Thông tư 01/2015/TT-NHNN

CIRCULAR

DEFINING TRADING, SUPPLY OF INTEREST RATE DERIVATIVE PRODUCTS OF COMMERCIAL BANKS, BRANCHES OF FOREIGN BANKS

Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Government's Decree No. 156/2013/NĐ-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam

At the request of the Director of the Financial Policy Department;

The Governor of the State bank of Vietnam promulgates the Circular defining trading, supply of interest rate derivative products of commercial banks, branches of foreign banks

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular defines trading, supply of interest rate derivative products of commercial banks, branches of foreign banks

Article 2. Regulated entities

1. Commercial banks, branches of foreign banks operating trading, supply of interest rate derivative products.

2. Customers using interest rate derivative products traded and supplied in the domestic market by commercial banks, branches of foreign banks, including:

a) Credit institutions, branches of foreign banks established and operated under the Law on credit institutions;

b) Legal entities (excluding credit institutions and branches of foreign banks) established and operated under the laws of Vietnam.

3. Organizations and individuals involved in trading, supply of interest rate derivative products of commercial banks, branches of foreign banks under the provisions of this Circular.

Article 3. Interpretation of terms

In this Circular, the following terms shall be interpreted as follows:

1. Interest rate derivative products are financial instruments valued according to expected changes in interest rates.

2. Trading, supply of interest rate derivative products means commercial banks, branches of foreign banks conclude and carry out the interest rate derivative contracts with foreign financial institutions in the international market in order to prevent and limit interest rate risk of commercial banks, branches of foreign banks or the commercial banks, branches of foreign banks conclude and carry out the interest rate derivative contracts with customers in the in domestic market in order to prevent, limit the interest rate risk of the customer.

3. original transactions are the transactions under the interest rate risk, including: depositing money, receipt of deposits; issuing, trading, investing valuable papers; lending and borrowing capital; lease of finance; other legal transactions under the interest rate risk, except for interest rate derivative dossiers.

4. Reciprocal transactions means commercial banks, branches of foreign banks conclude and carry out the interest rate derivative contracts with commercial banks, branches of foreign banks supplying interest rate derivative products in domestic market or with foreign financial institutions in order to prevent and limit interest rate risk for the interest rate derivative contracts concluded and carried out with customers.

5. Value of the principal amount is the amount of the original transaction or the amount under interest rate risk arises from the balance sheet which credit institutions and branches of foreign banks need to prevent, limit the interest rate risks.

6. Value of the nominal capital is the amount which the parties concluding interest rate derivative contracts agree as the basis for calculation of payable interest and received interest, net interest or charges (if any); the value of nominal capital may be equal or less than the value of the principal amount.

7. Net interests or net losses in each payment period of interest rate derivative contracts are the difference between received interest amount and payable interest amount in each payment period.

8. Net interests or net losses of interest rate derivative contracts of credit institutions and branches of foreign banks are net gains or net losses of all the payment period of the interest rate derivative contracts.

9. The reference rate is the interest rate agreed by the parties concluding interest rate derivative contracts as a basis for carrying out the interest rate derivative contracts.

10. Interest rate option-cap is the highest interest rate agreed by parties concluding contracts of interest rate option in order to prevent the interest rate risk when the market fluctuates.

11. Interest Rate Option - Floor is the lowest interest rate agreed by parties concluding contracts of interest rate option in order to prevent the interest rate risk when the market fluctuates.

12. Foreign financial institutions include commercial banks, investment banks, credit institutions and other financial institutions established and operated under foreign laws.

Article 4. Principles on trading, supply of interest rate derivative products

1. The trading, supply of interest rate derivative products of commercial banks, branches of foreign banks shall be complied with the agreement between the parties concluding and carrying out the interest rate derivative contracts, in accordance with the provisions of this Circular and the relevant law provisions.

2. Commercial banks, branches of foreign banks shall only be entitled to trading, supply of interest rate derivative products in case:

a) State Bank of Vietnam approves the trading, supply of interest rate derivative products in the Establishment and Operation License, or in a separate document in accordance with the law;

b) The written documents on internal regulations on trading, supply of interest rate derivatives products in accordance with the provisions of this Circular and relevant law provisions have issued, ensuring mechanisms of control, internal audit, risk management for trading, supply of interest rate derivative products.

