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Decision 48/1999/qd-Nhnn5: On The Classification Of Assets "have" To Extract And Use The Reserve To Handle Risks In The Banking Operations Of Credit Institutions

Original Language Title: Quyết định 48/1999/QĐ-NHNN5: Về việc phân loại tài sản "Có" trích lập và sử dụng dự phòng để xử lý rủi ro trong hoạt động ngân hàng của tổ chức tín dụng

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The DECISION of the GOVERNOR of the STATE BANK On the classification of assets "Have" to extract and use the reserve to handle risks in the banking operations of credit institutions to the STATE BANK GOVERNOR-pursuant to the law on the State Bank no. 01/1997/QH10 on 12/12/1997 and the credit institutions Law No. 02/1997/QH10 on 12/12/1997;
-Based on Decree No. 15/CP DATED November 3, 1993 the Government duties, powers and responsibilities of the State management, ministerial bodies;
-At the suggestion of the Director of the banking and non-banking credit organization;
After the reunification with the Minister of finance, Decisions 1. Attached to this decision rules on the classification of the property "There", and is used as a backup to handle risks in the banking operations of credit institutions.
Article 2. This decision has the effect after 15 days from the date of signing.
Article 3. Heads of subdivisions the State Bank; Director of the State Bank branch, city; Chairman of the Board and ceo (Director) credit institutions responsible for the implementation of this decision.
REGULATIONS on the CLASSIFICATION of the property "THERE", and is USED AS a BACKUP to HANDLE RISKS in the BANKING OPERATIONS of CREDIT INSTITUTIONS (attached to decision No 48/1999/QD-NHNN5 August 02 1999 of State Bank Governor) i. GENERAL PROVISIONS article 1. Credit institutions operating in Vietnam to make the classification of assets "Have", and is used as a backup to handle risk in banking activities under this regulation.
Article 2.
1. Risk in banking operations of credit institutions (hereinafter referred to as the risk) is the probable losses in banking activities.
2. Prevention of risks is the reserves are on the cost accounting activity through the CITES establish contingency for the asset value "is" likely to be irrevocable.
Article 3. Within 25 working days of the first each year, credit institutions make the classification of property "Has" and CITES establish redundancy to handle risk. Private in 1999 made within 25 working days from the date of the decision to enact this provision in effect executed.
Article 4. All risk after it has been treated with reserve, credit institutions must open the window track and continue measures to recover the debt.
II. SPECIFIC RULES 1. The sort property "Have" article 5.
Credit institutions make the classification of assets "Are" banking activities according to the following rules: 1. The assets "Yes" of credit granting activities are grouped as follows: Group 1 consisting of:-less than the loan repayment term (including term of debt rescheduling);.
-The discount amount, discount negotiable and other short-term valuable papers not yet due for payment.
-Financial leasing payments not yet due to pay rent.
Group 2 consists of:-The secured loans overdue repayments under 180 days; These unsecured loans overdue repayment of under 90 days.
-The discount amount, discount negotiable and other short-term valuable papers were overdue payments in times of under 30 days.
-The amount of money paid in lieu of the person is guaranteed but not yet recovered in time of under 30 days.
-Financial leasing payments that lessees do not pay rent in time under 180 days.
Group 3 consists of:-The secured loan has been overdue repayments from 180 days to 360 days; These unsecured loans were overdue repayments from 90 days to 180 days.
-The discount amount, discount negotiable and other short-term valuable papers were overdue payment from 30 days to 90 days.
