Thông tư 22/2010/TT-NHNN

CIRCULAR

PROVIDING FOR THE MOBILIZATION OF DEPOSITS AND THE PROVISION OF LOANS IN GOLD BY CREDIT INSTITUTIONS

Pursuant to the 1997 Law on the State Bank of Vietnam, and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the Slate Bank of Vietnam:
Pursuant to the 1997 Law on Credit Institutions, and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Decree No. 96/ 2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
The State Bank of Vietnam provides for the mobilization of deposits and the provision of loans in gold by credit institutions to their clients as follows:

Article 1. Credit institutions licensed to deal in foreign exchange may mobilize deposits and provide loans in gold under this Circular. Gold in which credit institutions may mobilize deposits and provide loans is gold plates up to standards of gold trading enterprises licensed by the State Bank of Vietnam to produce gold plates.

Article 2. Credit institutions may only mobilize deposits in gold through issuing negotiable instruments and provide loans in gold for production (fashioning) and trading of gold jewelries (not for production and trading of gold plates). The mobilization of deposits and provision of loans in gold must comply with the State Bank of Vietnam's regulations on domestic issuance of negotiable instruments by credit institutions, provision of loans by credit institutions to their clients and other relevant legal documents.

Article 3. From the effective date of this Circular, credit institutions may not convert deposits mobilized in gold into Vietnam dong and other monetary forms. The ratio of deposits in gold which have been converted into money under Clause 2, Article 7 of the State Bank Governor's Decision No. 432/2000/QD-NHNN1 of October 3, 2000, on credit institutions" operations of raising and use of capital in gold or in Vietnam dong with its value guaranteed by gold price, shall be reduced and liquidated not later than June 30, 2011.

Article 4. Credit institutions shall fix interest rates of mobilized deposits and provided loans in gold based on the market capital supply and demand, demand for loans and credit ratings of borrowers, assuring their business efficiency. They shall publicly post up these interest rates.

Article 5. Responsibilities of units

1. Credit institutions shall:

a/ Issue documents providing specific professional guidance on mobilization of deposits and provision of loans in gold in accordance with regulations on mobilization of deposits, provision of loans, business safety ratios and other relevant legal documents, and in conformity with their business conditions and characteristics and charters.

b/ Send documents providing specific professional guidance on mobilization of deposits and provision of loans in gold to the State Bank's provincial-level branches in localities in which they are headquartered and the banking inspection and supervision authority right after these documents are issued.

c/ Send reports on mobilization of deposits and provision of loans in gold, made according to a set form, and provide relevant information at the request of the Stale Bank of Vietnam in each period.

2. The State Bank's provincial-level branches shall:

a/ Inspect and examine the mobilization of deposits and provision of loans in gold by credit institutions in their localities, and handle violations according to their competence.

b/ Send reports on the mobilization of deposits and provision of loans in gold by credit institutions, made according to a set form: report on difficulties and problems in the mobilization of deposits and provision of loans in gold by credit institutions to the State Bank Governor for settlement.

3. The units at the head office of the State Bank of Vietnam shall advise the State Bank Governor on implementing this Circular according to their respective functions and duties.

Article 6. Organization of implementation

1. This Circular takes effect on the date of its signing and replaces the State Bank Governor's Decision No. 432/2000/QD-NHNN1 of October 3, 2000, on credit institutions' operations of raising and use of capital in gold or in Vietnam dong with its value guaranteed by gold price; and Decision No. 1019/2001/QD-NHNN of August 14, 2001, amending and supplementing Decision No. 432/2000/QD-NHNN1.

2. For deposits and loans in gold or in Vietnam dong with its value guaranteed by gold price which are mobilized and provided before the effective date of this Circular, credit institutions and their clients may continue carrying out signed agreements until the validity expiration of their contracts.

3. The director of the Office, the director of the Monetary Policy Department and the heads of the units of the State Bank of Vietnam: directors of the State Bank's provincial-level branches; and chairpersons of Boards of Directors and directors general (directors) of credit institutions shall implement this Circular. -