2025 K–Vietnam Pop-up Festa in Dalat (K-Market Vietnam 2025) held in the central province of Lam Dong on November 8, 2025. The event features a series of cultural and trade exchange activities between Vietnam and the RoK, with more than 100 Lam Dong and Korean enterprises showcasing typical products from both sides. (Photo: VNA)

Vietnam, RoK seek to expand trade cooperation

The Ministry of Industry and Trade’s Department of Foreign Markets said Korean companies showed strong interest in Vietnam International Sourcing (VIS 2026), covering food, logistics, digital technology, mechanics, shipbuilding, seafood and distribution.

According to the Vietnam Coffee Cocoa Association (Vicofa), Vietnam exported nearly 1.7 million tonnes of coffee in the first eight months of 2026, earning more than 6 billion USD. (Photo: VNA)

Vietnamese coffee exports poised for strong finish toward year-end

According to the Vietnam Coffee Cocoa Association (Vicofa), Vietnam exported nearly 1.7 million tonnes of coffee in the first eight months, earning more than 6 billion USD. Export volume rose by over 10% year on year, while export value fell by 11.2% due to lower export prices.

Ciputra is one of the landmark projects representing the presence of Indonesian investment in Vietnam since the first wave of FDI. (Photo: bietthu-ciputra.vn)

Foreign capital seeks stronger foothold in Vietnam through M&A

Foreign investors carried out 1,815 capital contribution and share purchase transactions in Vietnam in the first seven months of 2026, with total capital exceeding 6.5 billion USD. While the number of transactions fell 8.4% year-on-year, their value rose 61.6%.