3. Commercial banks, branches of foreign banks trading, providing interest rate derivative products related to foreign exchange must comply with the law of Vietnam on foreign exchange.

4. Commercial banks, branches of foreign banks trading , providing interest rate derivative products in the international market must comply with the law of Vietnam on operation; foreign exchange in the international market.

5. Credit institutions, branches of foreign banks are entitled to use interest rate derivative products supplied in the domestic market by commercial banks, branches of foreign banks as for legal entities as prescribed in this Circular and relevant law provisions.

Chapter II

TRADING, SUPPLY OF INTEREST RATE DERIVATIVE PRODUCTS

Section 1. Trading, supply of interest rate derivative products in domestic market

Article 5. Purposes of trading, supply of interest rate derivative products in domestic market.

1. Commercial banks, branches of foreign banks shall supply interest rate derivative products to legal entities in order to prevent and limit interest rate risk for the original transaction of such legal entities.

2. Commercial banks, branches of foreign banks shall trade, supply interest rate derivative products to credit institutions and branches of foreign banks in order to prevent, limit interest rate risk for original transaction or prevent, limit interest rate risk arises from the balance sheet of such credit institutions and branches of foreign banks.

Article 6. Scope of trading, supply of interest rate derivative products in domestic market.

Commercial banks, branches of foreign banks shall only be entitled to trading, supply of interest rate derivative products, including:

1. Forward rate agreement: commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, whereby on the date of concluding the interest rate derivative contract, parties shall agree to determine the interest rate which will be applied on the same value of the nominal capital; on the due date of interest rate derivative contracts, commercial banks, branches of foreign banks or customers shall pay a lump-sum the difference amount between the forward interest agreed in the interest rate derivative contract and the reference rate on the same value of the nominal capital.

2. Interest rate swap:

a) interest rate swap: commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which the parties agree the terms of payments of the interest in the same currency (Vietnam dong or foreign currency) depended on the received and payable interest rate agreed (fixed or floating rate) on ​​the same value of the nominal capital;

b) accrual Interest Rate Swap: Is interest rate swap of one currency, in which commercial banks, branches of foreign banks and customers agree about the received or payable interest amount depended on the interest rates attached conditions based on fluctuations of exchange rate, market interest rates and cumulated according to the agreed payment term on the same value of nominal capital.

3. Cross currency swap:

a) cross currency swap: commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which the parties agree the payment term of the interest amount in two different currencies depended on the same value of the nominal capital; the value of the nominal capital with or without exchange shall be agreed by the two parties, exchange of the value of the nominal capital in part in the term or at the end of the term shall be applied at fixed exchange rates agreed in compliance with the provisions of the State Bank of Vietnam on the exchange rate at the time of the signing of the interest rate derivative contract ;

b) Accrual Interest Rate Swap: is cross currency swap, in which commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which the parties agree received or payable interest amount depended on the interest rates attached conditions based on fluctuations of exchange rate, market interest rates and cumulated according to the payment term agreed on the value of nominal capital; the value of the nominal capital with or without exchange shall be agreed by the two parties, exchange of the value of the nominal capital in part in the term or at the end of the term shall be applied at fixed exchange rates agreed in compliance with the provisions of the State Bank of Vietnam on the exchange rate at the time of the signing of the interest rate derivative contract ;

4. Interest rate option:

a) Interest Rate Option - Cap: commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which commercial banking, branches of foreign banks shall sell to customers the rights to purchase cap interest rate (not the obligation) on the value of the nominal capital at the time before or on the due date of interest rate derivative contracts to prevent, limit interest rate risk from increase.

Within the effect of interest rate derivative contracts, the reference interest rate of fluctuations increases and is higher than the cap interest rates, if requested by the customer, commercial banks, branches of foreign banks shall make payments to customers the interest amount depended on the basis of the difference between the reference rate with the cap interest rate and the value of the nominal capital; if the reference rate is lower than the cap interest rate, no payment arises between commercial banks and branches of foreign banks and clients for the difference between the reference rate and the cap interest rate.