-The amount of money paid in lieu of the guarantee but has not recovered in time from 30 days to 90 days.
-Financial leasing payments that lessees do not pay rent from 180 days to 360 days.
Group 4 includes:-The secured loan has been overdue repayments from 360 days or more; These unsecured loans were overdue repayments from 180 days or more.
-The funds discount, discount negotiable and other short-term valuable papers were overdue payments from 90 days or more.
-The amount of money paid in lieu of the person is guaranteed but not yet recovered from the last 90 days or more.
-Financial leasing payments that lessees do not pay rent from 360 days or more.
2. The assets "Yes" of the payment services to the customer is assigned to a generic group.
2. Extract the backup setting article 6.
1. extract the backup rate applicable to the property "There":-for operating credit grade: Group 1:0% Group 2:20% Group 3:50% Group 4:100%.
-For payment services: 0.1%.
2. backup to extract the amount of credit institutions include:-the amount of reserve for credit granting activities is determined on the basis of the rate quote and reserve assets "Yes" each group of credit activity;
-Reserve amount for the payment services to the customer is determined on the basis of the rate quote and reserve assets "Yes" of the payment service for customers.
Article 7.
1. where the amount of redundancy in the first excerpt is not enough to handle the risk, credit institutions reported the Ministry of finance and the State Bank review.
2. the amount of the reserve after the processing of the remaining risk as of 31/12 each year, credit institutions must refund to reduce the amount of the reserve has been extracted.
Article 8. The case of credit institutions the State do to extract backup set as specified and this led to business results in that hole, the credit institution must establish corrective approach sent the Ministry of finance and the State Bank review.
3. Use the redundant article 9. Credit institutions using redundancy to handle risk in banking activities after you have recovered all revenues, request the Guarantor made its obligations, commercial mortgage, pledge assets (if any) and other measures prescribed by law to recover the debt.
Article 10. Risks occur in the following cases are reviewed, the handle: 1. Customer loans, guarantor loans, who released the trade votes and other short-term valuable papers, guarantor and trade votes, financial lease, the guarantee, the person to be served is the payment service the bankrupt organization , dissolved or failed obligation due to causes of force majeure such as natural disasters, fires, epidemics or by the State mechanism, policy changes.
2. Personal loans, loan guarantees, financial lease, payment services are dead, missing, courts sentenced to prison on 1 year or does not perform the obligation due to causes of force majeure such as natural disasters, fires, epidemics or by the State changing mechanism , policy.
Article 11.
1. Credit institutions must establish risk processing Council by the Chair of the Board (for the credit institution to have the Board) or Director General (Executive Director) as President and has forced members include Director-General (Executive Director) for credit institutions to have the Board , Head of supervisory board, Chief Accountant, Chief, head of credit checks, internal audit (the Chief of control); the other members by the President of the Council handle the risk decisions.
2. risk handling Council pursuant to the provisions of this regulation, the terms of the credit institution and the other provisions of the law to handle risks occured for the cases specified in article 10 of this regulation when there is enough legal records specified in article 12 of this regulation and self responsible of his decision before the law.
Article 12. Legal profile for making the base handle risks include:

1. Records of loans; screening stage, discount negotiable and other short-term valuable papers; guarantee; financial leasing; the payment service and the other documents of the risks are handled according to the provisions of article 10 of this regulation.
2. A verification of the financial capacity of the object granted credit, the Agency's payment service decided to establish business and financial administration.
3. Apart from the above records, in each case specifically is more of the following legal documents: a/for the bankrupt organisation or dissolution:-the decision to declare bankrupt the business of the Court or the decision to dissolve the business of State management agencies have the authority under the provisions of the law (a copy);
-Report on the handling of the assets of the bankrupt enterprise or a liquidation of assets of the business was dissolved.
b/for organizations, individuals do not have the ability to make the repayment obligations due to unforeseen causes such as natural disasters, epidemics, fires or by State mechanisms, policy changes:-confirmation of the State Agency has the authority under the provisions of the law on the Organization of the individuals do not have the ability to make the repayment obligations due to unforeseen causes such as natural disasters, epidemics, fires or by State mechanisms, policy changes.
-Minutes of testing, determine the amount of the losses of the people's Committee has the authority under the law.
c/for customer loans, guarantor loans, lease financing, who served as personal payment service has died or was declared dead by the courts (under the provisions of article 91, the Civil Code) which is no longer the property to pay the debt:-certificate certified by the local government authority under the provisions of the law or decision intention declared dead by the court competent according to the law the Regulation (copies);
-Confirmation of the people's communes, wards Committee about individuals no longer assets to pay debt.
d/for customer loans, guarantor loans, lease financing, who served as personal payment service were missing according to the provisions of article 88, the civil code that is no longer the property to pay the debt after the handle property of the missing person as defined in article 89 , The civil code:-the missing statement of decisions courts have the Authority (a copy);
-Confirmation of the people's communes, wards Committee about individuals no longer assets to pay debt.
d/for customer loans, guarantor loans, lease financing, who served as personal payment service courts sentenced to prison on 1 year:-judgment or the judgment of the Court of excerpts (copies);
-The verification text no longer assets to pay debts, the enforcement agency of the people's Committee of the province where the person was sentenced to reside.
Article 13.
Any funds recovered from the risks has been treated with reserve (after deducting the related expenses and taxes, if any) are income accounting irregularities in the activity of credit institutions.
4. Accounting, report and handle breach of article 14. Credit institutions performing the accounting excerpt creation, use and amount recovered after using the reserve as defined by the State Bank.
Article 15.
1. asset classification report "There", formed the reserve to handle risk in banking: a) Before June 30 of every year of the first month, credit institutions report to the State Bank and the Ministry of Finance (in form No. 1A attached):-credit institutions the State send the State Bank (Bank Inspector) The Ministry of finance;
-Credit institutions, credit institutions non-bank joint venture with foreign, non-bank credit organization 100% foreign capital, foreign bank branches in Vietnam sent State Bank (Inspector banks), the Ministry of finance, State Bank branch and the financial agency the city, where the headquarters of the credit organization;
-Other credit organizations send State Bank branch and The financial agencies, the city where the credit organization headquarters.
b) before the date of the second month of every year, The State Bank branch, the city of the synthesis report of other credit institutions defined in art. 1 this send about the State Bank (Inspector banks), the Ministry of Finance (in the form of 1B attach).
2. Report the use of redundancy to handle risk in banking: a) before the day of the first month of the current quarter, the credit organization up to send the report to use the reserve to handle risks the previous quarter for the State Bank and the Ministry of Finance (in form No. 2A attach) :-credit institutions the State send the State Bank (Inspector banks), the Ministry of finance;
-Credit institutions, credit institutions non-bank joint venture with foreign, non-bank credit organization 100% foreign capital, foreign bank branches in Vietnam sent State Bank (Inspector banks), the Ministry of finance, State Bank branch and the financial agency the city, where the headquarters of the credit organization;
-Other credit organizations send State Bank branch and The financial agencies, the city where the credit organization headquarters.
b) before June 15, the start of the current quarter, the Bank's branch in the province, the city of synthesis reports of credit institutions as defined in point a of paragraph 2 of this Article posted on State Bank (Inspector banks), the Ministry of Finance (in the form of 2B attached).
Article 16.
1. State Bank (Bank inspectors) and the Finance Ministry to check, monitor the implementation of CITES and to use risk prevention in banking operations of credit institutions.
2. Credit institutions, individuals violating the provisions of this regulation, depending on the level of violation, would be sanctioning administrative violations or prejudice criminal liability.
III. Article 17 ENFORCEMENT TERMS. The amendment, supplement the terms of this policy by the Governor of the State Bank decided after reunification with the Minister of finance.
 
