Thông tư 21/2012/TT-NHNN

CIRCULAR

REGULATION ON OPERATION OF LENDING, BORROWING; TERM PURCHASE AND SALE OF VALUABLE PAPERS WITH TERM AMONG FOREIGN CREDIT INSTITUTIONS AND BANK BRANCHES

Pursuant to the Law on 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 Decree No. 96/2008/ND-CP of August 26, 2008 of the Government regulating the functions, duties, powers and organizational structure of the State Bank of Vietnam;

Considering the proposal of the Director of Credit Department;

The Governor of the State Bank of Vietnam promulgates the Circular stipulating the operation of lending, borrowing; term purchase and sale of valuable papers with term among foreign credit institutions and bank branches;

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular stipulates the operation of lending, borrowing; purchase and sale of valuable papers with term among foreign credit institutions and bank branches on the monetary market.

Article 2. Subjects of application

1. The subjects eligible for lending and borrowing include: credit institutions are commercial banks, financial companies, financial leasing companies, cooperative banks, people's credit funds, micro financial institutions; foreign bank branches operating in Vietnam under the Law on credit Institutions.

2. The subjects eligible for buying, selling valuable papers with term include: credit institutions are commercial banks, financial companies, financial leasing companies, cooperative banks, people's credit funds, micro financial institutions; foreign bank branches operating in Vietnam under the Law on credit Institutions.

Article 3. Explanation of terms

In this Circular, the following terms are construed as follows:

1. Transaction of lending and borrowing is the transaction in which a foreign credit institution and bank branch (the lender) hands over to another foreign credit institution and bank branch (the borrower) a sum of money for use in a definite time with the principle of repayment of principal and interest.

2. Transaction of purchase and sale with term is the transaction in which a foreign credit institution, bank branch purchases and receives the ownship of valuable papers of undue payment (the purchaser) from another foreign credit institution and bank branch (sellers), at the same time the seller commits to re-purchase those valuable papers after a definite time.

3. Lending time limit is the period calculated from the subsequent date of the borrowing date to the maturity date of the loan.

4. Time limit of purchase and sale of valuable papers with term from the subsequent date of the purchasing date to the re-purchasing date, including days-off and holidays and are calculated by date (hereinafter referred to as the time limit of purchase and sale).

5. Remaining time limit of the valuable papers is the period from the date when the valuable papers are purchased and sold to the maturity date of the entire principal of those valuables

6. Loan interest rate is the interest rate of the lending and borrowing calculated as a percentage per year

7. Interest rate of purchase is the interest rate of purchase and sale with term of the valuable papers to calculate the price difference among the purchase price and re-purchase price, calculated as a percentage per year.

8. Borrowing date is the date in which the lender has to fulfill the obligation to transfer money to the borrower.

9. Maturity date is the date in which the borrower has to pay the entire principal and interest and types of fees (if any) of the loan to the lender. In case the maturity date falls on the day-off and holiday, the maturity date will be the next working day

10. Purchase date is the date in which the seller transfers the ownership of the valuable papers to the purchaser and the purchaser completes the payment of valuable papers to the seller.

11. Re-purchase date is the date in which the purchaser implements the transfer of ownership of the valuable papers to the seller and the seller completes the payment of the re-purchase of the valuable papers to the purchaser. In case the re-purchase date falls on the day-off and holiday, the re-purchase date will be the next working day.

12. Purchase price is the amount of money that the purchaser has to pay the seller upon the purchase of valuable papers on the purchase date. The purchase price will be agreed upon by both parties as a basis for determining the re-purchase price.

13. Re-purchase price is the amount of money that the re-purchaser (the seller) has to pay to the purchaser upon the re-purchase of valuable papers on the re-purchase date.

14. Transaction limit is the maximum balance maintained in a definite period (no more than 01 year) of the foreign credit institutions and bank branches to each other on the interbank market.

15. Customers are the foreign credit institutions and bank branches, partners with relationship of lending, borrowing, purchase and sale with term of the valuable papers with the foreign credit institutions and bank branches.