Customers must pay for commercial banks, branches of foreign banks as agreed in the interest rate derivative contract to buy the right of interest rate of option-cap; This fee may be paid lump-sum on the transaction date, or many times as interest payment rate during the effect of the interest rate derivative contracts as agreed in the interest rate derivative contracts;

b) interest Rate Option – Floor: Commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which commercial banking, branches of foreign banks shall sell to customers the rights to purchase floor interest rate (not the obligation) on the value of the nominal capital at the time before or on the due date of interest rate derivative contracts to prevent, limit interest rate risk from decrease. Within the effect of interest rate derivative contracts, the reference interest rate decreases and is lower than the limited interest rate, if requested by the customer, commercial banks, branches of foreign banks must make payments to customers the interest amount calculated on the difference between the reference interest rate with the floor interest rate and the value of the nominal capital; if the reference interest rate is higher than the floor interest rate, no payment arises between commercial banks and branches of foreign banks with customers for the difference between the reference rate and the floor interest rate. Customers must pay for commercial banks, branches of foreign banks as agreed in the interest rate derivative contract to buy the right of interest rate of option-floor; This fee may be paid lump-sum on the transaction date, or many times according to payment term of interest rate during the effect of the interest rate derivative contracts as agreed in the interest rate derivative contracts;

c) Interest Rate Option – Collar: Commercial banks, branches of foreign banks shall conclude interest rate derivative contracts with customers, in which commercial banking, branches of foreign banks shall sell to customers the rights to purchase the cap interest rate (not the obligation), and buy from the customers the rights to buy the floor interest rate (not the obligation) on the same value of the nominal capital at the time before or on the due date of interest rate derivative contracts. Within the effect of interest rate derivative contracts, the reference interest rate increases and is higher than the cap interest rate, if requested by the customer, commercial banks, branches of foreign banks must make payments to customers the interest amount that are calculated on the difference between the reference interest rate with the cap interest rate and the value of the nominal capital; if the reference interest rate decrease and is lower than the floor interest rate, if requested by commercial banks, branches of foreign banks, customers must make payments to commercial banks, branches of foreign banks the interest amount that are calculated on the difference between the reference interest rate with the floor interest rate and the value of the nominal capital. If the reference interest rate changes but still within the limit between the cap interest rate and the floor interest rate, there shall be no payments between commercial banks, branches of foreign banks and customers for the difference between the reference interest rate or the cap interest rate or the floor interest rate. Customers and commercial banks, branches of foreign banks shall agree in interest rate derivative contracts on fee payment and fee level.

Article 7. Conditions for customers using interest rate derivative products traded and supplied in the domestic market by commercial banks, branches of foreign banks.

1. For legal entities using interest rate derivative products:

a) The use purpose of the interest rate derivative products is preventing and limiting the interest rate risk for the original transaction of such legal entities;

b) The original transaction must be valid, in accordance with its line of production and trading and the provisions of law;

c) They must have financial resources according to the assessment of commercial banks, branches of foreign banks trading, providing interest rate derivative products to fulfill the incurred payment obligations when carrying out the interest rate derivative contract;

d) They must implement measures to meet the obligations under the agreement with commercial banks, branches of foreign banks trading, providing interest rate derivative products.

2. For credit institutions, branches of foreign banks using interest rate derivative products:

a) The use purpose of the interest rate derivative products is preventing and limiting the interest rate risk on the original transaction or preventing and limiting the interest rate risk arising from the balance sheet of such credit institutions, branches of foreign banks;

b) Their original transactions must be valid and in accordance with the operation content and scope under the provisions of the Law on credit institutions and the provisions of relevant laws. In case of prevention and limitation of interest rate risk arising from the balance sheet, the credit institutions and branches of foreign banks must have a plan to prevent and limit interest rate risk approved by legal representatives of such credit institutions, branches of foreign banks.

c) They must have financial resources according to the assessment of commercial banks, branches of foreign banks trading, providing interest rate derivative products to fulfill the incurred payment obligations when carrying out the interest rate derivative contract;

d) They must implement measures to meet the obligations under the agreement with commercial banks, branches of foreign banks providing interest rate derivative products.

Article 8. Reciprocal transactions

1. Commercial banks, branches of foreign banks are entitled to reciprocal transactions with commercial banks, branches of foreign banks supplying interest rate derivative products in domestic market or with foreign financial institutions in order to prevent and limit interest rate risk for the interest rate derivative contracts supplied to customers in domestic market.

