As explained by the State Bank (SBV), in order to ensure the minimum capital adequacy ratio of financial companies is closer to international standards and practices on the basis of maintaining a separate capital adequacy ratio. odd and consolidated capital adequacy ratio; enhance the risk tolerance of non-bank credit institutions in the face of market shocks; request the non-bank credit institution to restructure its investment portfolio; adjusting the risk coefficient for the risk field, the SBV will amend the minimum capital adequacy ratio and the risk coefficient in the direction of an increase to ensure the control and restriction of credit in potentially risky areas.
Specifically, the capital adequacy ratio is determined by equity capital compared to total risky assets and inherits the content of Circular No. 36. Modify the risk coefficient in the direction of Group of assets with risk coefficient 50% of the claim must be secured entirely by housing (including future houses), land use rights, construction works associated with the borrower's land use rights and meets one of the following conditions:
It is a loan to serve business activities under the State Bank's regulations on lending activities of credit institutions and foreign bank branches;
With personal loan:
+ For customers to buy social houses or buy houses under the Government's support programs and projects;
+ For a customer to buy a house whose loan agreement/loan amount under the credit contract is less than VND 1.5 billion. Each customer applies this risk factor to only one loan.
For accounts receivable from individuals serving their daily life demands, the total amount of loan agreements/loan levels of those customers' credit contracts is VND 4 billion or more (after deducting right amounts) claims of customers that have applied a risk factor of 50%) are listed as assets with a risk factor of 120% (effective from January 1, 2021 to the end of December 31, 2021) and 150% (effective from 1 January 2022).
The Circular also regulates in order to limit the risk of focusing credit on a customer or related persons leading to risk concentration; avoid the risk spread effects of some objects in the relevant customer group; prescribe conditions and limits on credit extension for high-risk potential fields (granting credits for investment and trading of stocks and corporate bonds). Accordingly, non-bank credit institutions must base on their own equity to identify restrictions and limits on credit extension and non-bank credit institutions may not grant credits to customers for investment and trading of corporate bonds. The enterprise is a subsidiary of that non-bank credit institution itself.
In addition, the Circular also stipulates limits on capital contribution, share purchase with financial companies in the direction of amendments in accordance with the 2010 Law on Credit Institutions, diversifying investment activities but ensuring efficiency, maintain equity capital at a level that ensures safety ratios; limiting scattered investment, leading to uncontrolled risks of non-bank credit institutions. Accordingly, the Circular stipulates the limit of capital contribution, share purchase in compliance with the provisions on capital contribution, share purchase in accordance with Articles 110, 129, and 135 of the Law on Credit Institutions.
The draft inheritance circular stipulated in Circular No. 36, non-bank credit institutions must regularly maintain 6 limits and prudential ratios in operations, including the minimum capital adequacy ratio; Restrictions and limits on credit extension; Solvency ratio; The maximum ratio of short-term funds used for medium and long-term loans; Ratio of buying and investing Government bonds and Government-guaranteed bonds; Limits on capital contribution, share purchase.
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