Article 4. Conditions for participating in the transaction of lending and borrowing; purchase and sale of valuable papers with term (referred to as transaction)

1. The foreign credit institutions and bank branches are entitled to perform the transaction upon satifying the following conditions:

a) Having the technical infrastructure (machinery, equipment, software programs, ...) to satisfy the requirements of transaction on the currency markets, ensuring the update of data transactions completely, accurately and in a timely manner for each transaction of the foreign credit institution and foreign banks to customers;

b) Having a staff of qualification and professional capacity to carry out the transaction;

c) Having internal regulations about the professional process, risk management process for the activity of lending and borrowing (including regulations on customer credit rating, the process for determination of loan limits, process of transaction process of lending and borrowing applicable to each form of specific transaction), purchase and sale with term of valuable papers among the foreign credit institutions and bank branches in accordance with the provisions of this Circular;

The foreign credit institutions and bank branches send the written internal regulations on professional process and risk management process of their units to the State Bank (Credit Department) right after they are issued;

d) Not being applied by the State bankd the measures to limit, suspend, temporarily suspend the implementation of the lending, borrowing, purchase and sale with term valuable papers on the interbank market at the time of transaction.

2. In addition to the conditions specified in paragraph 1 of this Article, the foreign credit institutions and bank branches, besides the implementation of borrowing transactions, must not have overdue debts from 10 days or more for interbank transactions at the time of the transaction.

Article 5. Form of implementation of transaction and payment

1. The foreign credit institutions and bank branches carry out the transaction in the forms: electronic transactions network of the State Bank or institutions providing services permittedd by authorized agency or via telephone (with voice recording) or other forms.

2. The selection for the applying forms of transaction will be agreed upon by the parties in accordance with the conditions of each foreing credit institution and bank branches and to ensure the transaction is performed safely, efficiently, complant with the provisions of law.

3. The transactions made in Vietnam Dong of the foreign credit institutions and bank branches that are the members of the Interbank Electronic Payment System must be made the payment via the Interbank Electronic Payment System by the high-value payment order in accordance with regulations of the State Bank.

Article 6. Transaction information

1. All transactions must be updated and stored completely on the information database of the foreign credit institutions and bank branches. The basic information data includes:

- Name of transaction parties;

- Date of transaction;

- Content of the transaction;

- Value of the transaction;

- Interest rate of transaction;

- Time limit of the transaction;

- Date of payment;

- Security measures (if any).

- 2. All agreements of the transaction performance shall be confirmed in writing (referred to as transaction certificate) or other forms of certification agreed upon by the two parties in conformity with the regulations of law. The certification will be the legal foundation for performance of transactions.

3. In case of a written confirmation, the transaction certificate can be printed from the electronic transactions network or via fax or other forms. The certificate must bear the signature (handwritten signatures or electronic signatures) or the transaction code of the employees of the parties participating in the transaction.

4. The confirmation of the transaction including the following contents:

- Name of transaction parties;

- Date of transaction;

- Content of the transaction;

- Value of the transaction;

- Interest rate of transaction;

- Time limit of the transaction;

- Form of transaction security (if any)

- Mode of payment;

Article 7. Risk provision for transactions

The foreign credit institutions and bank branches perform the classification, set-up and use of provision to handle the risks of loans and purchase with term of the valuable papers for the foreign credit institutions and bank branches under the provisions of the State Bank Governor.

Chapter 2.

SPECIFIC PROVISION

SECTION 1. TRANSACTION OF LENDING AND BORROWING

Article 8. Principle of lending and borrowing

Upon performing the transaction of lending and borrowing, the foreign credit institutions and bank branches must guarantee the following principles:

1. Fully satisfying the conditions as prescribed in Article 4 of this Circular.

2. Only performing at the head offices of the credit institutions. For foreign bank branches, only performing at the head offices of foreign bank branches in Vietnam.

3. Taking responsibilities for their decision on lending and borrowing by themselves.

4. The borrower must repay in full and on schedule for the entire loan amount owed including the principal, interest and fees (if any).

Article 9. Purpose of lending and borrowing

1. The foreign credit institutions and bank branches are entiled to make lending and borrowing from each other to cover a temporary shortage of reserve requirement, affordability and balance of short-term capital.

2. The foreign credit institutions and bank branches must use the loan capital resources on the interbank market flexibly, efficiently and appropriate with the orientation of the foreign credit institutions and bank branches and maintain the safety rate prescribed by the State Bank.

Article 10. Time limit of lending

The time limit of lending among the foreign credit institutions and bank branches is under 01 years maximum.

Article 11. Lending interest rate

1. The lending interest rate will be agreed upon by the foreign credit institutions and bank branches.

2. In the case of banking activities has unusual changes, the State Bank will stipulate the lending interest rate for the foreign credit institutions and foreign branches to implement.

