On Nov. 22, 2024, LTH CB issued Resolution 03-143 (Res 03-143), amending a Board resolution LTH CB of Sep. 1, 2011, on the amended Provisions of Responsible Lending.
The Change the Responsible Lending Regulations, approved by LTH CB Board on Sep. 1, 2011 by Resolution 03-144, has been amended in respect of point 22, on interest.
The changed text confirms if providing credit with variable rate or fixed interest rate for a partial period, the creditor must perform a credit interest rate sensitivity test and make sure borrowers can all repay any debt obligations when interest rate increases.
When performing a sensitivity test, a creditor must apply current credit interest rate, but not lower than credit interest rate in line 3 of the table, when calculating the DSTI.
The Board determined that this new resolution will enter into force. on May 1, 2025.
On Feb. 10, LTH CB amended rules on responsible consumer lending.
LTH CB issued resolution 03-22 amending resolution 03-62 of Mar. 2013 on approval of Creditworthiness of consumer credit recipients and responsible lending regulations.
Overview
Consumer credit providers and mutual lending platform operators shall adopt rules to ensure that the creditworthiness of consumer credit recipients is properly assessed.
In line with regulations and considering EBA guidelines on lending and monitoring.
Effectiveness
The resolution shall enter into force on Apr. 1, 2022.
Mar. 2022 Announcement and FAQ
On Mar. 15, 2022, LTH CB announced it amended rules to comply with EBA guidelines.
Regulations on Organization of Internal Control and Risk Assessment (Management).
Regs on Creditworthiness Assessment and Responsible Lending of Consumer Credit Recipients; Regs on Internal Control, Risk Assessment of Credit Unions Organization.
The amendments, adopted in Feb, implement EBA guidelines on lending, monitoring.
To ensure proper implementation of the guidelines LTH CB compiled a list of FAQ; this tool addresses implementation, will be updated with questions from interested parties.
Per laws regulating LTH CB activities, bank is not authorized to officially interpret acts issued by ESAs, its opinion cannot be understood as official interpretation of legal acts.
Nov. 2024 Legislation Updated
On Nov. 22, 2024, LTH CB issued Resolution 03-143 (Res 03-143), amending a Board resolution LTH CB of Sep. 1, 2011, on the amended Provisions of Responsible Lending.
The Change the Responsible Lending Regulations, approved by LTH CB Board on Sep. 1, 2011 by Resolution 03-144, has been amended in respect of point 22, on interest.
The changed text confirms if providing credit with variable rate or fixed interest rate for a partial period, the creditor must perform a credit interest rate sensitivity test and make sure borrowers can all repay any debt obligations when interest rate increases.
When performing a sensitivity test, a creditor must apply current credit interest rate, but not lower than credit interest rate in line 3 of the table, when calculating the DSTI.
The Board determined that this new resolution will enter into force. on May 1, 2025.
Regulators
LTH CB
Entity Types
Bank; CNSM; Corp; MG Orig; SIFI
Reference
OG 2024-20351, Res 03-143, 11/22/2024; FAQ, PR, 3/15/2022; RF 03-22, 2/10/2022; Res 03-62, 3/19/2013; Res 03-144, 9/1/2011; EBA/GL/2020/06; Citation: Res 03-143;
