The State Bank of Vietnam drafts a new Circular regulating safety ratios in microfinance operations.

The State Bank of Vietnam (SBV) is seeking comments on a draft Circular regulating restrictions and safety ratios in the operations of microfinance institutions, replacing Circular No. 33/2015/TT-NHNN. The draft is being developed in the context of the Law on Credit Institutions (amended in 2024) and Decree 26/2025/ND-CP on the organizational structure of the SBV, which have just been issued. The draft aims to improve the legal framework, enhance risk management capacity and safety of the microfinance system in Vietnam.

According to the drafting agency, the draft Circular inherits the still relevant provisions of Circular 33/2015, while adding many new contents to be consistent with the Law on Credit Institutions 2024 and regulations applicable to all types of credit institutions. One of the notable points is that the draft adds regulations on information technology systems, requiring microfinance institutions to have an information technology infrastructure that meets the requirements of storage, monitoring, risk management and periodic reporting to the State Bank.

In addition, the Draft also provides more detailed regulations on the process of issuing and reviewing internal regulations, including the management of minimum capital adequacy ratios, liquidity management and credit granting to credit appraisers and approvers. Microfinance institutions must periodically review and update internal regulations at least once a year, and submit them to the State Bank within 10 days of issuance or amendment.

Draft Circular regulating restrictions and safety ratios in the operations of microfinance institutions

One of the key new points of the Draft is to add provisions on the actual value of charter capital and measures to handle when charter capital falls below the legal capital level. Accordingly, microfinance institutions must self-assess the actual value of charter capital (including charter capital, accumulated undistributed profits, minus accumulated losses) and periodically report to the State Bank. If the actual capital falls below the legal level, the unit must develop a remedial plan within 30 days, and the State Bank has the right to apply inspection and examination measures, even early intervention or restructuring according to the law.

Another new content is about management, which is to clarify the functions between units at the State Bank. Accordingly, the Department of Credit Institution Management and Supervision will be the focal point to receive reports, monitor the implementation of safety ratios and submit to the Governor for decision on handling measures when charter capital decreases; while the State Bank Inspectorate is responsible for inspecting, checking, handling violations and providing information to the Department for synthesis and reporting.

The Draft maintains the regulation on the minimum capital adequacy ratio of microfinance institutions at 10%. The components of equity capital and the method of determining "Risk" assets are specified in detail in three attached appendices, and are built on the basis of consistency with the determination method in Circular 22/2019/TT-NHNN. The minimum maintenance solvency ratio of 20%, the calculation formula and the method of determining the components are specified in Appendix III of the Draft; at the same time, it supplements the concept and how to handle cases where the institution is at risk of insolvency or actually insolvent.

Source: https://thoibaonganhang.vn/nhnn-du-thao-thong-tu-moi-quy-dinh-ty-le-bao-dam-an-toan-trong-hoat-dong-to-chuc-tai-chinh-vi-mo-172984.html