According to the Circular, credit institutions and foreign bank branches must abide by the maximum percentage of short-term fund used for extension of mid-term and long-term loans according to the following schedule:
- From January 1, 2018 to end of December 31, 2018:
+ Banks and foreign bank branches: 45%;
+ Non-bank credit institutions: 90%.
- From January 1, 2019:
+ Banks and foreign bank branches: 40%;
+ Non-bank credit institutions: 90%.
In addition, the Circular provides regulations on the formula for calculating the ratio of outstanding loan debts to total mobilized deposit.
For more details, please see the Circular No.16/2018/TT-NHNN (entering in force on July 31, 2018).
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