Chỉ thị 05/2008/CT-NHNN

DIRECTIVE

ON SEVERAL MEASURES OF ENSURING THE PRUDENTIAL, EFFECTIVE OPERATION OF CREDIT INSTITUTIONS

Currently, the entire banking industry is operating in accordance with the Government's policy on restraining inflation, stabilizing macro-economy, ensuring social security and sustainable growth. However, since the middle of September 2008, development of the financial, credit crisis in the United States has become complicated, causing certain effect to the economy and operation of Vietnam's credit institutions. In order to ensure the prudential, effective operation in the final months of the year 2008 and early 2009, Governor of the State Bank requires credit institutions to implement some of following measures:

1. To closely follow up changes and forecast effects of the financial, credit crisis in the United States on the world economy and financial market and possible impacts on the economy, monetary market and banking activity in Vietnam for actively taking measures for prevention from potential risks.

2. To set up operation and business plan, to continue intensifying the capital mobilization and credit growth for the economy at the reasonable interest rates, at the same time, to ensure the payment capacity for spending demands, especially in 2009 Western New Year and New Year Festival.

3. To closely control credit qualify; in which, to carry out the analysis, assessment, classification of real estate loans for working out solutions suitable with each borrower; to continue increasing credit extension for area of exportation, rural agriculture, national key projects, demands for efficient production capital, to pay attention to expanding the provision of loans to small and medium sized enterprises, provided that those loans can satisfy conditions as provided for by applicable laws and ability of capital balance of credit institutions

4. To correctly comply with provisions on prudential ratios in operation of credit institutions in the Decision No. 457/2005/QD-NHNN dated 19 April 2005 of Governor of the State Bank and the Decision No. 03/2007/QD-NHNN dated 19 January 2007 of Governor of the State Bank on the amendment, supplement of several articles of the Regulation on prudential ratios in operation of credit institutions, issued in conjunction with the Decision No. 457/2005/QD-NHNN Decision No. 1328/2005/QD-NHNN dated 6 September 2005 on the issuance of the Regulation on prudential ratios in operation of local People's Credit Funds and other related legal documents.

5. To check, correct and complete internal processes on credit activity, monetary and foreign exchange trading, payment, money remittance, information technology application in line with related provisions of applicable laws. To assess potential risks in each operation process for immediately implementing risk settlement and preventive measures.

6. To timely make report on difficulties, queries related to business activity to State Bank of Vietnam for consideration and settlement; to supply information and make report on monetary, credit and banking activity timely and accurately in accordance with provisions of the State Bank of Vietnam.

7. Organization of implementation:

a. This Directive shall be effective after 15 days since its publication in Official Gazette.

b. Director of Administrative Department, Director of Monetary Policy Department and Heads of units of the State Bank, Managers of State Bank branches in provinces, cities under the central Government's management; Board of Directors and General Directors (Directors) of credit institutions shall be responsible for implementation of this Directive.

c. Administrative Department shall take the lead and coordinate with related Departments to examine and speed up the implementation of this Directive, to follow up and summarize implementation results, on weekly basis, for reporting to the State Bank's Governor.