Regulations on limits, prudential ratio of People's Credit Funds

The State Bank of Vietnam issued Circular 32/2015/TT-NHNN promulgating limits, prudential ratio of People's Credit Fund’s operations.

Accordingly, People's Credit Funds are not allowed to grant unsecured loans, loans with preferential terms (preferential interest rates, approving procedures, debt obligations and debt recovery treatments) to subjects, like: members of board of directors, supervisory board, directors, deputy directors, chief accountants of People's Credit Funds; audit organizations, auditors that are auditing and inspecting at People's Credit Funds; enterprise having one of prescribed subjects owning more than 10% charter capital of this enterprise; loan approval estimators of People's Credit Funds.

Circular 32/2015/TT-NHNN replaces Decision 1328/2005/QD-NHNN of SBV.

Reported by Thanh Hong – Translated by Ngoc Huynh