Circular No. 11/2011/TT-NHNN dated April 29, 2011 of the State Bank of Vietnam providing for termination of gold deposit mobilization and gold lending of the credit institutions

THE STATE BANK OF VIETNAM

Circular No. 11/2011/TT-NHNN of April 29, 2011, on termination of mobilization of deposits and provision of loans in gold by credit institutions

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

Pursuant to June 16, 2010 Law No. 47/2010/QH12 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;

Pursuant to the Government’s Resolution No. 11/NQ-CP of February 24, 2011, on major solutions to controlling inflation, stabilizing macro-economy and assuring social security;

The State Bank of Vietnam provides for the termination of  the mobilization of deposits and provision of loans in gold by credit institutions and foreign bank branches (below referred to as credit institutions) as follows:

Article 1. Credit institutions are not allowed to provide loans in gold to customers and other credit institutions (including credit contracts already signed but not yet disbursed or fully disbursed), make gold deposits at other credit institutions, and conduct trust and investment operations and other forms of loan provision in gold.

Article 2. Credit institutions are not allowed to mobilize deposits in gold, unless they issue certificates of short-term deposits in gold to make gold payment at the request of customers when amounts of gold collected as loan repayments and in storage are insufficient for payment. The issuance of these certificates by credit institutions must be terminated on May 1, 2012.

Article 3. Credit institutions are not allowed to convert previously mobilized deposits in gold into Vietnam dong and other monetary forms. Deposits in gold which have been previously converted into cash must be fully liquidated by June 30, 2011, at the latest.

Article 4. Responsibilities of institutions

1. For credit institutions: To send report on the mobilization of deposits and provision of loans in gold according to Appendices 1 thru 4 to this Circular (not printed herein); and to provide relevant information at the request of the State Bank of Vietnam in each period.

2. For provincial-level branches of the State Bank of Vietnam:

a/ To inspect and examine the termination of the mobilization of deposits and provision of loans in gold by credit institutions in their localities and handle violations under their competence.

b/ To send reports on the mobilization of deposits and provision of loans in gold by credit institutions according to Appendix 5 to this Circular (not printed herein); and report on and propose the Governor of the State Bank of Vietnam to handle problems arising from the termination of the mobilization of deposits and provision of loans in gold by credit institutions in their localities.

3. For the Banking Inspection and Supervision Agency: To supervise, inspect and examine the termination of the mobilization of deposits and provision of loans in gold by credit institutions under this Circular; handle violations under its competence; report on and propose the Governor of the State Bank of Vietnam to handle problems in the termination of the mobilization of deposits and provision of loans in gold by credit institutions.

Article 5. Organization of implementation

1. This Circular takes effect on May 1, 2011.

2. The State Bank Governor’s Circular No. 22/2010/TT-NHNN of October 29, 2010, providing for the mobilization of deposits and provision of loans in gold by credit institutions is no longer effective.

3. The director of the Office, the director of the Monetary Policy Department, the heads of the units of the State Bank of Vietnam, the directors of the provincial-level branches of the State Bank of Vietnam; chairpersons of boards of directors and directors general (directors) of credit institutions, and related individuals and organizations shall implement this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
NGUYEN DONG TIEN