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THE
STATE BANK OF VIETNAM
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.
493/2005/QD-NHNN
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Hanoi,
April 22, 2005
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DECISION
ON THE ISSUANCE OF REGULATION ON THE DEBTS CLASSIFICATION,
PROVISIONING AND USE OF PROVISIONS AGAINST CREDIT RISKS IN THE BANKING ACTIVITY
OF CREDIT INSTITUTIONS
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State
Bank No. 01/1997/QH10 dated 12 December 1997, the Law on the amendment,
supplement of several Articles of the Law on the State Bank No. 10/2003/QH11
dated 17 June 2003;
- Pursuant to the Law on the Credit Institutions No. 02/1997/QH10 dated 12
December 1997; the Law on the amendment, supplement of several Articles of the
Law on the Credit Institutions No. 20/2004/QH11 dated 15 June 2004;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government
providing for functions, assignments, authorities and organizational structure
of the State Bank of Vietnam;
- In agreement with the Minister of Finance at the Official Dispatch No. 4280
TC/TCNH dated 12 April 2005 of the Ministry of Finance;
Upon the proposal of the
Director of Banks and Non-Bank Credit institution Department,
DECIDES:
Article 1.
To issue in conjunction with this Decision the Regulation
on the debts classification, the provisioning and use of provisions against
credit risks in the banking activity of Credit Institutions.
Article 2.
This Decision shall be effective after 15 days since its
publication in the Official Gazette. Provisions on the classification of
assets, the provisioning and use of provisions to deal with risks in the
banking activities of credit institutions stated in the following documents
shall cease their effectiveness:
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2. The Official Dispatch No.
354/CV-CNH dated 10 July 2002 of the Governor of the State Bank on the
classification and provisioning upon the carrying over of overdue debts under
the Decision No. 688/2002/QD-NHNN of the Governor of the State Bank.
Article 3.
The Director of the Administration Department,
the Director of the Banks and non-bank credit institutions Department, Heads of
units in the State Bank, General Managers of the State Bank branches in
provinces, cities under the central Governments management, Chairman of the
Board of Directors, General Directors (Directors) of credit institutions shall
be responsible for the implementation of this Decision.
THE
GOVERNOR OF THE STATE BANK
Le Duc Thuy
REGULATION
ON THE DEBTS CLASSIFICATION, THE PROVISIONING AND USE OF
PROVISIONS AGAINST CREDIT RISKS IN THE BANKING ACTIVITIES OF CREDIT
INSTITUTIONS
(issued in conjunction with the Decision No. 493/2005/QD-NHNN dated 22 April
2005 of the Governor of the State Bank)
Chapter 1
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Article 1.
1.
Credit institutions operating in Vietnam (hereinafter referred to as credit
institution), except for the Bank for Social Policy, shall be obliged to carry
out the classification of debts, the provisioning and use of provisions to deal
with credit risks in the banking activities of credit institutions.
In case where a foreign bank
branch in Vietnam wishes to carry out the debts classification, provisioning
and use of provisions to deal with credit risks in accordance with provisions
of the foreign bank, the foreign bank branch must submit to the Governor of the
State Bank the foreign banks policy of provisioning for his consideration and
decision. The foreign bank branch shall only be permitted to perform the debts
classification and use of provisions to deal with credit risks in accordance
with provisions of the Head office of the foreign bank after obtaining the written
approval from the State Bank.
2. The provisioning and use of
provisions for the fall of inventory prices, the fall of securities prices, and
financial provision Fund shall be carried out in compliance with provisions of
applicable laws on the finance regime applicable to credit institutions.
Article 2.
In this
Regulation, following terms shall be construed as follows:
1. Credit risks in the banking
activities of credit institutions (hereinafter referred to as risks) are
potential losses that may arise in the banking activities of the credit
institutions due to the failure of their customers to perform or their not
being able to perform their obligations in accordance with their commitments.
