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| Clients conduct transactions at VietinBank’s Bac Ninh branch__Photo: Tran Viet/VNA |
The State Bank of Vietnam (SBV) last month issued a landmark circular providing prudential ratios and limits in the operation of credit institutions and foreign bank branches in Vietnam.
Taking effect in February next year, Circular No. 36/2014/TT-NHNN dated November 20, 2014, will replace a series of documents that currently serve as legal instruments for the management and supervision of the financial market, such as Decision No. 03/2008/QD-NHNN on provision of loans for securities investment and trading and Circular No. 13/2010/TT-NHNN on prudential ratios in the operation of credit institutions.
With many new provisions, Circular 36 is regarded by the SBV as a step forward in raising safety standards and transparency in the operation of credit institutions, restricting cross ownership and speeding up the restructuring of the banking system...
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