2. Types of interest rate derivative products which commercial banks and branches of foreign banks are entitled to reciprocal transactions shall be the interest rate derivative products specified in Article 6 of this Circular.

3. The term and value of the reciprocal transactions:

a) In the case of reciprocal transaction for one interest rate derivative contracts which commercial banks, branches of foreign banks have supplied to customers, the term and value of the reciprocal transaction shall not exceed the remaining term and the value of the nominal capital of the interest rate derivative contracts;

b) In the case of reciprocal transaction for two or more interest rate derivative contracts, the term and value of the reciprocal transaction shall not be exceeded the longest remaining term of interest rate derivative contracts and the total value of the nominal capital of the interest rate derivative contracts.

4. When carrying out the reciprocal transaction with foreign financial institutions, in addition to the provisions of paragraphs 2 and 3 of this Article, commercial banks, branches of foreign banks shall implement the provisions as follows:

a) Implement the relevant provisions of the law on foreign exchange operations in international markets;

b) Implement with foreign financial institutions credit rated at least Baa / P-3 according to the ratings of Moody's Investors Service or BBB- / A-3 according to the ratings of Standard & Poor's or BBB- / F3 according to ratings of Fitch Ratings at the time of concluding interest rate derivative contracts, except where the branches of foreign banks carry out reciprocal transactions with the parent bank or oversea branch of the parent bank.

Section 2. Trading of interest rate derivative products in international market

Article 9. Purpose of trading of interest rate derivative products in international market

1. Commercial banks, branches of foreign banks are entitled to trading interest rate derivative products in the international market on the basis of the concluding and carrying out the interest rate derivative contracts with foreign financial institutions in order to:

a) Prevent and limit interest rate risk for effective original transaction. The original transactions must be consistent with the content and scope of operations of commercial banks, branches of foreign banks under the provisions of the Law on credit institutions and the provisions of relevant laws;

b) Prevent and limit the interest rate risk arising from the balance sheet of commercial banks, branches of foreign banks.

2. Commercial banks, branches of foreign banks shall not be entitled to trading interest rate derivative products with foreign financial institutions in international markets besides the contents specified in paragraph 1 of this Article.

Article 10. Scope of trading of interest rate derivative products in international market

Commercial banks, branches of foreign banks shall be entitled to trading interest rate derivative products in international markets besides the contents as specified in paragraph 6 of this Article.

Article 11. Conditions for selection of financial institutions for commercial banks, branches of foreign banks trading interest rate derivative products in the international market

When trading interest rate derivative products in the international market, commercial banks, branches of foreign banks must be conduct with foreign financial institutions credit rated at least Baa / P-3 according to ratings of Moody's Investors Service or BBB- / A-3 under the ratings of Standard & Poor's or BBB- / F3 under the ratings of Fitch Ratings at the time of signing the interest rate derivative contract, except where branches of foreign banks trade interest rate derivative products in the international market with the parent bank or the oversea branch of the parent bank.

Section 3. LIMITATION OF TRADING, SUPPLY AND USE OF INTEREST RATE DERIVATIVE PRODUCTS

Section 12. Limitation of trading, supply and use of interest rate derivative products

1. Credit institutions, branches of foreign banks shall be entitled to trading, supply and use of interest rate derivative products if the limit of net loss of trading, supply and use of interest rate derivative products shall not exceed 5% of the charter capital, funding capital of credit institutions and branches of foreign banks. If the net loss limit exceeds 5% of the charter capital, funding capital, the credit institutions and branches of foreign banks shall stop the signing of the new interest rate derivative contracts, report to the State Bank of Vietnam (Bank Supervision and Inspection Agency) on the causes of loss, measures and remedy duration.

2. When there is demand of concluding new interest rate derivative contracts, credit institutions and branches of foreign banks must determine the limit of net loss of trading, supply and use of interest rate derivative products as a basis of concluding such contracts in consistent with the provisions of Clause 1 of this Article. The limit of net loss of trading, supply and use of interest rate derivative products shall be determined by the sum of net interest and net loss of effective interest rate derivative contracts plus (+) and total net interest and net loss of interest rate derivative contracts paid up in the financial year.

