Responsibilities of Units under the State Bank of Vietnam during the Covid-19 Pandemic

Illustrative image (Source: Internet)

Under Article 8 of Circular 01/2020/TT-NHNN, the responsibilities of units under the State Bank of Vietnam are prescribed as follows:

Responsibilities of the Credit Department for Economic Sectors:

- Consolidate reports as stipulated in Clause 3, Article 7 of Circular 01/2020/TT-NHNN and Point a, Clause 3 of this Article;- Take the lead, cooperate with the Monetary Policy Department, the Banking Supervision Agency, and the State Bank of Vietnam branches in advising the Governor of the State Bank of Vietnam on addressing issues arising during the implementation of this Circular.

Responsibilities of the Banking Supervision Agency: Conduct inspections and supervision of credit institutions and foreign bank branches regarding the implementation of this Circular in accordance with their functions and duties.

Responsibilities of the State Bank of Vietnam branches:

- Within the first 15 (fifteen) days of each month, consolidate reports from people's credit funds in the locality as stipulated in Clause 4, Article 7 of this Circular and send them to the Credit Department for Economic Sectors for consolidation;- Conduct inspections and supervision of credit institutions and foreign bank branches regarding the implementation of this Circular in accordance with their functions and duties.

Responsibilities of the Vietnam National Credit Information Center: The Vietnam National Credit Information Center shall adjust customers' credit information as regulated in this Circular based on the proposals of credit institutions and foreign bank branches.

The Circular also stipulates that credit institutions and foreign bank branches shall decide whether to waive or reduce interest and fees according to their internal regulations for the outstanding debts arising from credit granting activities (excluding corporate bond purchase and investment) with payment obligations of principal and/or interest due from January 23, 2020, to within 03 months from the day immediately following the date the Prime Minister of the Government of Vietnam announces the end of the COVID-19 pandemic, and the customer is unable to repay the principal and/or interest on time according to the signed contract or agreement due to decreased revenue and income caused by the impact of COVID-19.

See details at Circular 01/2020/TT-NHNN, which is effective from March 13, 2020.

Le Hai

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