 
 
FORM NO. 1A CREDIT ORGANIZATION.............................



The SOCIALIST REPUBLIC of VIETNAM independence-freedom-happiness ASSET CLASSIFICATION REPORT "THERE", FORMED the RESERVE to HANDLE RISK in BANKING ACTIVITIES years............ Unit: million asset classification I. "Yes": 1. The assets "Yes" of the credit level activities: Group 1 consisting of:-less than the loan repayment term (including term of debt rescheduling).



. . . . . . . . . . . . . . . . . .



-The discount amount, discount negotiable and other short-term valuable papers not yet due for payment.



. . . . . . . . . . . . . . . . . .



-Financial leasing payments not yet due to pay rent.



. . . . . . . . . . . . . . . . . .



Group 2 consists of:-The secured loans overdue repayments under 180 days; These unsecured loans overdue repayment of under 90 days.



. . . . . . . . . . . . . . . . . .



-The discount amount, discount negotiable and other short-term valuable papers were overdue payments in times of under 30 days.



. . . . . . . . . . . . . . . . . .



-The amount of money paid in lieu of the person is guaranteed but not yet recovered in time of under 30 days.



. . . . . . . . . . . . . . . . . .



-Financial leasing payments that lessees do not pay rent in time under 180 days.



. . . . . . . . . . . . . . . . . .



Group 3 consists of:


 



-The guaranteed loans were overdue repayments from 180 days to 360 days; These unsecured loans were overdue repayments from 90 days to 180 days.



. . . . . . . . . . . . . . . . . .



-The discount amount, discount negotiable and other short-term valuable papers were overdue payment from 30 days to 90 days.



. . . . . . . . . . . . . . . . . .



-The amount of money paid in lieu of the guarantee but has not recovered in time from 30 days to 90 days.



. . . . . . . . . . . . . . . . . .


 

 


-Financial leasing payments that lessees do not pay rent from 180 days to 360 days.



. . . . . . . . . . . . . . . . .



Group 4 includes:-The secured loan has been overdue repayments from 360 days or more; These unsecured loans were overdue repayments from 180 days or more.



. . . . . . . . . . . . . . . . . .



-The funds discount, discount negotiable and other short-term valuable papers were overdue payments from 90 days or more.



. . . . . . . . . . . . . . . . . .



-The amount of money paid in lieu of the person is guaranteed but not yet recovered from the last 90 days or more.



. . . . . . . . . . . . . . . . . .



-Financial leasing payments that lessees do not pay rent from 360 days or more.



. . . . . . . . . . . . . . . . . .



2. The assets "Yes" of the payment service for customers.



. . . . . . . . . . . . . . . . . .



II. Excerpt: setting the total amount quoted up..................


 
 
 


 

Schedule control.........., on September ... in ...

General Manager (Director) FORMS the SBV BRANCHES 1B NUMBER.............



The SOCIALIST REPUBLIC of VIETNAM independence-freedom-happiness ASSET CLASSIFICATION REPORT "THERE", FORMED the RESERVE to HANDLE RISK in BANKING ACTIVITIES years............ Unit: million VND TCTD 1 TCTD.



Total classified assets I. "Yes": 1. The assets "Yes" of the credit level activities: Group 1 consisting of:-less than the loan repayment term (including term of debt rescheduling).



.....................-The discount amount, discount negotiable and other short-term valuable papers not yet due for payment.



. . . . . .



. . . . . .



.......-financial leasing payments not yet due to pay rent.



. . . . . .



. . . . . .



. . . . . . .



Group 2 consists of:-The secured loans overdue repayments under 180 days; These unsecured loans overdue repayment of under 90 days.



. . . . . .



. . . . . .



.......-The discount amount, discount negotiable and other short-term valuable papers were overdue payments in times of under 30 days.



. . . . . .



. . . . . .



.......-the amount of money paid in lieu of the person is guaranteed but not yet recovered in time of under 30 days.



. . . . . .



. . . . . .



.......-financial leasing payments that lessees do not pay rent in time under 180 days.



. . . . . .



. . . . . .



. . . . . . .



Group 3 consists of:-The secured loan has been overdue repayments from 180 days to 360 days; These unsecured loans were overdue repayments from 90 days to 180 days.



. . . . . .



. . . . . .



.......-The discount amount, discount negotiable and other short-term valuable papers were overdue payment from 30 days to 90 days.



. . . . . .



. . . . . .



.......-the amount of money paid in lieu of the guarantee but has not recovered in time from 30 days to 90 days.



. . . . . .



. . . . . .



.......-financial leasing payments that lessees do not pay rent from 180 days to 360 days.



. . . . . .



. . . . . .