Section 4. INTEREST RATE, INTEREST RATE DERIVATIVE CONTRACTS AND APPLICATION FOR TRADING, SUPPLY OF INTEREST RATE DERIVATIVE PRODUCTS

Article 13. Interest rate applied in interest rate derivative contracts

The parties shall agree and commit in the interest rate derivative contracts with the interest rate to develop the interest rate derivative products, ensure compliance with the provisions of the State Bank of Vietnam on the interest rate of the original transaction at the time parties conclude the contracts.

Article 14. Interest rate derivative contracts

1. The interest rate derivative contracts shall be made in writing, agreed by the parties in accordance with the provisions of this Circular and the provisions of the relevant legislation, including at least the following contents:

a) Name and address of the legal representative of the parties concluding contracts;

b) Original transaction, value of the nominal capital, interest rate applicable in the original transaction, time of principal and interest payment of the original transaction;

c) Interest rates for development of interest rate derivative products;

d) Payment term, payment date and payment method of net interest / loss;

dd) Duration of the contract;

e) Rights and obligations of parties concluding contracts;

g) Changes, adjustments of the contract; and termination of the contract before its duration;

h) Dispute settlement and contract liquidation

2. The parties may agree to apply the form-based contract of international Swaps and Derivatives Association if the contents of interest rate derivative contracts are consistent with the provisions of this Circular and the provisions of relevant legislation.

Article 15. Dossiers of trading, supply of interest rate derivative products

When conducting trading, supply of interest rate derivative products, commercial banks, branches of foreign banks must establish and store dossiers of trading, supply of interest rate derivative products, including

1. Interest rate derivative contracts

2. Other documents related to the concluding and carrying out interest rate derivative contracts in accordance with internal regulations of commercial banks, branches of foreign banks, in accordance with the provisions of this Circular.

Section 5. SETTING UP OF RISK PROVISIONS, ACCOUNTING AND REPORTS

Article 16. Setting up of risk provisions

Credit institutions, branches of foreign banks shall set up and use provisions to handle the risks of trading, supply and use of interest rate derivative products in accordance with the provisions of the State Bank Vietnam.

Article 17. Accounting

Credit institutions, branches of foreign banks shall account for interest rate derivative products under the provisions of Vietnamese Accounting Standards and regulations of the State Bank of Vietnam on accounting account system of credit institutions and branches of foreign banks.

Article 18. Reports

Every month, on the 12th of the month following the reporting month, credit institutions and branches of foreign banks shall report to the State Bank of Vietnam (the Financial policy Department) on trading, supply and use of interest rate derivative products according to forms No.01 and 02 enclosed herewith this Circular.

Chapter III

RESPONSIBILITIES OF COMMERCIAL BANKS, BRANCHES OF FOREIGN BANKS TRADING, SUPPLYING INTEREST RATE DERIVATIVE PRODUCTS AND CUSTOMERS USING INTEREST RATE DERIVATIVE PRODUCTS

Article 19. Responsibilities of commercial banks, branches of foreign banks trading, supplying interest rate derivative products

1. Trade and supply interest rate derivative products in accordance with the provisions of this Circular.

2. Issue internal regulations on trading, supply of interest rate derivative products in accordance with the provisions of this Circular, the provisions of relevant laws and policies on trading, supply of interest rate derivative products of commercial banks, branches of foreign bank.

The internal regulations of commercial banks, branches of foreign banks must include the following contents:

a) Conditions for customers using interest rate derivative products in the domestic market; necessary documents of customers sent to commercial banks, branches of foreign banks;

b) Conditions for foreign financial institutions which commercial banks, branches of foreign banks have concluded and carried out the interest rate derivative contracts in international market;

c) Decentralization, authorization, functions, duties and responsibilities of each individual, department in verification, approval, decision on trading, providing interest rate derivative products;

d) Identification and measurement of risks that may arise during trading, providing interest rate derivative products ; establishment of process and assignment of responsibility for monitoring, controlling and assessment of incurred risks; risk prevention and handling measures, including the total limit of trading, providing interest rate derivative products of commercial banks, branches of foreign banks, limits of trading, providing the interest rate derivative products for a customer and for individuals, organizations assigned to approve, decide trading, providing interest rate derivative products of commercial banks, branches of foreign bank;

dd) Dossiers and information and documents related to trading, providing interest rate derivative products;

e) Other contents as required of internal management board of commercial banks, branches of foreign bank in order to ensure safety and effectiveness of trading, providing interest rate derivative products.

