Chỉ thị 03/CT/NHNN

DIRECTIVE

ON SOLUTIONS MANAGING MONETARY AND CREDIT POLICIES AND BANKING ACTIVITIES IN ENDING MONTHS OF 2013

In furtherance of direction of Government at the Resolution No. 01/NQ-CP dated January 07, 2013, on solutions managing implementation of plan on economic-social development and state budget estimate in 2013 and the Resolution No. 02/NQ-CP dated January 07, 2013, on some solutions to remove difficulties for business production, market support, handling of bad debts, the banking system have implemented drastically solutions on managing monetary policies strictly, carefully, flexibly with the aim to control inflation, stabilize macro economy, remove difficulties for production and business, market support and contribute in economy growth support.

The management of monetary policies and banking activities in 6 beginning months of 2013 attained positive results, inflation is controlled continuously at low level, liquidation of the banking system is improved, the loaning interest rates are reduced strongly, foreign exchange rate and market are stable, gold market is controlled continuously and stabilized gradually, process of bank restructure and handling of bad debts are carried out continuously. However, the management of monetary policies and banking activities in next time still remain difficulties, challenges and need be continued paying attention to and handling, such as: Credit has increased again but still at low level in comparison with orientated norm of 2013; the capital use level of economy still be low because production and business operation still meets difficulties; the carrying out of support loans for dwelling house still gets troubles; the foreign exchange rate still changes; bad debts are high, affecting to capacity of capital circulation in economy and reducing business effectiveness of credit institutions. In order to continue carrying out effectively solutions managing monetary policies and banking activities in ending months of 2013, the Governor of the State bank of Vietnam requests:

1. The banking system continues carrying out and organizing the drastic, synchronous and effective implementation of solutions on managing monetary policies and banking operation according to directions of Government and the Prime Minister at the Resolution No. 01/NQ-CP Resolution No. 02/NQ-CP Resolutions of periodical meetings of Government, Directive No. 09/CT-TTg dated 24/5/2013, Directive of the Governor of the State bank of Vietnam at the Directive No. 01/CT-NHNN dated 31/01/2013, and relevant documents.

2. For credit institutions and foreign banks’ branches (hereinafter collectively referred to as credit institutions):

2.1. To implement synchronously and effectively solutions to mobilize capital, proactively balance between capital sources and capital use in order to ensure liquidation, meet timely credit needs for economy, payment needs in the ending months of 2013.

2.2. To implement solutions to expand credit effectively in order to attain the credit growth of entire system at 12% according to orientation set out at the beginning year, aiming to remove difficulties for production and business, market support and contribute in economy growth support at reasonable level; to strengthen control of credit quality in order to improve business effectiveness and ensure safety of system:

- To control the credit growth according to norm as notified by the State bank of Vietnam; to further attach special importance to provide loans for agriculture, rural areas, export, assistance industry, small- and medium-size enterprises, enterprises applying high technology according to guidelines of Government at the Resolution No. 01/NQ-CP and directions of the State bank of Vietnam.

- Drastically carry out solutions to remove difficulties in credit relation between credit institutions and clients such as: Restructuring the duration for debt payment; considering restructure of loans on the basis of assessment of remedies in production and business operation aiming to ensure the loaning duration to be suitable with production and business cycle and solvency of borrowers, but not for purpose of hiding bad debts of credit institutions, hiding status of production and business operation and unhealthy financial situation of borrowers; consider exemption or reduction of loan interest rate on the basis of financial capability of credit institutions; prioritize for recovery of principal debts before recovery of interest debts for loans on due which borrowers meet difficulties in payment of loan debts; consider provision of new loans for effective loaning needs, further provide loans for aquaculture and livestock households if borrowers ensure the consumption stage and have solvency; support to remove difficulties for enterprises trading coffee.

- To further survey credit needs in order to formulate specific solutions, plans on credit growth for each geographical area, priority branches and fields according to guidelines of Government.

- State commercial banks timely carry out effective provision of loans for dwelling house as prescribed in Circular No. 02/NQ-CP">11/2013/TT-NHNN dated 15/5/2013, of the State bank of Vietnam and the Circular No. 07/2013/TT-BXD dated 15/5/2013, of the Ministry of Construction. To attach special importance to work guiding, explaining policies for people to understand fully and comply with regulation; sum up, timely reflect difficulties, problems arising and send them to the State bank of Vietnam (through the Credit Department) for consideration and handling.

- To organize and carry out credit programs and policies according to directions of Government and the Prime Minister such as: Credit policies for agriculture, rural areas as prescribed in the Government’s Decree No. 41/2010/ND-CP dated 12/4/2010; the loaning policies for catfish livestock according to direction of the Prime Minister at official dispatch No. 1149/TTg-KTN dated 08/8/2012; support policies with the aim to reduce post-harvest losses for agricultural products, aquatic products as prescribed in the Decision No. 63/2010/QD-TTg dated 15/10/2010 and Decision No. 65/2011/QD-TTg dated 02/12/2011 of the Prime Minister; loans for purchase and temporary storage of food, coffee, and so on.

