Individuals borrowing from banks from 3 billion VND or more may be subject to a risk coefficient of 150%.

The State Bank is seeking opinions from units, organizations and individuals on the draft Circular regulating the limits and safety ratios in the operations of banks and foreign bank branches. This is the draft Circular replacing Circular 36/2014/TT-NHNN. In particular, the draft provides new adjustments to the minimum capital safety ratio.

In order to ensure closer adherence to international standards and practices (Basel 1 and Basel 2) on the basis of maintaining individual capital adequacy ratios and consolidated capital adequacy ratios; protecting the interests of depositors, enhancing the risk tolerance of credit institutions against market shocks, this regulation requires credit institutions to restructure their investment portfolios according to the risk level for each type of "Yes" asset based on the use of capital sources and adjusting the risk coefficient for potentially risky areas.

Specifically, according to the draft, the minimum capital adequacy ratio is determined by equity capital compared to total risky assets.

In which, the equity component includes tier 1 capital, tier 2 capital, amounts deducted from equity capital and the total risk-bearing assets component determined for all assets on the Balance Sheet and off-balance sheet accounts; Each on-balance sheet "Available" asset is classified into a risk coefficient group. If an "Available" asset simultaneously satisfies many different risk coefficients, the highest risk coefficient is applied; Off-balance sheet assets must be transferred to the corresponding on-balance sheet assets to determine the risk coefficient.

The risk coefficient is adjusted to increase to ensure control and restriction for areas with high potential risks. Therefore, for a risk coefficient of 50%, receivables are fully secured by housing (including future housing), land use rights, construction works associated with the borrower's land use rights and meet one of the following conditions:

One is a loan to serve business activities according to the regulations of the State Bank regulating lending activities of credit institutions and foreign bank branches.

Second is personal loans for customers to buy social housing, buy houses under government programs and projects.

Third is a personal loan for customers to buy a house with an outstanding principal value of less than 1.5 billion VND.

In addition, a risk coefficient of 150% applies to personal loans for living needs with a principal balance of VND 3 billion or more.

Along with that, the Draft also provides some new points on credit limits and restrictions, and the maximum ratio of short-term capital used for medium and long-term loans.