2. Risk provisions are an amount
to be made available to provide for potential losses that may arise due to
failure of credit institutions customers to perform their committed
obligations. Risk provisions are determined by outstanding loan principals and
charged to the operational expenditure of credit institutions. Risk provisions
consist of specific provisions and general provisions.
Specific provisions are an
amount to be made available on the basis of the classification of specific
debts which are stipulated in Article 6 or Article 7 of this Regulation to
provide against potential losses that may arise.
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3. Use of provisions is an act
by which a credit institution uses the risk provisions to compensate for debts,
which have been lost.
4. Debts include:
a. Loans, advances, overdrafts
and financial leases;
b. Discounts, rediscounts of
commercial papers and other valuable papers;
c. Factoring amounts:
d. Other forms of credit
facilities.
5. Overdue debt is a debt where
a part or the entire of its principal and /or interest has become overdue.
6. Bad debts (NPL) are debts,
which have been classified as those in Groups 3, 4 and 5 stipulated in Article
6 or Article 7 of this Regulation. The ratio of bad debts to the total
outstanding debt is used to assess the credit quality of credit institutions.
7. Debts with restructured
repayment term are debts, the repayment term of which a credit institution
accepts to restructure or reschedule for customers because the credit
institution assesses that the capability of customers to duly pay the
principals or interests as stated in the credit contract deteriorates, but
there are sufficient grounds for the credit institution to assess that
customers are capable to fully pay the principals and interests under the
restructured repayment term.
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Article 3.
1. Each
quarter at least, within the first 15 working days of the following month of
the quarter, credit institutions shall carry out the classification of
principal debts and set up risk provisions for the period ending by the last
day of the previous quarter (month).
For the IV quarter, credit
institutions shall, within the first 15 working days of December, perform the
debts classification and set up risk provisions for the period ending by 30
November.
2. In respect of bad debts
(NPL), credit institutions must carry out the debts classification, assessment
of repayment capacity of customers on the monthly basis for the sake of credit
quality and risk management.
3. For loans made by the funds,
which are financed, entrusted by the third party and the third party undertakes
to take full responsibility for dealing with the risks when they arise and for
loans co-financed by other credit institutions where the credit institution is
not subject to any risk, it shall not set up risk provisions, but it shall be
obliged to carry out the debts classification in accordance with provisions in
Article 6 or Article 7 of this Regulation to correctly assess the financial
status, repayment capacity of customers for the credit risks management.
4. Credit institutions must
classify guarantee amounts, lending commitments and payment acceptances to the
Group 1 as stipulated in Article 6 or Article 7 of this Regulation for the
management, supervision of the financial status, capability to perform
obligations of their customers and making the general provisions.
Chapter II
DETAILED PROVISIONS
Section 1.
Classification of debts and setting up of general provisions
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1. Credit
institutions shall, within a maximum period of three (03) years from the
effective date of this Regulation, design an internal credit ranking system to
support the debts classification, the credit quality management in line with
their scope of operation, their actual situation. The internal credit ranking
system must, at the minimum, consist of:
- Legal grounds relating to the
establishment and business lines of customers;
- Consolidated economic norms
relating to the business performance, financial status, assets, ability to
perform committed obligations;
- Prestige to credit
institutions with which they have had business relations;
- Criteria for assessing
customers in details, which must be specific and systematic (assessing industrial
and location factors) and on that basis to carry out specific classification of
customers.
2. The provisions in paragraph 1
of this Article shall not be compulsory for rural joint -stock commercial banks
and local peoples credit funds.
Article 5.
Credit
institutions shall carry out the debts classification and specific provisioning
in accordance with provisions in Article 6 or Article 7 of this Regulation.
Article 6.
