Press Release on issuance of Circular No.18/2019/TT-NHNN
Hanoi, November 4, 2019 – The Governor of the State Bank of Vietnam (SBV) issued Circular No. 18/2019/TT-NHNN amending and supplementing a number of articles of Circular No.43/2016/TT-NHNN dated December 30, 2016 regulating the consumer loans provided by finance companies.
The new Circular takes effect from January 1, 2020 and is composed of 3 Articles with the main substances as follows:
- First, the new Circular supplements a regulation on lendings disbursed directly to borrowers (including direct disbursements in cash and/or through the use of non-cash payment services) in order to encourage the diversification of consumer loans, mitigate risks, ensure safe and sound consumption lendings by finance companies.
- Second, the new Circular amends and supplements a regulation on measures of supervising and controlling the collection of debts to limit complaints about improper debt collection practices conducted by finance companies.
- Third, the new Circular supplements several regulations aiming at enhancing the responsibilities of finance companies in the process of extending credit (including the responsibilities for the transparency of the interest rates and fees; responsibilities for addressing and answering complaints from the relevant customers, institutions and individuals).
- Fourth, the new Circular supplements a regulation on the responsibilities of the Banking Supervision Agency, the SBV provincial and municipal branches in monitoring, supervising and inspecting the lending activities for consumption by finance companies or their branches/representative offices/booths involved in introducing the finance companies’ services in order to enhance the management, supervision and inspection of consumer loans provided by the finance companies.
Translated by Le Hang