State Bank to make banking system more transparent

Nhan Dan - The State Bank of Vietnam (SBV) will make public the key financial soundness indicators (FSI) of local commercial banks in a move to make the banking system more transparent, according to Circular 35/2011/TT-NHNN.
The State Bank of Vietnam moves to improve banking system transparency by disclosing key information about local commerc
The State Bank of Vietnam moves to improve banking system transparency by disclosing key information about local commerc

The core indicators that will be made available include risk-weighted assets, the ratio of non-performing loans to total gross loans and sectoral distribution of loans to total loans, as well as returns on assets and equity.

The central bank will also disclose information on the development of the banking and financial systems as well as information on mergers, acquisitions, dissolutions and insolvencies of commercial banks.

The SBV’s move is deemed a crucial step towards increased transparency in the banking system and has received positive response from both financial institutions and international donors.

The Circular will take effect on April 1, 2012.

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