- To strengthen appraisal and supervision over loans in order to ensure loans used properly with purpose stated in credit contracts; examine, audit internally about credit quality, timely detect the borrowers with expression of difficulties in debt payment in order to have suitable remedies.

- In the course of implementation, any arising problems should be reported to the State bank of Vietnam for consideration and handling.

2.3. On the basis of orientation in managing interest rate of the State bank of Vietnam, consider defining the mobilized interest rate under reasonable term in order to stabilize the market interest rate and improve structure of capital sources; to implement strictly regulation on the maximum deposit interest rate, cost thrifty in order to apply new interest rate at reasonable level; implement assessment, review of outstanding balance of old loans, on the basis of financial ability, consider further adjustment of interest rate in order to share difficulties for enterprises and households.

2.4. To strictly comply with regulation of the State bank of Vietnam and other regulation of law on trading foreign currencies, posting up foreign exchange rate, management of foreign exchange in order to stabilize the foreign exchange market and rate; to comply with provisions of the State bank of Vietnam and other provisions of law on managing gold trading activities, on termination of mobilization and loaning in gold, to make finalization of outstanding balance of capital mobilization in gold; formulate and carry out roadmap of making finalization of balance for loaning in gold; perform keeping gold for clients in accordance with regulation, post up publicly charge of services that manage, preserve, keep gold for clients; not pay interests, charges and other forms to clients; make accounting properly with nature of account keeping gold for clients in accordance with regulation of the State bank of Vietnam and not use gold from keeping for clients for mortgage, pledge and deposit to ensure for obligation of paying loans at other credit institutions.

2.5. To proactively perform solutions to handle bad debts and prevent, limit increase of bad debts according to Scheme on handling of bad debts of credit institution system promulgated together with the Decision No. 843/QD-TTg dated 31/5/2013 of the Prime Minister, in which strengthen classification of debts, setting up and handling bad debts by the risk provision source as prescribed by law; to perform assessment, define bad debts that are eligible to sell for Asset Management Company for credit institutions of Vietnam as prescribed at the Government’s Decree No. 53/2013/ND-CP dated 18/5/2013 and guide of the State bank of Vietnam.

2.6. To further carry out synchronously and expeditiously solutions of restructure according to plans in conformity with Scheme on restructuring system of credit institutions during 2011-2015 promulgated together with Decision No. 254/QD-TTg dated 01/3/2012 of the Prime Minister and regulation of law, in which focus in implementation of contents, solutions on restructuring credit institutions in 2013 as directed by the Governor of the State bank of Vietnam.

2.7. To supply fully and exactly information of business operation as prescribed by law and at request of the State bank of Vietnam; timely report difficulties and problems to the State bank of Vietnam and State bank’s branches in provinces and central-affiliated cities.

2.8. To proactively supply information to press about execution of monetary and credit solutions and the implementation results in order to create consensus and support from public onion for activities of banking sector. To proactively coordinate closely with Office of the State bank of Vietnam (SBV) in carrying out communication work of entire banking sector. To strengthen information provision and propagation about banking products and services for people to understand and easily access to, especially programs and incentive policies of State.

3. For units under the SBV:

3.1. Units at head office of SEV shall advice for the Governor of the State bank of Vietnam and proactively carry out solutions within their functions and tasks, in which focus on the following key contents:

a) To follow up situation of macro economy and currency in order to proactively manage flexibly provision of money and instruments of monetary policies with the aim to stabilize the monetary market, ensure liquidation and support credit capital source serving the economy; manage interest rates in conformity with changes of macro economy, monetary, especially changes of inflation to control and regulate the market interest rate at rational level, contribute in stabilization of the monetary market and support for credit growth.

b) To follow up closely credit operation of credit institutions, timely handle difficulties, problems on mechanism and policy aiming to facilitate for system of credit institutions in reaching the credit growth of 12% according to orientation set out at beginning of year in order to remove difficulties for production and business, support market and contribute in support for growth of economy at rational level:

- To consider and adjust norm of credit growth for credit institutions that have capability to expand credit provision on the basis of a healthy and firm capital source, in which focus on priority fields, ensuring credit quality.

- To consider acceptance of suggestions from credit institutions providing loans in foreign currency for capital demand in fields that are prioritized and encouraged for production and business development according to guidelines of Government.

- To positively coordinate with relevant Ministries and sectors in formulating legal documents to remove difficulties, problems on mechanism for credit activities: To formulate a Circular guiding procedures for mortgaging houses formed in future; formulate a Joint Circular guiding on handling of collateral, removing difficulties, problems on registration for guarantee transactions, notarization and contracts of guarantee transactions, so on.

- To carry out effective mechanism of loaning to support dwelling house under the Resolution No. 02/NQ-CP Circular No. 02/NQ-CP">11/2013/TT-NHNN and Circular No. 07/2013/TT-BXD: To provide refinancing loans for state commercial banks with reasonable term and volume, in conformity with progress of disbursement of loans for buying dwelling house ; to monitor closely situation of providing loans for buying dwelling house so as to coordinate with the Ministry of Construction in timely handling problems in the course of implementation.

