Thông tư 38/2012/TT-NHNN

CIRCULAR

STIPULATING ON GOLD POSITION OF CREDIT INSTITUTIONS

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

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

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, stipulating functions, tasks, powers and original structure of the State bank of Vietnam;    

Pursuant to the Government’s Decree No. 24/2012/ND-CP of April 03, 2012, on management of gold business activities;

At the proposal of Director of the Foreign Exchange Control Department;

The Governor of the State bank promulgates Circular stipulating on gold position of credit institutions,

Article 1. Scope of regulation and subjects of application

1. This Circular stipulates on gold position of credit institutions that are allowed to conduct business in purchase, sale of gold bar.

2. The activities of business in purchase and sale of gold bar specified in this Circular just include spot transactions of gold purchase and sale. 

Article 2. Interpretation of terms

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

1. Credit institutions being allowed to conduct business in purchase, sale of gold bar are credit institutions that are granted licenses of business in purchase, sale of gold bar by the State bank of Vietnam (hereinafter referred to as the State bank).

2. The gold position of credit institutions means the gold bar balance arising from activities of purchase and sale of gold bar of credit institutions that is converted into Vietnam dong under the converting gold price of position.

3. The spot transaction of gold purchase and sale are transaction in which two parties conduct purchase, sale of an amount of gold bar under the gold price agreed at time of transaction and end payment, delivery, receipt within 02 (two) next working days.   

4. The converting gold price of position is the buying price of gold bar in corresponding to each type of gold bar that is announced at the end of report day by credit institutions.

Article 3. Principle of calculation of gold position

1. The gold position of credit institutions is defined at the end time of working days.

2. The gold position of credit institutions is calculated on the basis of revenue of spot purchase, sale of gold bar, including commitments of spot purchase and sale of gold bar outside of table.

3. The gold position of credit institutions do not includes balance of gold bar arising from activities of gold purchase and sale in order to perform final settlement of balance of activities, which have been arisen before the effective day of this Circular, including: 

a) Activities of mobilization, provisions of loans as prescribed in the Circular No. 11/2011/TT-NHNN of April 29, 2011 of the State bank, on termination of mobilization of deposits and provision of loans in gold by credit institutions and the Circular No. 12/2012/TT-NHNN of April 27, 2012 on amending and supplementing a number of articles of the Circular No.11/2011/TT-NHNN;  

b) Change from gold into Vietnam dong in according to the Circular No. 32/2011/TT-NHNN of October 06, 2011 of the State bank on amending and supplementing a number of articles of Circular No. 11/2011/TT-NHNN;  

c) Provision of mortgage in gold, keeping gold and using gold for other purpose. 

Article 4. Limit of gold position

1. The gold position at the end of day of credit institutions is not permitted to exceed 2% in comparison with own capital of credit institutions. 

The own capital for calculation of gold position limit of a credit institution is own capital of adjacent month prior to the report term of credit institutions, defined as prescribed by the State bank on rate for assurance of safety in activities of credit institutions.

2. Credit institutions are not permitted to maintain the negative gold position.

3. In necessary cases, credit institutions may maintain a gold position that is different to the limit specified in clause 1, clause 2 this Article when being approved by the Governer of the State bank of Vietnam.

Article 5. Regime or report

Not later than at 14 hour of working day, credit institutions shall send report of gold position of the preceding working day to the State bank of Vietnam (Department of Foreign Exchange Control and Department of Monetary Forecast and Statistics) in according the Annex together with this Circular. 

Article 6. Implementation provisions

1. This Circular takes effect on January 10, 2013.

2. The department of finance and accounting shall guide credit institutions that are allowed to conduct business in purchase, sale of gold bar for calculation of gold position on the basis of provisions on accounting.

3. The Department of Informatics Technology shall, within its function and duties, guide credit institutions to implement report of gold position in case of report by electronic methods.

4. The agencies of inspection, supervision of banks shall coordinate with the State bank’s branches of provinces, cities in examination, inspection and supervision of implementation of provisions of this Circular and handling of violation acts as prescribed by law.

5. The Chief of office, Director of Department of Foreign Exchange Control and heads of units of the State bank of Vietnam; chairpersons of boards of directors or members’ councils, directors general (directors) of credit institutions shall implement this Circular.