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a. Group 1 (standard debts)
includes:
- Current debts that credit
institutions assess as fully and timely recoverable, both principals and
interests;
- Other debts which are
classified to the Group 1 in accordance with provisions in Paragraph 2, this
Article.
b. Group 2 (debts, which need
special attention) includes:
- Debts which are overdue for a
period of less than 90 days
-Debts with restructured
repayment term, which are still current under the restructured repayment
period;
- Other debts which are
classified to Group 2 in accordance with provisions in Paragraph 3 and
Paragraph 4 of this Article.
c. Group 3 (sub-standard debts)
includes:
- Debts which are over due for a
period of 90 to 180 days;
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- Other debts which are
classified to Group 3 in accordance with provisions in Paragraph 3 and 4 of
this Article.
d. Group 4 (doubtful debts)
includes:
- Debts, which are overdue for a
period of 181 to 360 days;
- Debts with restructured
repayment term, which are overdue for a period of 90 to 180 days under the
restructured repayment period;
- Other debts, which are
classified into group 4 in accordance with provisions in Paragraph 3 and 4 of
this Article.
dd. Group 5 (potentially
irrecoverable debts) includes:
- Debts, which are overdue for a
period of more than 360 days;
- Frozen debts pending
settlement by the Government
- Debts with restructured
repayment term, which are overdue for a period of more than 180 days under the
restructured repayment period;
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2. In case where customers have
made full repayment of the principal and interests under the restructured
repayment period for at least a year in respect of long and medium-term debts
and 3 months in respect of short-term debts and are assessed by credit
institutions as being capable to pay principals and interests fully and timely
in accordance with restructured repayment term, credit institutions may
classify those debts to Group 1.
3. In case where a customer has
more than one debt from a credit institution, if any of his debts is classified
to a more risky group, the credit institution shall be obliged to classify the
remaining debts of that customer to a more risky group corresponding to the
respective risk level.
4. In case of debts (including
current debts and debts with restructured repayment term, which are current
under the restructured repayment term) where a credit institution has
sufficient grounds to assess that the repayment capacity of customers
deteriorates, the credit institution shall take the initiative to decide on the
classification of those debts to a more risky group corresponding to their
respective risk level.
5. The specific provisioning
ratio for groups of debt as provided for in Paragraph 1 of this Article shall
be as follows:
a. Group 1: 0%;
b. Group 2: 5%
c. Group 3: 20%
d. Group 4: 50%
dd. Group 5: 100%. For frozen
debts pending the settlement by the Government, the specific provisions shall
be made depending on the financial capacity of the credit institution.
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Credit
institutions, which satisfy full capacity and conditions for debt classification
by the qualitative method, shall design the policy on debt classification and
risk provisioning as follows:
1. Credit institutions shall,
based on the internal credit ranking system, submit to the State Bank their
risk provisions policy and only be permitted to implement this policy after
obtaining the written acceptance from the State Bank.
2. Conditions for giving the
acceptance of the risk provisions policy by the State Bank:
a. The internal credit ranking
system has been applied on a test basis for at least 1 year;
b. The result of credit ranking
has been approved by the Board of Directors;
c. The internal credit ranking
system is in line with the business activity, customers, the risk nature of
debts of the credit institution;
d. The policy for credit risk
management, the model of credit risk supervision, the method of credit risk
determination and valuation has run efficiently and include the assessment of
the customers repayment capacity, credit contracts, security assets, the debt
recoverability and debt management of the credit institution;
dd. There is clear distinction
between responsibilities, authorities of the Board of Directors and General
Director in approval, performance and performance examination in respect of the
internal credit ranking system and provisions policy of the credit institution
and the independence of the risk management unit;
e. The information system must
run efficiently for making decisions, the management and control of the
business activity of the credit institution and in line with the internal
credit ranking system and the debts classification.
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a. A written document of the
Chairman of the Board of Director requesting the State Bank for acceptance of
the risk provisions policy which must prove that the internal credit ranking
system and the provisions policy of the credit institution have fully satisfied
conditions as stipulated in Paragraph 2 of this Article.
b. A copy of the internal credit
ranking system and risk provisions policy and the draft documents that guide
the performance of debts classification and setting up of risk provisions of
the credit institution.
