Circular No. 12/2012/TT-NHNN dated April 27, 2012 of the State Bank of Vietnam amending and supplementing some articles of the Circular No. 11/2011/TT-NHNN Dated april 29, 2011 of Governor of State Bank of Vietnam on termination of mobilization and loan in gold of credit organization

THE STATE BANK OF VIETNAM

Circular No. 12/2012/TT-NHNN of April 27, 2012, amending and supplementing a number of articles of the State Bank Governor’s Circular No. 11/2011/TT-NHNN of April 29, 2011, on termination of mobilization and lending 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;

In furtherance of the Government’s Resolution No. 01/NQ-CP of January 3, 2012, on major solutions to administering the implementation of the socio-economic development plan and the state budget estimate of 2012;  and Resolution No. 11/NQ-CP of February 24, 2011, on major solutions to controlling inflation, stabilizing macro-economy and assuring social security;

At the proposal of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates this Circular, amending and supplementing a number of articles of the State Bank Governor’s Circular No. 11/2011/TT-NHNN of April 29, 2011, on termination of mobilization and lending in gold by credit institutions.

Article 1. To amend and supplement a number of articles of Circular No. 11/2011/TT-NHNN as follows:

1. To amend and supplement Article 2 as follows:

“Article 2.

Credit institutions may not mobilize capital in gold, unless they issue short-term gold certificates to pay gold at the request of customers when the amounts of debts collected in gold and in vault are insufficient for such payment. The issuance of short-term gold certificates by credit institutions must terminate on November 25, 2012.”

2. To amend and supplement Article 3 (which was amended and supplemented under the State Bank Governor’s Circular No. 32/2011/TT-NHNN of October 6, 2011) as follows:

“Article 3.

Credit institutions may neither convert capital mobilized in gold into Vietnam dong and other monetary forms nor use mobilized gold for pledge, mortgage or escrow to secure the loan payment obligation at other credit institutions.”

3. To amend and supplement Article 4 (which was amended and supplemented under the State Bank Governor’s Circular No. 32/2011/TT-NHNN of October 6, 2011) as follows:

“Article 4. Responsibilities of institutions:

1. Credit institutions:

a/ To work out a roadmap and plan to terminate the mobilization in gold on November 25, 2012, and submit them to the State Bank of Vietnam (the Foreign Exchange Management Department and the Banking Supervisory Agency) for supervision of their implementation;

b/ Credit institutions that have converted gold into cash under the State Bank Governor’s Circular No. 32/2011/TT-NHNN of October 6, 2011, shall liquidate all of such converted gold and close gold accounts overseas according to the State Bank of Vietnam’s notice;

c/ On every Monday, to send reports on their mobilization and lending in gold (made according to Appendices Nos. 1, 2, 3 and 4 to this Circular, not printed herein) to the State Bank of Vietnam (the Foreign Exchange Management Department, the Banking Supervisory Agency and State Bank branches of provinces or cities in which they are headquartered);

d/ To provide relevant information at the request of the State Bank of Vietnam in each period.

2. The Foreign Exchange Management Department: To monitor, summarize and propose measures to handle the mobilization and lending in gold by credit institutions to the Governor of the State Bank of Vietnam for decision.

3. The Banking Supervisory Agency: To supervise, inspect and examine the termination of mobilization and lending in gold by credit institutions under this Circular; to handle violations according to its competence; to report on, and propose the Governor of the State Bank of Vietnam to settle, problems arising from the termination of mobilization and lending in gold by credit institutions.

4. Provincial-level branches of the State Bank of Vietnam:  To inspect and examine the termination of mobilization and lending in gold by credit institutions in their localities and handle violations according to their competence; to report on, and propose the Governor of the State Bank of Vietnam to settle, problems arising from the termination of mobilization and lending in gold by credit institutions in their localities.”

Article 2. Organization of implementation

1. This Circular takes effect on April 30, 2012.

2. Circular No. 32/2011/TT-NHNN of October 6 2011, amending and supplementing a number of articles of the State Bank of Vietnam’s Circular No. 11/2011/TT-NHNN of April 29, 2011, on termination of mobilization and lending in gold by credit institutions is no longer effective.

3. The director of the Office, the Chief Inspector-Supervisor, heads of units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam; chairpersons of boards of directors or member councils and directors general (directors) of credit institutions, and related persons and organizations shall implement this Circular.-

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