Circular 16/2021/TT-NHNN prescribing the purchase and sale of corporate bonds by credit institutions and foreign bank branches

CIRCULAR

Providing the purchase and sale of corporate bonds by credit institutions and foreign bank branches^[1]

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

Pursuant to the June 16, 2010 Law on Credit Institutions and the November 20, 2017 Law on Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the November 26, 2019 Law on Securities;

Pursuant to the June 17, 2020 Law on Enterprises; 

Pursuant to the Government’s Decree No. 153/2020/ND-CP of December 31, 2020, on private placement of corporate bonds and trading of privately placed corporate bonds in the domestic market and offering of corporate bonds to the international market;

Pursuant to the Government’s Decree No. 155/2020/ND-CP of December 31, 2020, detailing the implementation of a number of articles of the Law on Securities;

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

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

The Governor of the State Bank of Vietnam promulgates the Circular providing the purchase and sale of corporate bonds by credit institutions and foreign bank branches.

Article 1. Scope of regulation

1. This Circular provides the purchase and sale of corporate bonds by credit institutions and foreign bank branches in the territory of the Socialist Republic of Vietnam.

2. This Circular does not regulate the purchase and sale of bonds issued by credit institutions; purchase and sale of bonds issued by the Vietnam Asset Management Company; purchase of corporate bonds in the form of discount; definite-term purchase and sale of corporate bonds among credit institutions and foreign bank branches themselves; purchase and sale of corporate bonds issued on the international market; and purchase and sale of corporate bonds in the form of rediscount.

3. The purchase and sale of corporate bonds by credit institutions placed under special control must comply with the State Bank of Vietnam’s decision applicable to each of such credit institutions.

4. The purchase and sale of corporate bonds between credit institutions placed under special control and supporting credit institutions must comply with approved plans on recovery of credit institutions placed under special control.

Article 2. Subjects of application

1. Credit institutions and foreign bank branches (below collectively referred to as credit institutions) established and operating in accordance with the Law on Credit Institutions (which was revised).