4. Within a period of 30 days
since the full receipt of file in accordance with provisions in Paragraph 3 of
this Article, the State Bank shall issue the written acceptance of the risk
provisions policy of the credit institution. In case of non-acceptance, the
State Bank shall request, in writing, the credit institution for correction in
accordance with applicable provisions.
5. Every year, the credit
institution shall reassess the internal credit ranking system and the risk
provisions policy in line with the actual situation and provisions of
applicable laws. The amendment, adjustment of the risk provisions policy of the
credit institution must be accepted in writing by the State Bank.
6. Credit institutions which
have the risk provisions policy accepted by the State Bank as provided for in
Paragraph 1, this Article shall carry out the debts classification and
provisioning specifically as follows:
6.1. Debts classification:
a. Group 1 (standard debts)
includes: debts that credit institutions assess as fully and timely
recoverable, both principals and interests;
b. Group 2 (Debts which need
special attention) includes: Debts which credit institutions assess as fully
recoverable, both principals and interests, but there are signs that customers
payment capability is deteriorating.
c. Group 3 (sub-standard debts)
includes: Debts which credit institutions assess as not recoverable in due
course, both principals and interests. A part of principals and interests of
these debts are assessed to be likely impaired.
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dd. Group 5 (potentially
irrecoverable debts) includes: Debts that credit institutions assess as
irrecoverable and lost.
6.2. The specific provisioning
ratio for debt groups stipulated in Paragraph 6.1 of this Article shall be as
follows:
a. Group 1: 0%;
b. Group 2: 5%
c. Group 3: 20%
d. Group 4: 50%
dd. Group 5: 100%
Article 8.
1. Amount
of specific provisions required to set up shall be calculated under the
following formula:
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Of which:
R: amount of specific
provisions required to set up
A: Value of the debt
C: Value of security assets
r: ratio of specific
provisioning
2. The value of security assets
(C) is determined on the basis of the multiplication of the applicable ratio
stipulated in Paragraph 3 of this Article and:
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- The face value of Government Bonds,
Treasury Bills and all kinds of valuable papers of credit institutions;
- The market value of securities
of enterprises and other credit institutions;
- The value of security assets,
which are movable, immovable assets and other security assets stated in the
security contract, financial leasing contract.
3. The maximum ratio applicable
to determine the value of security assets is provided for as follows:
Types
of security assets
Maximum
ratio (%)
The balance of deposit
account, savings book in Vietnam Dong at the credit institution
100%
Treasury bills, gold, balance
of deposit account, savings book in foreign currency at the credit
institution
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Government Bonds:
- With the remaining term of
one year and less
- With the remaining term of 1
to 5 years
- With the remaining term of
more than 5 years
95%
85%
80%
Commercial papers, valuable
papers of other credit institutions
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Securities of other credit
institutions
70%
Securities of enterprises
65%
Immovable assets (including:
residence of inhabitants with valid documents and/or immovable assets tied to
the legal land use right)
50%
Other kinds of security assets
30%
4. For financial leases, leased assets
shall be considered as security assets
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Article 9.
1. Credit
institutions shall make the general provisioning and maintain a general
provisions equal to 0.75% of the total value of debts from Group 1 to Group 4
stipulated in Article 6 or Article 7 of this Regulation.
2. Within a maximum period of 5
years from the effective date of this Regulation, the credit institutions must
make full provisioning for the general provisions in accordance with provisions
in Paragraph 1 of this Article.
Section 3.
USE OF PROVISIONS
Article 10.
Credit
institutions shall be entitled to use provisions to deal with the credit risks
for debts in following cases:
1. Customers are organizations,
enterprises which are dissolved, go bankrupt in accordance with provisions of
applicable laws; individuals who die or are missing.
2. Debts classified to the Group
5 as stipulated in Article 6 and Article 7 of this Regulation. For frozen debts
pending settlement from the Government, the credit institution shall be
entitled to use provisions (if any) to deal with the credit risks.
Article 11.