. . . . . . .



Group 4 includes:-The secured loan has been overdue repayments from 360 days or more; These unsecured loans were overdue repayments from 180 days or more.



. . . . . .



. . . . . .



.......-the funds discount, discount negotiable and other short-term valuable papers were overdue payments from 90 days or more.



. . . . . .



. . . . . .



.......-the amount of money paid in lieu of the person is guaranteed but not yet recovered from the last 90 days or more.



. . . . . .



. . . . . .



.......-financial leasing payments that lessees do not pay rent from 360 days or more.



. . . . . .



. . . . . .



. . . . . . .



2. The assets "Yes" of the payment service for customers.



. . . . . .



. . . . . .



. . . . . . .



II. Excerpt: setting the total amount quoted up......



. . . . . .



. . . . . . .


 
 


 

Schedule control.........., on September ... in ...

Director of the FORM 2A CREDIT ORGANIZATION.............................



The SOCIALIST REPUBLIC of VIETNAM independence-freedom-happiness REPORTED USING REDUNDANCY to HANDLE RISKS in the BANKING quarter.................... Unit: million i. total amount in years...................



II. use of redundancy to handle risk in You........................



In which: a/for the bankrupt organization................... b/for the Organization dissolved................... c/for organizations, individuals do not have the ability to make the repayment obligations due to unforeseen causes such as natural disasters, epidemics, fires, or by the state change mechanism , policy.



 

 

.................../d for customer loans, guarantor loans, lease financing, who served as personal payment service has died or was declared dead by the courts (under the provisions of article 91, civil law) that is no longer the property to pay the debt.



 

 

 

.................../for customer loans, guarantor loans, lease financing, who served as personal payment service were missing according to the provisions of article 88, the Civil Law that is no longer the property to pay the debt after the handle property of the missing person as defined in article 89 , Civil law.



 

 

 

 

................... e/for customer loans, guarantor loans, lease financing, who served as personal payment service courts sentenced to prison over a year.



 

 

. . . . . . . . . . . . . . . . . . .




III. The amount recovered has entered into extraordinary income in the quarter.



. . . . . . . . . . . . . . . . . .



IV. Total amount processed risks not yet recovered to the time of the report (accumulated)...................


 
 
 


 

Schedule control.........., on September ... in ...

General Manager (Director) FORMS the SBV BRANCHES no 2B.............



The SOCIALIST REPUBLIC of VIETNAM independence-freedom-happiness REPORTED USING REDUNDANCY to HANDLE RISKS in the BANKING quarter.................... Unit: million VND TCTD 1 TCTD.



Total i. total amount in years...................... .



II. use of redundancy to handle risk in You............................ .



In which: a/for the bankrupt organization...................... .



b/for the Organization dissolved...................... .



c/for organizations, individuals do not have the ability to make the repayment obligations due to unforeseen causes such as natural disasters, epidemics, fires or by State mechanisms, policy changes.



. . . . . . .



. . . . . . .



. . . . . . . . .



d/for customer loans, guarantor loans, lease financing, who served as personal payment service has died or was declared dead by the courts (under the provisions of article 91, civil law) that is no longer the property to pay the debt.



. . . . . . .



. . . . . . .



. . . . . . . . .



d/for customer loans, guarantor loans, lease financing, who served as personal payment service were missing according to the provisions of article 88, the Civil Law that is no longer the property to pay the debt after the handle property of the missing person as defined in article 89 , Civil law.



. . . . . . .



. . . . . . .



. . . . . . . . .



e/for customer loans, guarantor loans, lease financing, who served as personal payment service courts sentenced to prison over a year.



. . . . . . .



. . . . . . .



. . . . . . . . .



III. The amount recovered has entered into extraordinary income in the quarter.



. . . . . . .



. . . . . . .



. . . . . . . . .



IV. Total amount processed risks not yet recovered to the time of the report (accumulated).



. . . . . . .



. . . . . . .



. . . . . . . . .


 
 


 

Schedule control.........., on September ... in ...

Director