3. The parties agree in the lending contract on the application of interest rate of overdue fine for the loan not repaid on schedule and not renewed by the lender. The interest rate of overdue fines is up to 150% maximally of the interest rates applicable to the loan in the lending contract or up to 150% maximally of interest rates that the lender is applying for other loans with the same term on the inter-bank market at the time of overdue loan transfer.

Article 12. Loan security

1. The parties agree to apply or not to apply the security for loans in each specific case. The application of the form of securing and processing the loan security assets made ​​under the current provisions of law on the secured transactions.

2. The lenders must have specific provision on the conditions and principles upon considering whether permitting or not permitting the implementation of the form of loan security, and ensure the implementation of the lending activity safely, efficiently and compliant with the relevant current regulations.

 3. The deposit for the purpose of mortgage of valuable papers for the loan guarantee will be agreed by the parties with the depository institutions in accordance with the actuality and provisions of law.

Article 13. Mode of lending and borrowing

The parties will consider and agree to apply the mode of lending and borrowing for each time, under the norms or other modes and ensure the implementation of the lending activity safely, efficiently and compliant with the relevant current regulations.

Article 14. Currency of the lending and borrowing

The foreign credit institutions and bank branches will make the lending and borrowing in Vietnam dong and foreign currencies of free conversion. The lending and borrowing in foreign currency must be made on the basis of the operation scope of foreign exchange permitted by the State Bank for each foreign credit institutions and bank branches.

Article 15. Lending contract

1. All transactions for lending, borrowing done must be made in lending contracts. The lender and the borrower may sign a lending contract for each transaction or sign a master contract generally applicable to all lending transactions and borrowing among two parties as agreed in principle in line with international practice and not contrary to the law of Vietnam.

2. The lending contract can be printed from the electronic transaction network, made on paper, via fax, or other means. The lending contract must contain all seals (unless otherwise made through electronic transaction system) and the signatures (handwritten signatures or electronic signatures) or the transaction code (code) of the transaction parties.

3. The lending contract includes the following basic contents:

- The lender;

- The borrower;

- Date of contract performance;

- Contents of the contract;

- Mode of contract performance;

- Value of the loan;

- Interest rates on loans;

- Loan term;

- Form of loan security (if any);

- Mode of payment;

- Rights and obligations of the parties;

- Provisions on adjustment of the contract during the performance;

- Provisions on dispute settlement, overdue sanction, handling of security assets, extension of the contract term

- Other agreements related to the loans of the parties.

Article 16. Rights and obligations of the lender

1. The lender has the right:

a) To require the borrower to provide information and documents relating to the borrower upon receiving the request for loan / grant of credit limit ; to reject the borrower's request for loan if the borrower does not meet the lending conditions;

b) To require the borrower to have measures for the loan;

c) To extend the loan; adjust repayment term; adjust interest rate; transfer of overdue debts;

d) To request the lender to make the loan repayment before due if the parties have agreement on the repayment before due or detect the borrower’s violations over the lending contract;

dd) Processing the loan security assets or initiating a suit under the provisions of law in case the borrower fails to comply properly and fully their obligations upon maturity of debt if unless otherwise agreed by the parties.

2. The lenders are obliged to::

a) Build specific regulations on the lending activity on the interbank market in accordance with the characteristics and model of its organization;

b) Periodically at least once a year, the lender will review, reassess the customers to determine appropriate credit limits for each customer. The credit limit must be approved by the lender's authorized person;

c) Comply with all agreements in the lending contract.

d) Immediately report in writing to the State Bank (Credit Department) when the borrower fails to comply fully and properly its obligations as committed if the debt is due.

Article 17. Rights and obligations of the borrower

1. The borrower has the right:

a) To make repayment before due if the parties have agreement or upon the lender's approval;

b) Initiate a suit against the lender under the provisions of law if the lender violates the commitments as agreed in the lending contract;

2. The borrower is obliged to:

a) Build specific regulations on the lending activity on the interbank market in accordance with the characteristics and model of its organization;

b) Repay in full and on schedule the principal, interest and other fees (if any) as agreed in the lending contract;

c) Provide relevant information and documents honestly and accurately and take responsibility for the provision of information to the lender on the liquidity, financial statement, the situation of overdue debt at other foreign credit institutions and the bank branches and other relevant necessary information in order to serve the assessment of the customer and determine appropriate transaction limit as required by the lender;

d) Use the loans on the interbank market purposes for the right purpose as specified in Article 9 of this Circular;

dd) Fully and properly implement the obligations as agreed with the lender.

