Regulations on Overnight Lending in Interbank Electronic Payments

07:44, 11/07/2024

According to Circular 29/2016/TT-NHNN stipulating overdraft and overnight lending in interbank electronic payments, the implementation of overdraft and overnight lending follows the following procedure:

- Credit institutions perform custody of valuable papers as collateral for overdraft participation, overnight loans;- The State Bank of Vietnam (SBV) issues notifications about overdraft limits for credit institutions;- To perform overdrafts and overnight loans for credit institutions;- Credit institutions repay overnight loan balances;- The SBV recovers overnight loan balances;- The SBV handles cases where credit institutions have overdue overnight loan balances and other arising related issues.

Simultaneously, the Circular stipulates principles for overdrafts and overnight loans in interbank electronic payments at the SBV:

- Credit institutions are allowed to overdraft to compensate for capital shortages in interbank electronic payments.- Credit institutions are granted overnight loans by the SBV to settle overdrafts at the end of the working day.

Circular 29/2016/TT-NHNN takes effect from March 25, 2017, replacing Decision 04/2007/QD-NHNN.

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