Circular 14/2016/TT-NHNN amend Circular 30/2014/TT-NHNN on entrustment and entrustment taking by foreign bank branches

CIRCULAR

On amending and supplementing a number of articles of Circular No. 30/2014/TT-NHNN dated November 06, 2014 of the Governor of the State Bank of Vietnam, on entrustment and entrustment taking by credit institutions and foreign bank branches and repealing a number of articles of the Regulation on factoring activity of credit institutions issued together with of the Decision No. 1096/2004/QD-NHNN dated September 06, 2004 of the Governor of the State Bank of Vietnam

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

Pursuant to the Law No. 47/2010/QH12 on Credit Institutions dated June 16, 2010;

Pursuant to the Law No. 67/2014/QH13 on Investment dated November 26, 2014;

Pursuant to the Government’s Decree No. 156/2013/ND-CP dated November 11, 2013, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam promulgates the Circular on amending and supplementing a number of articles of Circular No. 30/2014/TT-NHNN dated November 06, 2014 of the Governor of the State Bank of Vietnam, on entrustment and entrustment taking by credit institutions and foreign bank branches (Circular No. 30/2014/TT-NHNN) and repealing a number of articles of the Regulation on factoring activity of credit institutions issued together with of the Decision No. 1096/2004/QD-NHNN dated September 06, 2004 of the Governor of the State Bank of Vietnam (Decision No. 1096/2004/QD-NHNN).

Article 1. Amending and supplementing a number of articles of the Circular No. 30/2014/TT-NHNN

1. To add Clause 11 to Article 4 as follows:

“11. Credit institutions or foreign bank branches who receive capital entrusted by organizations and individuals for investment in projects of production and business, provision of a financial leasing or lending must ensure that at the time of entrustment, the entrusting party has no outstanding balance of loans at credit institutions or foreign bank branches.

2. To repeal Article 8.

Article 2. Repealing a number of articles of the Regulation on factoring activity of credit institutions issued together with of the Decision No. 1096/2004/QD-NHNN

To repeal Section 1 Chapter II of the Regulation on factoring activity of credit institutions issued together with of the Decision No. 1096/2004/QD-NHNN.

Article 3. Effect

1. This Circular takes effect on July 01, 2016.

2. To repeal Clause 3 Article 1 of the Decision No. 30/2008/QD-NHNN dated October 16, 2008 of the Governor of the State Bank of Vietnam, on amending and supplementing a number of articles of the Regulation on factoring activity of credit institutions issued together with of the Decision No. 1096/2004/QD-NHNN dated September 06, 2004 of the Governor of the State Bank of Vietnam.

Article 4. Implementation organization

The Chief of the Office, the Chief of the Banking Supervision Agency,  heads of units of the State Bank, Directors of the State Bank branches of provinces and centrally-run cities, Chairpersons of the Boards of Directors or Chairpersons of the Members’ Councils, Directors General (Directors) of credit institutions, foreign bank branches shall implement this Circular./.