Cases in which credit Institutions are eligible for special loans in Vietnam

Cases in which credit Institutions are eligible for special loans in Vietnam

The special lenders are the State Bank of Vietnam and other credit institutions that provide special loans to credit institutions. Cases eligible for special loans include:

(1) For the State Bank of Vietnam (special loans sourced from the central bank's money issuance function):

- Special loans to credit institutions experiencing mass withdrawals, including commercial banks, cooperative banks, people's credit funds, microfinance organizations to pay deposits to depositors;

- Special loans to credit institutions under special control, including commercial banks, cooperative banks, finance companies, microfinance organizations to implement an approved recovery plan;

- Special loans to commercial banks under special control to implement a compulsory transfer plan as approved under the Law on Credit Institutions 2024;

- Special loans to commercial banks under special control to support recovery according to the compulsory transfer plan as approved under the Law on Credit Institutions 2010.

(2) For the Vietnam Cooperative Bank:

- Special loans to people's credit funds experiencing mass withdrawals to pay deposits to depositors;

- Special loans to people's credit funds under special control to implement an approved recovery plan.

(3) For other credit institutions (excluding the Vietnam Cooperative Bank):

- Special loans to credit institutions experiencing mass withdrawals, including commercial banks, cooperative banks, people's credit funds, microfinance organizations to pay deposits to depositors;

- Special loans to credit institutions under special control, including commercial banks, cooperative banks, finance companies, microfinance organizations to implement an approved recovery plan;

- Special loans to commercial banks under special control to implement a compulsory transfer plan as approved under the Law on Credit Institutions 2024.

More details can be found in Circular 37/2024/TT-NHNN, which comes into force in Vietnam from July 01, 2024.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE