Press release on issuance of Circular No. 16/2022/TT-NHNN
Hanoi, November 30, 2022 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 16/2022/TT-NHNN stipulating the depository and the use of valuable papers at the SBV.
The new Circular is comprised of 03 Chapters, 22 Articles, and shall replace Circular No.04/2016/TT-NHNN dated April 15, 2016 stipulating the depository and the use of valuable papers at the SBV. The issuance of the new Circular is aimed at: i) simplifying the dossiers for opening a depository account with valuable papers at the SBV; ii) supplementing the subjects of application to include a number of valuable papers accepted to be deposited, and new operations related to the use of valuable papers at the SBV; iii) adjusting a number of substances to be aligned with the relevant applicable laws.
The key changes as compared to Circular No.04/2016/TT-NHNN dated April 15, 2016 are:
1. Regarding the subjects of application: the new Circular has added the Deposit Insurance of Vietnam as another entity that can deposit and use valuable papers at the SBV.
2. The new Circular has also supplemented several types of valuable papers which are accepted to be deposited and used at the SBV, including the bonds issued by the credit institutions (except for the commercial banks subject to mandatory acquisition and the credit institutions under the special control measures), and other businesses.
3. The new Circular has supplemented several operations regarding the use of valuable papers at the SBV, such as pledging, escrow of valuable papers to establish the central payment limits, the electronic clearing limits, and the special lending.
4. Regarding the dossiers for opening a depository account with valuable papers at the SBV, it is stipulated in the new Circular that depositors shall not have to submit any documents which have already been submitted when opening a payment account at the SBV.
The credit institutions, the foreign bank branches and the member institutions as stipulated in this Circular, which already have depository accounts with valuable papers at the SBV, are allowed to continue to use these accounts. All transactions related to the valuable papers, which are made before the effective date of the new Circular, shall continue to be done in line with the signed arrangements between the parties.
The new Circular will take effect on January 17, 2023.
Translated by Le Hang