The SBV is collecting comments on a draft circular to stipulate prudential limits and ratios in operations of non-bank credit institutions.
According to the provisions of the Law on Credit Institutions, non-bank credit institutions are the type of credit institutions performing one or several banking activities, except for the activities of receiving individuals’ deposits and providing payment services via accounts of customer. Non-bank credit institutions include financial companies, financial leasing companies and other non-bank credit institutions.
Under the provisions of the new Draft Circular, the limits on the prudential ratios of non-bank credit institutions and financial companies must now have internal regulations on credit extension and loan management. ensure that the loan is used for the right purpose. In particular, there must be criteria to identify a customer, a customer and a related person; credit policy for a customer, a customer and a related person; stipulating the principle of decentralization, authorization of credit decision-making and approval, rescheduling of debt repayment term for a customer, a customer and related persons …
Besides, there must be a regulation on the dispersion of risks in credit activities; methods of monitoring, managing, approving and deciding on credit extension for a customer, a customer and a related person at 1% or more of the own capital of a non-bank credit institution or more.