On June 30, 2016, the State Bank of Vietnam issued Circular No. 18/2016/TT-NHNN on amendments to certain articles of Circular No. 21/2012/TT-NHNN on the lending, borrowing, sale and repurchase of financial instruments by credit institutions and branches of foreign banks.
According to Circular No. 18/2016/TT-NHNN of the State Bank of Vietnam, credit institutions or foreign banks' branches shall perform the lending, borrowing, sale and repurchase of financial instruments on these conditions:
- They comply with Circular No. 21/2012/TT-NHNN and regulations on the organization and operation of credit institutions or foreign banks’ branches;
- They apply internal regulations on professional processes and risk management procedure with regard to lending, borrowing (e.g. customer credit rating, loan limit determination, transaction-based processes of lending and borrowing) and sale and repurchase of financial instruments between credit institutions or foreign banks’ branches in conformity to Circular No. 21/2012/TT-NHNN;
- They are not restrained, barred or suspended by the State Bank from lending, borrowing and sale and repurchase of financial instruments with credit institutions or foreign banks' branches upon transactions.
View more details at Circular No. 18/2016/TT-NHNN of the State Bank of Vietnam, effective from August 22, 2016.
- Thanh Lam -
Address: | 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City |
Phone: | (028) 7302 2286 |
E-mail: | info@lawnet.vn |