Circular No. 15/2018/TT-NHNN dated June 18, 2018 of the State Bank of Vietnam on amending the Circular No. 22/2016/TT-NHNN dated June 30, 2016 of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks

THE STATE BANK OF VIETNAM

Circular No.15/2018/TT-NHNN dated June 18, 2018 of the State Bank of Vietnam on amending the Circular No. 22/2016/TT-NHNN dated June 30, 2016 of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on credits, institutions dated June 16, 2010;

Pursuant to the Law on amendments to the Law on credit institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam promulgates a Circular providing amendments to the Circular No. 22/2016/TT-NHNN dated June 30, 2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks.

Article 1. To amend the Circular No. 22/2016/TT-NHNN

1.To amend Point d and add Point dd to Clause 2 Article 3:

“d) Regulations on internal control of purchase of corporate bonds, especially bonds issued for implementation of programs/ projects in sectors posing potential risks according to the evaluation by credit institutions/ branches of foreign banks so as to discover risks or violations and ensure the recovery of corporate bond principals and interests;

dd) Specific regulations on sectors posing potential risks and credit/ investment policies in these sectors.”

2.To add the Clause 6 to Article 3:

“6. Credit institutions and branches of foreign banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer.”

Article 2.To annul theArticle 4 of Circular No. 22/2016/TT-NHNH.

Article 3. Implementation organization

Chief of the Ministry’s Office, the Director of the Monetary Policy Department, Heads of units affiliated to the State Bank of Vietnam, Directors of branches of the State Bank of Vietnam in provinces and central-affiliated cities, Chairpersons of the Boards of Directors, Chairpersons of the Boards of Members and General Directors (Directors) of credit institutions and branches of foreign banks shall implement this Circular.

Article 4. Effect

1.This Circular takes effect on August 02, 2018.

2.With regard to contracts for purchase of corporate bonds entered into before the date of entry into force of this Circular, credit institutions, branches of foreign banks and customers shall continue performing contents of such contracts or make adjustments to such contracts in conformity with regulations herein./.

For the Governor

The Deputy Governor

Nguyen Thi Hong