3. Manage and control risks at their headquarters (commercial banks). Manage and control risks in accordance with the provisions of the parent banks or be authorized to manage and control risks by the parent banks (branches of foreign banks).

4. Ask customers to provide information and documents to prove eligibility to use interest rate derivative products under the provisions of this Circular and the internal regulations of commercial banks, branches of foreign banks on trading, providing interest rate derivative products.

5. Provide information completely and accurately contents of interest rate derivative products and risks that may arise when using interest rate derivative products for customers to understand consider and decide the use of interest rate derivative products and take measures to prevent and limit risks.

6. Learn about provisions of foreign laws and international market developments related to the trading of interest rate derivative products, the information on assessment of the credit ratings of foreign financial institutions to consider the decision to enter into and carry out the interest rate derivative contracts with foreign financial institutions in international markets in order to ensure safety and effectiveness of trading of interest rate derivative products of commercial banks, branches of foreign banks.

7. Establish plans to prevent and limit interest rate risk, which shall include analysis of the interest rate risk arising from the balance sheet; the plans to prevent and limit interest rate risk, must be approved by the legal representative of such commercial banks and branches of foreign banks. If commercial banks, branches of foreign banks trading interest rate derivative products in the international market in order to prevent and limit interest rate risk arising from the balance sheet.

8. Store dossiers of trading, providing interest rate derivative products in accordance with the provisions of law.

Article 20. Responsibilities of customers using interest rate derivative products

1. Use interest rate derivative products in accordance with the provisions of this Circular.

2. For legal entities using interest rate derivative products:

a) Provide for commercial banks, branches of foreign bank: The original or certified true copy of the original transaction contract; information and other documents prescribed by commercial banks, branches of foreign bank supplying interest rate derivative products to prove eligibility to use interest rate derivative products as defined in this Circular. Take responsibility before the law for the accuracy and truthfulness of the information and documents provided to commercial banks, branches of foreign bank;

b) Promptly notify the commercial banks, branches of foreign banks of the changes related to the original transaction for consideration and handling the issues related to interest rate derivative contracts;

c) Learn about regulations on law and market developments related to interest rate derivative products to consider and decide the use of interest rate derivative products supplied by commercial banks, branches of foreign bank in order to prevent and limit interest rate risk.

3. For credit institutions, branches of foreign banks using interest rate derivative products:

a) Commit to commercial banks, branches of foreign banks in interest rate derivative contracts, or in a separate document regarding the use of interest rate derivative products in order to prevent, limit the interest rate risk; ready to provide the original or certified true copy of the original transaction contracts or plans to prevent and limit the interest rate risk arising from the balance sheet as required by the State Bank of Vietnam, competent agencies;

b) Provide other information and documents prescribed by commercial banks, branches of foreign banks supplying interest rate derivative products to prove eligibility to use interest rate derivative products as defined in this Circular; Take responsibility before the law for the accuracy and truthfulness of the information and documents provided to commercial banks, branches of foreign banks supplying interest rate derivative products;

c) Develop and approve plans to prevent and limit the interest rate risk arising from the balance sheet, including the analysis of interest rate risk;

d) Develop systems of internal control and internal regulations on risk management, which must include the control, risk management for the use of interest rate derivative products;

dd) Fulfill responsibilities as prescribed in points b and c, Clause 1 of this Article.

Chapter IV

IMPLEMENTATION

Article 21. Effect

1. This Circular takes effect from March 02, 2015.

2. Decision No. 62/2006 / QD-SB dated December 29, 2006 promulgates regulations on conducting interest rate swap transactions.

3. If interest rate derivative contracts are signed before this Circular takes effect, commercial banks, branches of foreign banks shall continue to implement contents of the rate interest derivative contracts in accordance with the provisions of the law which take effect at the time of signing the contract interest rate derivative contracts or modification and addition agreement of interest rate derivative contracts in accordance with the provisions of this Circular.

Article 22. Organizations of implementation

the Chief officers, the Director of the Financial policy department and the Heads of affiliates of the State bank, the Director of branches of the State bank in central-affiliated cities and provinces, the President of the Board of Directors, the President of the Member assembly and the General Director (Director) of credit institutions, branches of foreign banks shall be responsible for the implementation of this Circular.