Supplementing regulations on borrowing, buying and selling valuable papers
The Governor of the State Bank has just signed and issued Circular No. 01/2013/TT-NHNN amending and supplementing a number of articles in Circular No. 21/2012/TT-NHNN dated June 18, 2012 regulating lending, borrowing, purchase and sale of valuable papers with a term between credit institutions and foreign bank branches.
(Source: nganhangonline)
Circular 01 supplements concepts in the interbank market, including: “Lending and borrowing transactions,” “Loan extension,” “Adjustment of debt repayment period,” “Transfer of overdue debt.”
In addition to the conditions specified in Circular 21, this Circular amends and supplements the following condition: at the time of performing the borrowing transaction, credit institutions and foreign bank branches must not have overdue debts of 10 days or more at other credit institutions and foreign bank branches, except in cases where the Governor of the State Bank permits borrowing.
Transactions in Vietnamese Dong between credit institutions and foreign bank branches that are members of the Interbank Electronic Payment System must be made via the Interbank Electronic Payment System, except for cases such as transactions outside the operating hours of the Interbank Electronic Payment System; transactions transferring money to repay principal and interest of loans; transactions that do not transfer principal of loans; money transfers to carry out transactions of buying and selling listed bonds at the Stock Exchange with a term are made in accordance with current regulations of the law on securities.
Regarding the purpose of lending and borrowing, credit institutions and foreign bank branches are allowed to lend and borrow from each other to compensate for temporary shortages of compulsory reserves, payment capacity and capital business on the basis of balancing capital sources and capital use, ensuring business efficiency and operational safety for credit institutions and foreign bank branches.
In addition, Circular 01 also amends and supplements a number of articles on loan terms; purchase and sale terms and the effectiveness of lending and borrowing activities; term purchase and sale of valuable papers between credit institutions and foreign bank branches.
Some activities not covered by this Circular include: capital regulation activities between cooperative banks and people's credit funds; lending and borrowing activities between people's credit funds; lending and borrowing activities between foreign bank branches in Vietnam of the same foreign bank; collection and payment activities on payment accounts between credit institutions and foreign bank branches; lending activities to ensure the ability to pay for securities transactions on the Stock Exchange between payment banks selected by the State Securities Commission and members of the Securities Depository Center which are credit institutions and foreign bank branches.
Circular 01 takes effect from January 7./.
According to (TTXVN) - LT