SECTION 2. TRANSACTION OF PURCHASE AND SALE WITH TERM OF VALUBALE PAPERS

Article 18. Principle of the transaction of purchase and sale

Upon performance of the transaction of purchase and sale with term of valuable papers, the foreign credit institutions and the bank branches must ensure the following principles:

1. Only make transactions upon fully satisfying the conditions as prescribed in clause 1, Article 4 of this Circular.

2. Take self-responsibility before law for the decision to purchase and sell its valuable papers with term; implement the purchase and sale of valuable papers with term with other foreign credit institutions and the bank branches as agreed in accordance with the provisions of this Circular, the current relevant legal provisions and international practice.

3. Fully and punctually recover the amount (principal and interest) upon performance of the purchase and sale of the valuable papers with term with other foreign credit institutions and bank branches.

4. Re-purchase the valuable papers sold when they are due as agreed with the purchaser.

5. All interests arising in relation to the valuable papers during the time of performing the purchase and sale of valuable papers with term will be agreed by the foreign credit institutions and bank branches in writing in accordance with the current law.

Article 19. Types of valuable papers

1. The commercial banks, finance companies, cooperative banks, foreign bank branches are entitled to purchase and sell with term the following valuable papers:

a) State Bank's bills;

b) Government’s bonds

c) Trái phiếu được Chính phủ bảo lãnh;

Government-guaranteed bonds

d);Local authority bonds;

dd) Valuable papers issued by the foreign credit institutions and bank branches (including the valuable papers issued by those foreign credit institutions and bank branches) under the provisions of the Bank State;

e) The types of bill, promissory note and bond issued by other organizations.

2. The financial leasing companies are entitled to purchase and sell types of valuable papers with term as prescribed at point a, b, clause 1 of this Article.

Article 20. Conditions of the valuable papers

The valuable papers transacted must satisfy the following conditions:

1. Being the valuable papers legally issued under the regulation of Vietnamese Law and permitted for assignment

2. Being issued by Vietnam dong or foreign currency of free conversion;

3. Legally owned by the seller;

4. The remaining time limit of the valuable papers must be greater than the time limit of purchase and sale.

Article 21. Currency of purchase and sale.

1. For valuable papers issued in Vietnam dong, the foreign credit institutions and bank branches conduct the transactions of purchase and sale in Vietnam dong.

2. For valuable papers issued in foreign currency, the foreign credit institutions and bank branches conduct the transaction of purchase and sale by the foreign currency of those valuable papers. Where the purchase and sale in Vietnam dong, the parties will agree upon the exchange rate applicable on the basis of compliance with the provisions of the State Bank of Vietnam on the foreign exchange rates upon performance.

3. The foreign credit institutions and bank branches only conduct the transactions in foreign currency within the scope of foreign exchange operations permitted by the State Bank for each foreign credit institutions and bank branches.

Article 22. Time limit of purchase and sale.

The time limit of purchase and sale of valuable papers with term among the foreign credit institutions and bank branches is at least 01 day and less than 01 year maximally.

Article 23. Interest of purchase and way of determination of purchase and re-purchase price.

1. The interest rate of purchase applied in purchase and sale of valuable papers with term among the foreign credit institutions and bank branches made ​​by the method of self agreement on the basis of compliance with the current regulations of the Bank State about interest.

2. The foreign credit institutions and bank branches determine the purchase and re-purchase price, for each transaction on the basis of interest purchase, term of purchase and sale agreed, the remaining term of valuable papers and the other relevant information.

The re-purchase price is calculated by the following formula:

Re-purchase price = purchase price x (1 + interest of purchase x term of purchase and sale/365)

Article 24. Contract of re-purchase of valuable papers

1. The transaction of purchase and sale of valuable papers with term on the interbank market must be made into a contract of re-purchase. The buyer and the seller may sign contract of re-purchase each time for each transaction or sign a contract of general re-purchase applicable to all transactions of purchase and sale with term of the valuable papers. The re-purchase contract is made ​​on the basis of agreement of the parties or on the basis of standard contract of re-purchase issued by the State Bank or associations (Bond Trader Association, banking associations, ...) in accordance with the international practice, not inconsistent with the provisions of this Circular and other provisions of the law of Vietnam.