- To further monitor and timely handle difficulties, problems of credit institutions in the course of implementing the credit programs and policies under directions of Government and the Prime Minister, such as: Credit policies for agriculture, rural areas; the loaning policies for catfish livestock; support policies with the aim to reduce post-harvest losses for agricultural products, aquatic products; loans for purchase and temporary storage of food, coffee, and so on; timely handle difficulties and problems arising to facilitate for credit institutions in expending credit provision effectively for these sectors and fields.

c) To organize effective implementation of solutions to handle bad debts according to Scheme on handling of bad debts of system of credit institutions promulgated together with Decision No. 843/QD-TTg; expeditiously finish formulation of guiding documents to create synchronous legal framework for operation of the Asset management Company for credit institutions of Vietnam and early put the Company into operation aiming to push up handling of bad debts, make capital flow ready for credit institutions.

d) To manage the exchange rate flexibly, ensure stabilization of value of Vietnam money; perform synchronous measures to improve the international payment balance, increase state foreign exchange reserves and stabilize the foreign exchange market. To inspect, examine, supervise closely compliance of provisions of SBV about termination of mobilization and provision of loans in gold, to make finalization of balance from mobilizing capital in gold; to carry out roadmap of making finalization of balances from providing loans in gold and keeping gold for clients of credit institutions, drastically handle strictly credit institutions failing to comply with regulation of SBV.

d) To carry out drastically and effectively plan on inspection in 2013 aiming to contribute in support for process of restructuring credit institutions and ensuring safety for system of credit institutions; to strengthen inspection, examination and supervision of currency mark, banking activities and gold trading activities; control strictly operational quality and financial situation of credit institutions aiming to timely detect risks, violations of law, handle strictly violations as prescribed by law.

e) To organize drastically and synchronously restructure of credit institutions in 2013, concurrently supervise strictly weak credit institutions, formulate and carry out plans on restructure already approved by competent authorities; proactively carry out formulation of legal documents on currency and banking operation aiming to support for process of restructuring system of credit institutions, create legal framework for credit institutions to operate healthily and safely.

g) To further renew and enhance effectiveness of information provision and propagation of regulation of law, directions of Government and SBV about managing currency policies and banking activities aiming to orientate public opinion and consolidate belief in market.

3.2. State bank’s branches of provinces and central-affiliated cities perform tasks and solutions:

a) To proactively research, urge and guide credit institutions in geographical areas to perform solutions on currency, credit and banking operation aiming to contribute in effective implementation of targets including restrain of inflation, stabilization of macro economy, removing of difficulties for production and business, market support under directions of Government and SBV.

b) To sum up and monitor implementation of plan in credit growth of branches (transaction offices) of credit institutions in geographical areas on the basis of norms of credit growth assigned by headquarters of credit institutions. In case where the local credit growth demand and capability of credit expansion of branches (transaction offices) of credit institutions exceed norm of credit growth as assigned by headquarters of credit institutions, it is required to request branches of credit institutions to report to headquarters for consideration and handling.

c) To preside over organization a meeting with credit institutions and enterprises in geographical areas in order to solve difficulties, problems and suitable remedies in credit relationship. To proactively handle, under their competence, problems and comments of credit institutions and clients. To proactively and positively consult with executive committees and local authorities in directing local agencies and proposing to competent authorities for handling of relevant problems so as to support for removing difficulties in credit relationship between credit institutions and clients, such as completing legal procedures for grant of certificate of land use right, acceptance for handing over and payment of finished facilities, supporting for handling of collateral, registration of guarantee transactions, procedures for notarization…

d) To strengthen examination, inspection and supervision over credit institutions in their localities involving compliance with regulation of SBV on currency, exchange rate, foreign exchange, gold, interest rate, collection of charges, credit and prevention against money laundering… To handle under their competence over violations of credit institutions in geographical areas.

dd) To advise and help the Governor of the State bank of Vietnam in carrying out, directing, guiding solutions of restructuring credit institutions in their localities such as participating in plans on restructuring weak credit institutions and supervising implementation of plans on restructure; directing, guiding restructure of the People’s Credit Fund.

e) To proactively propagate, popularize provisions of law, guidelines as directed by Government and SBV for enterprises and people to understand and perform in accordance with provisions of law on currency and banking operation, concurrently regularly report implementation in their localities to SBV. To further strengthen operation of National Assembly in their localities, positively participate in meeting voters and timely make explanation on problems involving solutions of currency policies and banking operation to which deputies of National Assembly and voters pay attention.

4. Organization of implementation:

4.1. This Directive takes effect on the day of its signing.

4.2. The Chief of office, the Director of the monetary policy department and heads of units under SBV, Directors of State bank’s branches of provinces, central-affiliated cities, chairmen of Board of Directors, chairmen of Member assemblies and General Directors (Directors) of credit institutions, foreign banks’ branches shall implement this Directive.