The Circular prescribes the amounts that a credit institution must set aside for a general provision is 0.75% of total balance of debts from class 1 to class 4, except the followings:
- Deposits made at credit institutions, foreign bank branches in accordance with law and at overseas credit institutions.
- Loans, forwards of securities between credit institutions and foreign bank branches in Vietnam.
- Purchases of promissory notes, treasury bills, certificates of deposit or bonds issued by credit institutions and foreign bank branches onshore. (This is a supplement to the existing regulation)
- Repos of government bonds, subject to point I of clause 1 of Article 1 in the Circular No. 11. (This is a supplement to the existing regulation).
The Circular No. 11/2021/TT-NHNN is entering into force as of October 1, 2021, replacing the Circular No. 02/2013/TT-NHNN dated January 21, 2013 and the Circular No. 09/2014/TT-NHNN dated March 18, 2014.
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