Special Lending Cases Defined
The circular clearly defines the following special lending cases:
1. The State Bank of Vietnam’s Special Lending from Central Bank Money Issuance Functions:
Special lending to credit institutions facing a bank run, including commercial banks, cooperative banks, people’s credit funds, and microfinance institutions, to ensure depositors’ withdrawals.
Special lending to distressed credit institutions, including commercial banks, cooperative banks, finance companies, and microfinance institutions, to implement approved recovery plans.
Special lending to distressed commercial banks to execute mandatory transfer schemes as per the Law on Credit Institutions 2024.
Special lending to support distressed commercial banks’ recovery through mandatory transfer schemes under the Law on Credit Institutions 2010.
2. Vietnam Cooperative Bank’s Special Lending Cases:
Special lending to people’s credit funds facing a bank run to ensure depositors’ withdrawals.
Special lending to distressed people’s credit funds to implement approved recovery plans.
3. Special Lending by Other Credit Institutions (excluding Vietnam Cooperative Bank):
Special lending to credit institutions facing a bank run, including commercial banks, cooperative banks, people’s credit funds, and microfinance institutions, to ensure depositors’ withdrawals.
Special lending to distressed credit institutions, including commercial banks, cooperative banks, finance companies, and microfinance institutions, to implement approved recovery plans.
Special lending to distressed commercial banks to execute mandatory transfer schemes as per the Law on Credit Institutions 2024.
The Central Bank Issues New Circular on Special Lending Cases
The State Bank of Vietnam has issued Circular 37/2024/TT-NHNN, which provides guidelines for special lending.
