Thông tư 11/2011/TT-NHNN

CIRCULAR

PROVIDING FOR THE TERMINATION OF MOBILIZATION AND PROVISION OF LOANS IN GOLD BY CREDIT INSTITUTIONS

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

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

- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Implementing the Resolution No. 11/NQ-CP dated 24 February 2011 of the Government on main solutions focusing on restriction of inflation, stabilizing macro-economy, ensuring social security;

The State Bank of Vietnam hereby provides for the termination of mobilization and provision of loans in gold by credit institutions, foreign bank's branches (hereinafter shortly referred to as credit institutions) as follows:

Article 1. Credit institutions shall not be authorized to provide loans in gold to customers and other credit institutions (including any credit contract that has already been signed but not disbursed yet or not fully disbursed yet); not to deposit gold at other credit institutions; not to perform entrustment, investment operations and other forms of credit extension in gold.

Article 2. Credit institutions shall not be authorized to mobilize capital in gold, except for the case of issuing short term certificates in gold for gold payment upon request of the customers in the event where the amount of debt collection in gold and cash in vault is not sufficient for making payment. The issuance of short term certificates in gold by credit institutions shall be terminated on 01 May 2012.

Article 3. Credit institutions shall not be authorized to convert their fund previously mobilized in gold to Vietnamese dong and other forms in cash. For the fund in gold that has already been converted to cash, it shall be subject to final settlement on 30 June 2011 at the latest.

Article 4. Responsibilities of institutions

1. For credit institutions: To send report on the mobilization and provision of loans in gold in line with Appendix 01, Appendix 02, Appendix 03 and Appendix 04 of this Circular; to supply related information upon request by the State Bank of Vietnam from time to time.

2. For State Bank's branches in provinces, cities under the central Government's management:

a. To inspect, examine the termination of mobilization and provision of loans in gold by credit institutions in the local area, to deal with acts of violation within the scope of competence.

b. To send report on the situation of mobilization and provision of loans in gold by credit institutions in line with Appendix 05 of this Circular; to report and propose the Governor of the State Bank to handle any difficulties, queries relating to the termination of mobilization and provision of loans in gold by credit institutions in the local area.

3. For the Banking Inspection and Supervision Department: To supervise, inspect, examine the termination of mobilization and provision of loans in gold by credit institutions in accordance with provisions of this Circular; to deal with cases of violation within the scope of competence; to report and propose the Governor of the State Bank to handle any difficulties, queries relating to the termination of mobilization and provision of loans in gold by credit institutions.

Article 5. Implementation organization

1. This Circular shall be effective from 01 May 2011.

2. The Circular No. 22/2010/TT-NHNN dated 29 October 2010 of the Governor of the State Bank providing for the mobilization and provision of loans in gold by credit institutions shall expire.

3. The Director of the Administrative Department, Director of the Monetary Policy Department and Heads of units of the State Bank of Vietnam; Managers of the State Bank’s branches in provinces and cities under the central Government’s management; Chairman of Board of Directors and General Directors (Directors) of credit institutions, and related organizations, individuals shall be responsible for the implementation of this Circular.

APPENDIX 01

Name of CI: ……………………

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD

Month…. year….

Instructions for preparation and sending of report:

- Average interest rate for fund mobilization, average interest rate for loans shall be calculated under the weighted average method.

- Average term for fund mobilization stated in the gold mobilization certificate shall be calculated under the weighted average method.

- Average term for loan stated in the loan agreement shall be calculated under the weighted average method.

- To specify other purposes in item 5.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: [email protected]).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- Clearly state full name and contact number of the person in charge of answering report's details upon request of SBV..

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 02

Name of CI: …………………….

SITUATION OF LENDING IN GOLD

Month… year …..

Unit: gold tael, VND billion

Instructions for preparation and sending of report:

- To specify other purposes in item 6.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: [email protected]).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- Clearly state full name and contact number of the person in charge of answering report's details upon request of SBV.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 03

Name of CI: …………..

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD BY THE REMAINING PERIOD

Month… year …

Unit: gold tael, VND billion, month

Instructions for preparation and sending of report:

- The remaining period of fund mobilization in gold up to the end of the reporting month shall be calculated as the period stated in the certificate of fund mobilization in gold minus the period already mobilized.

- The remaining period of loan in gold up to the end of the reporting month shall be calculated as the period of the loan stated in the loan agreement minus the period already lent.

- Norms in item 3 shall be calculated under the weighted average method.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: [email protected]).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 04

Name of CI: ………….

REPORT ON THE MOBILIZATION AND PAYMENT IN GOLD

Month … year ….

Unit: gold tael, VND billion

Instructions for preparation and sending of report:

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: [email protected]).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 05

SBV's branch in province, city: …………

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD BY CREDIT INSTITUTIONS IN THE LOCAL AREA

Month… year…

Unit: gold teal, VND billion

Instructions for preparation and sending of report:

- Report making unit: State Bank's branches in provinces, cities under the central Government's management.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: [email protected]).

- Reporting deadline: On the 15th of the month consecutively following the reporting month at the latest.

- Clearly state full name and contact number of the person in charge of answering report's details upon request of SBV..

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.