2. The contract of re-purchase can be made in writing via electronic transaction system, on paper, via fax or other means. The contract of re-purchase must have seals and signatures (handwritten signatures or electronic signatures) of the contract performance parties.

3. The contract of re-purchase include the following contents:

a) The seller;

b) The purchaser;

c) Valuable papers are purchased and sold: form (certificate, book recording), serial number, par value or maturity value (the total amount paid when due payment of those valuable papers) , issuer, maturity date;

d) Purchase date;

dd) Purchase price;

e) Purchase interest;

g) Time limit of purchase;

h) Re-purchase price;

i) Re-purchase date;

k) Mode of payment and transfer of valuable papers

l) Handling dispute and breach of contract;

m) Rights and obligations of the parties;

n) Value date of the contract;

o) Other relevant contents

Article 25. The process of purchase and sale

1. When having a need to purchase and sell valuable papers with term, the foreign credit institutions and bank branches made ​an offer to purchase or sell of valuable papers with the other foreign credit institutions and bank branches on the interbank market. The seller must take responsibility before law for the legality and validity of the valuable papers to be offered for sale.

2. The purchaser will check the information of the valuable papers.

3. The transfer of the valuable papers among the seller and purchaser is done as follows:

3.1. In case the valuable papers are listed: Complying with the provisions of the trading floor where the valuable papers are listed.

3.2. In case the valuable papers are not listed: Complying with the professional process and agreement of both parties in accordance with the provisions of law as follows:

a) For the valuable papers that are anonymous certificates: the parties will directly hand over and receive the valuable papers

b) For valuable papers that are the named certificates: the seller hands over to the buyer and simultaneously makes the procedures for thetransfer of ownership to the purchaser under the provisions of relevant law and the issuer;

c) For the book entry valuable papers: the seller hands over the ownership certificate and valuable papers to the purchaser and simultaneously makes the procedures for transferring the ownership of the valuable papers to the purchaser under the provisions of relevant law and the issuer;

d) In case the valuable papers are being deposited, the seller can authorize a depository organization to make the procedures for transferring the valuable papers and the ownership of the valuable papers from the seller to the purchaser.

4. The seller of valuable papers shall comply with its commitment to re-purchase the valuable papers under the agreement. The transfer of re-purchase money from the seller and transfer of the valuable papers and ownership of the valuable papers from the purchaser are performed as specified in paragraph 3 of this Article.

5. Where a party has a need to re-purchase or re-sell the valuable papers before the date of re-purchase, the requesting party will send a written proposal to its partner for consideration and processing. The party receiving the request has a right to approve or disapprove the re-sale or re-purchase of valuable papers before the date of re-purchase with the number and re-purchase price agreed upon by the parties.

Chapter 3.

IMPLEMENTATION ORGANIZATION

Article 26. Regulation on information and reporting

The foreign credit institutions and bank branches shall report the situation of lending and borrowing, purchase and sale with term of the valuable papers in accordance with the statistical and reporting regulation of the State Bank and the provisions of this Circular.

Article 27. Organization of implementation

1. Responsibilities of the Credit Department:

a) Focally monitoring and aggregating the performance of the activities of lending, borrowing, purchase and sale with term of the valuable papers among the foreign credit institutions and bank branches; receiving the documents regulating the professional process and risk management process of the foreign credit institutions, and bank branches;

b) Presiding over and coordinating with the Banking Supervision and Inspection Agency, Department, Monetary Policy Department, Department of Forecast and Monetary Statistics, Department of Banking Information Technology, Payment Department and Office to implement:

- Monitoring and surveying and grasping the situation of implementation and compliance with the provisions in this Circular of the foreign credit institutions and bank branches entering the market.

- Monitoring and aggregating the situation of implementation of the provisions at Point d, Clause 2, Article 16, Article 26 of this Circular of the foreign credit institutions and bank branches and submitting the handling measures to the Governor treatment in each specific case .

- Publishing on the website of the State Bank the information about interest rates of lending and interest rates of purchase of the valuable papers among the foreign credit institutions and bank branches.

- Dealing with problems arising during the implementation of this Circular.

c) Presiding over and coordinating with the units concerned to request the Governor to issue the documents directing and operating the activities of the interbank market if the currency market has unusual changes.

