What principles must the policy bank ensure when mobilizing capital?

Circular 62 specifically listed the principles that policy banks must adhere to when mobilizing funds, including:

- Annually, the General Director of the Social Policy Bank, based on the credit plan and the capital mobilization plan, must present to the Board of Directors of the Social Policy Bank for approval;

- The mobilization of fund sources with market interest rates to lend to poor households and policy subjects must ensure the principle of only mobilizing when all non-interest-bearing or low-interest rate capital sources have been maximized. The mobilization interest rates of the Social Policy Bank are implemented according to the following principles:- In the case where the Social Policy Bank issues bonds guaranteed by the Government of Vietnam to mobilize funds, the issuing interest rate is implemented according to the interest rate framework stipulated by the Ministry of Finance.- In the case where the Social Policy Bank mobilizes funds in the form of issuing certificates of deposit and other valuable papers (excluding the issuance of bonds guaranteed by the Government of Vietnam); accepting deposits from domestic organizations and individuals; mobilizing savings from the poor; borrowing funds from domestic financial institutions and credit institutions, the mobilization interest rates must not exceed the highest mobilization interest rates for the same term and at the same time of four banks: Vietnam Bank for Agriculture and Rural Development, Joint Stock Commercial Bank for Investment and Development of Vietnam, Joint Stock Commercial Bank for Foreign Trade of Vietnam, and Joint Stock Commercial Bank for Industry and Trade of Vietnam in the same area.- In the case where the Social Policy Bank accepts deposits from credit institutions, the mobilization interest rates must not exceed the interest rates stipulated by the State Bank of Vietnam.- In the case where the Social Policy Bank borrows funds from the State Bank of Vietnam in VND or foreign currency, the borrowing interest rates are implemented according to the regulations of the State Bank of Vietnam.- In the case where the Social Policy Bank borrows funds from foreign credit institutions and financial organizations, it must comply with the Law on Credit Institutions and current legal documents. The mobilization interest rates must be submitted to the Ministry of Finance for consideration and opinion before implementation.

See details Circular 62/2016/TT-BTC effective from June 1, 2016.

-Thao Uyen-

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