Modification of the Powers of Cooperative Banks Regarding People’s Credit Funds

19:58, 09/07/2024

This is the newly amended content of Circular 21/2019/TT-NHNN amending and supplementing certain provisions of Circular 31/2012/TT-NHNN dated November 26, 2012, of the Governor of the State Bank of Vietnam stipulating cooperative banks.

The authority of the cooperative bank over the people's credit fund as stipulated in Article 44 of Circular 31/2012/TT-NHNN is amended at Clause 2, Article 1 of Circular 21/2019/TT-NHNN as follows:

Authority of cooperative bank over people's credit fund, Circular 21/2019/TT-NHNN

Illustration (source internet)

- Authorized by the State Bank to provide information related to the activities of the people's credit fund.- Require the people's credit fund to provide information and reports for the purpose of capital coordination and system safety supervision.- Inspect and supervise the member people's credit funds in the use of borrowed capital and their ability to repay loans from the cooperative bank.- Inspect and supervise the activities of the member people's credit funds at the request of the State Bank in terms of subjects, content, scope, and duration of inspection and supervision.

In addition, this Circular also amends the conditions to become a member of the cooperative bank, which are: People's credit funds and other credit institutions are not subject to special control according to the provisions of Clause 1, Article 145 of the Law on Credit Institutions (as amended and supplemented) at the time of applying for membership (instead of Clause 3, Article 146 of the Law on Credit Institutions).

See more regulations in Circular 21/2019/TT-NHNN effective from January 1, 2020.

Thu Ba

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