Circular No. 18/2019/TT-NHNN dated November 04, 2019 of the State Bank of Vietnam on amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans

CIRCULAR

On amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans

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

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to the Law amending and supplementing a number of Articles of 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;

Pursuant to the Government’s Decree No. 39/2014/ND-CP dated May 07, 2014 on the operation of financial company and financial leasing company;

Pursuant to the Government’s Decree No. 16/2019/ND-CP of February 01, 2019 on amending and supplementing Decrees on business conditions under the state management of the State Bank of Vietnam;

At the request of the Chief of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby promulgates a Circular amending and supplementing a number of Articles of the Circular No.43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam on consumer loans of financial companies.

Article 1. Amending and supplementing a number of articles of Circular No.43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam providing for consumer loans by financial companies (hereinafter referred to as Circular No. 43/2016/TT-NHNN)

1. Point b, Clause 2, Article 3 is amended and supplemented as follows:

“b) Expenses for study, medical examination and treatment, tourism, culture, physical training and sports;”.

2. To add Clause 5 into Article 3 as follows:

“5. Direct disbursement to customers means that financial companies disburse consumer loans directly to customers in cash or through the use of non-cash payment services as mutually agreed upon in consumer loan contract, ensuring inspection and supervision of the purposes of loan use in accordance with law”.

3. Article 4 is amended and supplemented as follows:

“Article 4. Application of legal documents

1. Other provisions on lending related to consumer lending activities of financial companies are not provided for in this Circular, financial companies shall comply with the provisions on lending activities serving life demands in accordance with provisions of the State Bank on lending activities of credit institutions, foreign bank branches to customers.

2. The direct disbursement to customers shall comply with the provisions of this Circular.”.

4. Clause 2, Article 5 is amended and supplemented as follows:

“2. Financial companies shall manage, supervise and make statistics on consumer lending activities separate from other lending activities of financial companies, separating consumer loans directly disbursed to customers from other disbursement methods for consumer loans”.

5. Clause 4, Article 6 is amended and supplemented as follows:

“4. Financial companies shall report to the State Bank according to the following provisions:

a) When there is a change in the manager or supervisor of the service introduction points, the financial companies shall report to the State Bank branch in the province or city where the service introduction point is located, according to the following provisions:

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