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a. To use specific provisions
which are stipulated in Paragraph 1, Article 8 of this regulation to deal with
credit risks for that debt.
b. To dispose of the security assets
for debt recovery: The credit institution must promptly put on sale the
security assets according to the agreement with customers and in accordance
with provisions of applicable laws on debt recovery.
c. In case where the disposal of
asset is not sufficient to cover the credit risks of the debt, the general
provisions can be used for the full settlement
2. The use of provisions to
write off the credit risks by the credit institution is not a form of the debt
forgiveness for customer. The credit institution and related individuals shall
not be permitted to inform customer of the settlement of the credit risks in
any form.
3. After provisions have been
used to deal with the credit risks, the credit institution shall transfer the
accounting of the debts, the credit risk of which have been dealt with, from
the on-balance sheet accounts to the off-balance sheet accounts for continuous
following up and taking measures for the debt recovery.
4. After 5 years from the use of
provisions to deal with the credit risks, the credit institution shall be
entitled to release settled debts from the off-balance sheets accounts in
respect of cases stipulated in Paragraph 1 Article 10 of this Article. For the
State owned commercial banks, the release of those debts shall be only
performed upon the approval from the Ministry of Finance and the State Bank.
Article 12.
1. In
case where the provisions are not sufficient to deal with the entire credit
risks of debts to be dealt with, the credit institutions shall directly charge
the deficient amount to the operation expenses.
2. In case where the provisions,
which have been made, remain larger than that to be made, the credit
institution must return the excessive provisions in accordance with provisions
of applicable laws on finance regime applicable to credit institutions.
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1. Credit
institutions must set up a Risks Settlement Committee, which is headed by the
Chairman of the Board of Directors and consists of members, who are the Head of
Controllers Committee, the Chief of Accounting Division, the Chief of Credit
Division, and other members, which are decided upon by the Chairman of the
Board of Directors.
2. For Credit institutions,
which do not have the Board of Directors, Controllers Committee, the Risks
settlement Committee, shall be headed by the General Director (Director) and
other members shall be decided upon by the General Director (Director).
Article 14.
The
duties of the Risks Settlement Committee:
1. To review the debts
classification, setting up of provisions against credit risks, which have been
performed by the General Director (Director), for the current quarter.
2. To review the report on the
performance of the monitoring, the statement and recovery of debts that have
been written off.
3. To decide on the writing off
of credit risks in the current quarter and the plan of the debt recovery in the
next quarter (month) for the debts that have been dealt with, in which the time
and applicable measures for the debt recovery must be identified.
Article 15.
The file
that is used as basis for the risk settlement shall include:
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2. For cases, which are
stipulated in Paragraph 1, Article 11 of this Regulation, in addition to the
file stated in Paragraph 1 of this Article, following documents must be
available:
a. In respect of customers being
organizations, enterprises:
- A copy of Courts decision on
the bankruptcy or the decision on the dissolution of the competent State Agency
in accordance with provisions of applicable laws;
- A copy of the report on the
enforcement of the decision on bankruptcy, report on the completion of the
enforcement of the decision on the bankruptcy made by the enforcement agency;
written documents concerning the settlement of debts of the dissolved
organizations, enterprises.
b. In respect of customers being
individuals:
- A copy of Death Certificate,
Missing Certificate, which is granted by the competent agency.
Article 16.
All
amounts recovered from the debts the credit risks of which have been dealt with
by using the risk provisions shall be recorded in accordance with provisions of
applicable laws on finance regime applicable to credit institutions.
Section 4.
ACCOUNTING, REPORTING
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1.
General provisions and specific provisions shall be charged to the operation
expenditure of the credit institution.
2. General provisions and
specific provisions shall be charged to account Risk provisions. Credit
institutions shall perform the accounting for the provisioning, the use of
provisions and the recovered amounts after the provisions have been used to
deal with the credit risks in accordance with the stipulation of the State
Bank.
Article 18.
