From June 1, credit institutions and foreign bank branches must classify non-performing loans (NPL) by their time past due to respond to actual conditions of their systems.
From June 1, credit institutions and foreign bank branches must classify non-performing loans (NPL) by their time past due to respond to actual conditions of their systems.
Under SBV Circular No. 02/2013/TT-NHNN of January 21, prescribing the classification of assets, percentage and method of setting up risk provisions, and use of these provisions in operation of credit institutions and foreign bank branches, debts of these institutions and branches must be classified according to qualitative and quantitative methods at least once a quarter.
If having any NPL or off-sheet liabilities classified into groups subject too high risks, credit institutions and foreign bank branches are required to put them back in groups subject to more reasonable risks.
These institutions and branches also have to develop their internal credit rating systems to rate their clients periodically or as needed and serve as a basis for consideration and approval of loans to be granted, management of credit quality and formulation of their risk provision policies.
(Source: Vietnamlaw)
