The Governor of the State Bank of Vietnam (SBV) issued Circular No.39/2016/TT-NHNN on December 30, 2016 to promulgating regulations on lending activities of credit institutions and foreign bank branches. The Circular replaces Regulations on lending activities of credit institutions as stipulated in Decision No.1627/2001/QD-NHNN dated December 31, 2001 and a number of relevant documents.
The Circular stipulates common legal framework for lending activities of credit institutions and foreign bank branches (herein after called as credit institutions) to their customers (who are not credit institutions) in accordance with 2010 Law on Credit Institutions, 2015 Civil Codes and other applicable regulations concerning with lending activities and development trend of lending activities towards international practices, thereby meeting state management requirements for lending activities of credit institutions and improving the transparency of lending activities.
The Circular includes 3 Chapters and 35 Articles as follows:
- Chapter I: General provisions including 26 Articles stipulates: governing scope, implementers, principles of providing loans and borrowing, borrowing conditions, capital demands which are not eligible for lending, dossiers, types of loans, currencies used for lending and borrowing, debt payment, lending limitations and interest rates, lending fees, collateral security, information provision, assessment and lending approval, debt refund and debt payment reschedule, overdue debt management, debt resolution, exemption and exemption and reduction of interest rates and fees, internal regulations, lending agreement, monitoring capital utilization, violation resolution,…
- Chapter II: Specific provisions including 6 Articles divided into 2 Items: Item 1 stipulates specifically lending activities for business purpose; Item 2 stipulates lending activities for living demands; regulations on lending methods and duration, and lending dossier archives.
- Chapter III: Implementers including 3 Articles stipulates effectiveness, transitional regulations and implementation.
The Circular will take effect from March 15, 2017.