1. Credit
institutions shall perform the report on the debts classification, the
provisioning and use of provisions to deal with the credit risks in accordance
with the statistic reporting regime applicable to units of the State Bank and
credit institutions, issued by the State Bank
2. Prior to the 15th of the
second month of each quarter, credit institutions shall submit reports on the
debts classification, the provisioning and use of provisions to deal with
credit risks to the Ministry of Finance and Department of Tax in provinces,
cities where the credit institutions locate their head offices as follows:
a. Credit institutions that
carry out the debts classification in accordance with provisions in Article 6
of this Regulation shall prepare report on debts classification, provisioning
and use of provisions under forms No. 1A and 1B (attached)
b. Credit institutions that
carry out the debts classification in accordance with provisions in Article 7
of this Regulation shall prepare report on debts classification, provisioning
and use of provisions under forms No. 2A and 2B (attached)
Section 5.
ORGANIZATION OF THE IMPLEMENTATION
Article 19.
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2. The State owned commercial
banks shall assess the performance of specific provisioning and the capacity of
general provisioning to report to the State Bank and the Ministry of Finance
for consideration and decision on the basis of each specific case, but the
State owned commercial banks must, not in excess of 5 years at the maximum,
fully set up provisions under this Regulation.
Section 6.
EXAMINATION AND DEALING WITH VIOLATION
Article 20.
1. The
State Bank (State Bank Inspectorate) shall be responsible for cooperating with
the Ministry of Finance to examine the implementation of the debt
classification, provisioning and use of credit risk provisions in the banking
activity of credit institutions.
2. In case where a credit
institution violates this Regulation, it shall, depending on the nature and act
of violation, be dealt with as follows:
- To be subject to
administrative punishment
- To be subject to the increased
ratio of provisioning corresponding to the risk level of debts;
- To be subject to the
limitation of credit extension, the expansion of the operation network and
operation scope;
- To be suspended from the
operation in case of serious violation.
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IMPLEMENTING PROVISIONS
Article 21.
The
amendment, supplement and replace of this Regulation shall be decided upon by
the Governor of the State Bank in agreement with the Minister of Finance.
Form No. 1A
CREDIT
INSTITUTION
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
--------------------------------
REPORT
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Quarter
.......year 20
Unit:
million Dong
Norms
Value
of debts
Amount
of provisions
1. General provisions
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Group 1 includes:
- Current debts that credit
institutions assess as fully and timely recoverable, both principals and
interests;
- Amounts of guarantee,
lending commitments and payment acceptance under provisions in Paragraph 4,
Article 3 of this Regulation;
- Debts with restructured
repayment term, which are classified to Group 1 in accordance with provisions
in Paragraph 2, Article 6 of this Regulation.
Group 2 includes:
- Debts that are overdue for a
period of less than 90 days
- Debts with restructured
repayment term, which are still current under the restructured repayment term
and classified to group 2;
- Debts that are classified to
Group 2 in accordance with provisions in Paragraph 3, Article 6 of this
Regulation.
- Debts that are classified to
Group 2 in accordance with provisions in Paragraph 4, Article 6 of this
Regulation.
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- Debts that are overdue for a
period of 90 to 180 days;
- Debts with restructured
repayment term, which are overdue for a period of less than 90 days;
- Debts that are classified to
Group 3 in accordance with provisions in Paragraph 3, Article 6 of this
Regulation.
- Debts that are classified to
Group 3 in accordance with provisions in Paragraph 4, Article 6 of this
Regulation.
Group 4 includes:
- Debts that are overdue for a
period of 181 to 360 days;
- Debts with restructured
repayment term, which are overdue for a period of 90 to 180 days;
- Debts that are classified to
Group 4 in accordance with provisions in Paragraph 3, Article 6 of this
Regulation.
- Debts that are classified to
Group 4 in accordance with provisions in Paragraph 4, Article 6 of this
Regulation.
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- Debts that are overdue for a
period of more than 360 days;
- Frozen debts pending
settlement by the Government
- Debts with restructured
repayment term, which are overdue for a period of more than 180 days;
- Debts that are classified to
Group 5 in accordance with provisions in Paragraph 3, Article 6 of this
Regulation.
