DRAFT CIRCULAR STIPULATING MINIMUM SAFETY LIMITS

AND RATIOS FOR TRANSACTIONS PERFORMED BY CREDIT

INSTITUTIONS AND BRANCHES OF FOREIGN BANKS
CONTENT AND EFFECTS

NG THANH H

OUTLINE
1. Executive Summary

2. Main substances of draft

3. Impact of draft on CAR
4. Conclusion

1. EXECUTIVE SUMMARY

2. MAIN SUBSTANCES OF DRAFT

a. Change the risk factor of receivables in real
estates business
150 % => 250 %

2. MAIN SUBSTANCES OF DRAFT

b. Change the maximum rate of short-term capital
for medium and long-term loans
Circular 36
Commercial Banks : 60 %
Branches of foreign banks : 60 %
Organization of non-bank credit :
200 %
Cooperative Bank : 60 %

Modified Draft Circular 36