Circular 59/2024/TT-NHNN amend Circular 12/2021/TT-NHNN prescribing purchase and sale of deposit certificates and bonds

CIRCULAR

Amending and supplementing a number of articles of the Governor of State Bank of Vietnam’s Circular No. 12/2021/TT-NHNN of July 30, 2021, providing the purchase and sale by credit institutions and foreign bank branches of promissory notes, treasury bills, deposit certificates and bonds issued domestically by other credit institutions and foreign bank branches^[1]

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

Pursuant to the January 18, 2024 Law on Credit Institutions;

Pursuant to the November 26, 2019 Law on Securities; and the November 29, 2024 Law Amending and Supplementing a Number of Articles of the Law on Securities, Law on Accounting, Law on Independent Audit, Law on the State Budget, Law on Management and Use of Public Assets, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Handling of Administrative Violations;

Pursuant to the Government’s Decree No. 102/2022/ND-CP of December 12, 2022, 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 amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 12/2021/TT-NHNN of July 30, 2021, providing the purchase and sale by credit institutions and foreign bank branches of promissory notes, treasury bills, deposit certificates and bonds issued domestically by other credit institutions and foreign bank branches (below referred to as Circular No. 12/2021/TT-NHNN).

Article 1. To amend and supplement a number of articles of Circular No. 12/2021/TT-NHNN

1. To amend and supplement Clause 1, Article 2 as follows:

“1. Credit institutions and foreign bank branches established and operating in accordance with the Law on Credit Institutions, including commercial banks, cooperative banks, non-bank credit institutions, and foreign bank branches (below collectively referred to as credit institutions and foreign bank branches).”

2. To amend and supplement Clause 1, Article 3 as follows:

“1. Credit institutions and foreign bank branches may purchase and sell valuable papers as permitted by law and stated in establishment and operation licenses of credit institutions or establishment licenses of foreign bank branches granted by the State Bank of Vietnam (below referred to as Licenses) as follows:

a/ Credit institutions (except those specified at Point b of this Clause) and foreign bank branches may purchase and sell deposit certificates when their Licenses have contents on purchase and sale of other valuable papers; and may purchase and sell bonds domestically issued by other credit institutions when their Licenses have contents on purchase and sale of corporate bonds;

b/ Specialized finance companies may purchase and sell deposit certificates when their Licenses have contents on purchase and sale of deposit certificates domestically issued by credit institutions and foreign bank branches.”

3. To amend and supplement Clause 5, Article 3 as follows:

“5. Credit institutions and foreign bank branches (except specialized finance companies) shall purchase and sell bonds domestically issued by other credit institutions in accordance with the Law on Credit Institutions, the Law on Securities, the Government’s Decree on issuance of corporate bonds, other documents guiding the Law on Securities, relevant regulations, and this Circular.”

4. To amend and supplement Clause 8, Article 3 as follows:

“8. For valuable papers issued by general finance companies and specialized finance companies, credit institutions and foreign bank branches may only purchase or sell them from/to organizations (including also credit institutions and foreign bank branches).”

Article 2. To annul a phrase in Circular No. 12/2021/TT-NHNN

To annul the phrase “promissory notes, treasury bills” in Circular No. 12/2021/TT-NHNN (except Clause 2, Article 6) and in the title of the Circular.

Article 3. Responsibility for organization of implementation

The Chief of the Office, the Director of the Monetary Policy Department, and heads of the units of the State Bank of Vietnam; and credit institutions and foreign bank branches shall organize the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect on March 15, 2025.

2. The purchase and sale by credit institutions and foreign bank branches of promissory notes and treasury bills issued before the effective date of the 2024 Law on Credit Institutions shall be carried out as the purchase and sale of deposit certificates in accordance with Circular No. 12/2021/TT-NHNN, which is amended and supplemented under this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
PHAM THANH HA