On Oct. 7, 2025, VIE GVT published the finalized circular dated Sep. 30, 2025 re debt management and asset exploitation, which will be effective from Dec. 1, 2025.
In addition, VIE CB issued a press release dated Oct. 3, 2025 re the finalized circular.
Document dated Sep. 30, 2025, received from VIE GVT Oct. 7, summarized on Oct. 8.
On May 19, VIE CB proposed circular re subsidiaries of FIs.
VIE CB proposed a draft circular regulating the activities of subsidiaries and affiliates of credit institutions in the field of debt management and asset exploitation.
Sets out activity scope of debt management companies, rights and obligations of debt management companies and credit institutions, and the responsibilities of VIE CB.
Draft Circular
Subsidiaries may only conduct permitted activities, may purchase debts only if parent’s non-performing loan (NPL) ratio is below 3% or under an approved restructuring plan.
All transactions must ensure fairness, legality, protection of rights of involved parties.
Debt management companies may manage debts, assets under parent institution’s authorization, buy and sell debts, handle asset recovery as part of restructuring plans.
Eligible debts include on-balance sheet bad debts and off-balance sheet debts after provisioning, plus debts arising from loans, guarantees, or financial lease contracts.
Debt valuation must be authorized and free of borrower fees; subsidiaries must establish internal rules and report them to the VIE CB within 10 working days.
Parent institutions must supervise subsidiaries and submit annual transaction reports to VIE CB; VIE CB and its local branches will monitor, inspect, and enforce compliance.
Consultation Period
Comments may be sent to VIE CB Department of Credit Institutions; no deadline set.
Aug. 2025 Public Comments
On Aug. 29, 2025, VIE CB published a summary of the public comments it received.
Sep. 2025 Circular Finalized
On Sep. 30, 2025, VIE CB issued the finalized circular effective from Dec. 1, 2025.
Document dated Sep. 30, 2025, received from VIE CB Oct. 2, summarized on Oct. 7.
Oct. 2025 VIE GVT Publication
On Oct. 7, 2025, VIE GVT published the finalized circular dated Sep. 30, 2025 re debt management and asset exploitation, which will be effective from Dec. 1, 2025.
In addition, VIE CB issued a press release dated Oct. 3, 2025 re the finalized circular.
Document dated Sep. 30, 2025, received from VIE GVT Oct. 7, summarized on Oct. 8.