2. Responsibilities of the Banking Supervision and Inspection Agency:

a) Guiding the foreign credit institutions and bank branches to conduct loan classification, set up the risk provision and safety assurance rate in the activities of the foreign credit institutions and bank branches for the loans, purchase and sale with term of the valuable papers;

b) Conducting the regular or irregular inspection and examination and focallly proposing the handling of violations of the foreign credit institutions and bank branches in the observance of the provisions in this Circular under the functions, duties and regulations of law.

c) Providing the Credit Department and the relevant units with the information on the foreign credit institutions and bank branches that are applied State Bank the measures to limit, suspend, temporarily suspend the implementation of activities for lending, borrowing, purchase and sale with term of the valuable papers on the interbank market as soon as there is a decision.

3. Responsibilities of the Department of Finance - Accounting:

Guiding the accounting of the activities related to the transactions of mutual lending, borrowing, purchase and sale with term of the valuable papers among the foreing credit institutions and bank branches as stipulated in Circular hereof.

4. Responsibilities of the Department of Forecast and Monetary Statistics:

a) Coordinating with the Credit Department to perfect the statistic reporting regulations concerning the activities prescribed in this Circular.

b) Presiding over and coordinating with the Credit Department, the Banking Supervision, the Monetary Policy Department in building a mechanism of coordination of provision and exchange of relevant information of the Department above mentioned to serve the administration and management of the professional activities specified in this Circular.

5. Responsibilities of the State Bank branches of the central run provinces and cities:

a) Implementing the supervision and inspection of the foreing credit institutions and bank branches in the observance of this Circular under the functions and tasks and reporting to the State Bank Governor on the violations and handling of violations according to their competence;

b) Monitoring and aggregating the situation of lending, borrowing, purchase and sale of valuable papers with term among the foreign credit institutions and bank branches in the area and promptly recording the unusual arising circumstances. Every month, submitting the general report to the Credit Department before the 15th date of the subsequent month.

Article 28. Effect

1. This Circular takes effect on September 01, 2012. The following documents and provisions cease to be effective from the date this Circular takes effect:

a) Decision No. 1310/2001/QD-NHNN dated October 15, 2001 of the State Bank Governor on the promulgation of regulations on capital loan among the credit institutions;

b) The provisions of the purchase and sale with term of the valuable papers among the credit institutions that are commercial banks, finance companies, fiancial leasing companies, the Central People's Credit Fund, foreign bank branches stipulated in Decision No. 1325/2004/QD-NHNN on October 15, 2004 of the State Bank Governor regulating the issuance of the Regulation on the discount, rediscount of valuable papers of the credit institutions to customers, Decision No. 17/2006/QD-NHNN dated April 20, 2006 of the State Bank Governor on the amendment and supplementation of the Article 10 and Article 12 of the Regulation on the discount, re-discount of valuable papers of credit institutions to customers issued together with Decision No. 1325/2004/QD-NHNN on October 15, 2004 of the State Bank Governor;

c) The document No. 9756/NHNN-CSTT of the State Bank dated December 10, 2009 on the interest rate of the inter-bank market; Document No.7585/NHNN-CSTT of the State Bank dated August 19, 2008 on the application of interest rate of loan in Vietnam dong among the credit institutions on the interbank market;

d) Other regulations on lending, borrowing, purchase and sale with term of the valuable papers among the foreign credit institutions and bank branches contrary to the provisions in this Circular.

2. During the time the People's Credit Fund has not been converted into the cooperative bank, the implementation of the transaction of the lending, borrowing, purchase and sale with term of the valuable papers of the Central People's Credit Fund with the foreign credit institutions and bank branches will be done under the regulations applicable to cooperative bank in this Circular.

3. The foreign credit institutions and bank branches are not allowed to perform the deposit operation and receipt of deposit (excluding payment deposits) in other foreign credit institutions and bank branches from the date this Circular takes effect.

4. The transactions that are performed before the date this Circular takes effect on the basis of contracts of lending, borrowing, purchase and sale with term of the valuable papers and contracts of deposit and receipt of deposit (other than payment deposits) that have been signed among the foreign credit institutions and bank branches, the foreign credit institutions and bank branches will comply with the agreements as signed.

5. The Chief of Office, Director of Credit Department, Heads of relevant units under the State Bank, Director of State Bank branches in central run provinces and cities, Chairman of the Board of Directors, Chairman of Member Board, and the General Directors (Directors) of the foreign credit institutions and bank branches are liable to implement this Circular.