- Debts that are classified to
Group 5 in accordance with provisions in Paragraph 4, Article 6 of this
Regulation.
...............,
date...................
REPORT
DRAWER
(Clearly state full name)
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GENERAL
DIRECTOR (DIRECTOR) OF CI
(Clearly state full name)
Form No. 1B
CREDIT
INSTITUTION
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
--------------------------------
REPORT
ON THE USE OF PROVISIONS TO DEAL WITH CREDIT RISKS
IN THE BANKING ACTIVITY
Quarter........
year 200....
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Norms
Amount
I. Total amounts of
provisions that have been set up:
II. The use of provisions
to deal with credit risks in the quarter:
1. Customers who are organizations,
enterprises that are dissolved, go bankrupt in accordance with provisions of
applicable laws, individuals who die, are missing.
2. Debts in the Group 5:
- Debts that are overdue for a
period of more than 360 days;
- Frozen debts pending settlement
by the Government
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- Debts that are classified to
Group 5 in accordance with provisions in Paragraph 3, Article 6 of this
Regulation.
- Debts that are classified to
Group 5 in accordance with provisions in Paragraph 4, Article 6 of this
Regulation
III. Remaining provisions
after dealing with credit risks
IV. Recovered amount from
the debts that have been dealt with in the quarter:
V. Total amounts that have
been used for credit risk settlement but not yet been recovered by the
reporting date (accumulated):
...............,
date...................
REPORT
DRAWER
(Clearly state full name)
CONTROLLER
(Clearly state full name)
...
...
...
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Form No. 2A
CREDIT
INSTITUTION
--------------
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
--------------------------------
REPORT
ON THE DEBTS CLASSIFICATIONS, PROVISIONING TO DEAL
WITH CREDIT RISKS IN THE BANKING ACTIVITY
Quarter
........ year 200....
Unit:
million Dong
...
...
...
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Value
of debts
Provisioning
amounts
1. General provisions
2. Specific provisions:
Group 1 (standard debts)
includes:
- Debts that credit
institutions assess as timely fully recoverable, both principals and
interests.
- Amounts of guarantee,
lending commitments and payment acceptance in accordance with provisions in
Paragraph 4, Article 3 of this Regulation.
...
...
...
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- Debts that credit
institutions assess as fully and timely recoverable, both principals and
interests, but there are signs that customers repayment capacity is
deteriorating.
Group 3 (sub-standard
debts) includes:
- Debts which credit
institutions assess as not recoverable in due course, both principals and
interests. A part of principals and interests of these debts are assessed to
be likely impaired.
Group 4 (Doubtful debts)
includes:
- Debts that credit institutions
assess as highly impaired.
Group 5 (Debts that are
potentially irrecoverable) includes:
- Debts that credit
institutions assess as irrecoverable and lost.
...
...
...
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REPORT
DRAWER
(Clearly state full name)
CONTROLLER
(Clearly state full name)
GENERAL
DIRECTOR (DIRECTOR) OF CI
(Clearly state full name)
Form No. 2B
CREDIT
INSTITUTION
--------------
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
--------------------------------
REPORT
...
...
...
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Quarter
.......year 200....
Unit:
million Dong
Norms
Amount
I. Total amounts of
provisions that have been set up:
II. The use of provisions
to deal with credit risks in the quarter:
1. Customers who are
organizations, enterprises that are dissolved, go bankrupt in accordance with
provisions of applicable laws, individuals who die, are missing.
2. Debts of Group 5: Debts that
credit institutions assess as irrecoverable, lost.
III. Remaining provisions
after dealing with credit risks
...
...
...
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V. Total amounts that have
been used for credit risk settlement but not yet been recovered by the
reporting date (accumulated):
...............,
date...................
REPORT
DRAWER
(Clearly state full name)
CONTROLLER
(Clearly state full name)
GENERAL
DIRECTOR (DIRECTOR) OF CI
(Clearly state full name)