Responsibilities of the Provincial/City Branch of the State Bank when the State Bank lends to a credit institution

Pursuant to Clause 4, Article 26 of Circular 08/2021/TT-NHNN (Effective from October 27, 2021) stipulating the responsibilities of units under the State Bank as follows:

State Bank branches in provinces and cities

- Provide opinions on special loans, extension of special loans as prescribed in this Circular;

- Based on the Decision on special control of credit institutions, account for refinancing loans at State Bank branches in provinces and cities as special loans;

- Execute special loan contracts according to Appendix V issued with this Circular, disburse, extend, and recover special loans as prescribed in this Circular and documents of the State Bank regarding special loans, extension of special loans, and relevant legal provisions;

- Act as the focal point for implementing the provisions at point b, clause 4, Article 12 of this Circular regarding special loans being accounted for at State Bank branches in provinces and cities;

- Coordinate with the State Bank Transaction Office to implement the provisions at point d, clause 3 of this Article; notify in writing to the State Bank Transaction Office of the completion of receiving collateral assets as debt rights added by the borrower (except in cases where the special loan being accounted for at the State Bank branch in provinces and cities and the borrower does not replace the collateral with valuable papers); notify in writing to the credit institution about the deduction of the credit institution's account to recover debts and implement the provisions at points a, b, d, e, clause 5, clause 6, Article 15 of this Circular regarding special loans being accounted for at the State Bank branches in provinces and cities;

- Coordinate with the Special Control Board to implement the provisions at clauses 1 and 2, Article 25 of this Circular;

- Within the first 07 working days of the month following the month with outstanding loans or arising changes regarding special loans at the State Bank branches in provinces and cities, submit a report according to Appendix VI issued with this Circular to the Banking Inspection and Supervision Agency, the Monetary Policy Department;

- Supervise, inspect, and handle violations according to authority over credit institutions under the object of micro-safety inspection and supervision of the State Bank branches in provinces and cities in implementing the provisions of this Circular;

- In case of receiving notification from competent authorities, the Special Control Board, or through inspection and supervision work detecting that credit institutions under the object of micro-safety inspection and supervision of the State Bank branches in provinces and cities violate the provisions at clause 4, Article 15 of this Circular, the State Bank branches in provinces and cities shall issue a violation notification document to the borrower, Vietnam Deposit Insurance, Vietnam Cooperative Bank, and simultaneously send to the Special Control Board, the Banking Inspection and Supervision Agency, the Monetary Policy Department; the violation notification document must at least contain details of the misuse of funds by the credit institution;

- Notify in writing to the State Bank Transaction Office of the complete recovery of the principal and interest of the special loan;

- Perform other responsibilities as prescribed in this Circular.

Respectfully!