Circular 01/2015/tt-Nhnn: Regulation Of Business Activities, Provision Of Derivative Interest Rate Of Commercial Banks, Foreign Bank Branches

Original Language Title: Thông tư 01/2015/TT-NHNN: Quy định hoạt động kinh doanh, cung ứng sản phẩm phái sinh lãi suất của ngân hàng thương mại, chi nhánh ngân hàng nước ngoài

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STATE BANK
Number: 01 /2015/TT-NHNN
THE SOCIALIST REPUBLIC OF VIETNAM.
Independence-Freedom-Happiness
Hanoi, January 6, 2015

IT ' S SMART

Business activity regulation, interest yield derivative products

of the commercial bank, the bank branch of the country. i

____________________

Vietnam State Bank Law School No. 46 /2010/QH12 June 16, 2010;

The Code of Credit: 47 /2010/QH12 June 16, 2010;

Base of Protocol 156 /2013/NĐ-CP November 11, 2013 the Government regulates the functions, duties, powers, and organizational structure of the State Bank of Vietnam;

On the recommendation of the Secretary of the Monetary Policy;

The Governor-General of the State Bank of Vietnam issued a business of planning business operations, offering interest rates of interest in commercial banks, foreign bank branches.

Chapter I

GENERAL REGULATION

What? 1. The adjustment range

This information regulates business operations, offering the interest derivative products of the commercial bank, the foreign bank branch.

What? 2. Subject applies

1. Commercial banks, foreign bank branches operating in business, offering interest derivatives products.

2. Customers use interest derivative products due to the commercial bank, the foreign bank branch of the business, the supply on the domestic market, including:

a) Credit Organization, foreign bank branch established and operated under the Law of Credit Organizations;

b) The legal (except for credit organization, foreign bank branch) is established and operates under the Vietnamese law.

3. organizations, individuals with regard to business activities, supply of interest derivatives products of commercial banks, foreign bank branches by regulation at this Smart.

What? 3. Explain words

In this Information, the words below are understood as follows:

1. The yield derivative product is the financial instrument that is valued according to the expected volatility of interest rates.

2. Business activity, supply of interest derivatives products is the commercial banking, foreign bank branch of the trade and implementation of interest derivatives contracts with foreign financial institutions on the international market for the purpose of defence. prevent, limiting the interest rate of the commercial bank, the foreign bank branch or the commercial banking, the foreign bank branch of the trade and the implementation of interest derivatives contracts with customers on the domestic market aims at the target. Prevention of the customer's interest rate.

3. The original transaction is the interest rate transactions, including: Submit money, receive deposits; release, purchase, purchase of valuable paper; loan, capital loans; for rent, financial leasing; other legal transactions are subject to interest rates, except for interest rate derivatives.

4. Trading deals are commercial banking, foreign bank affiliates trade and implementing interest derivatives contracts with commercial banks, foreign bank branches which supply interest derivatives products on the domestic market. or with a foreign financial institution aimed at preventing, limiting interest rates to the interest rate derivatives contract that has been engaged and made with customers.

5. The original capital value is the amount of the original transaction or the amount of interest risk derived from the balance sheet that organizes credit, the foreign bank branch needs to prevent, limiting the interest rate risk.

6. The nominal capital value is the amount that the parties of the parties contract the agreement of the agreement as the basis for charging paid, interest is received, net interest or fee (if any); nominal capital value can be equal to or less than the capital value. Original.

7. Net interest or net loss each payment of the interest rate contract is the difference between the amount of interest received and the interest payable in each of those payments.

8. Net interest or net loss of the credit organization's interest rate, the foreign bank branch is the net interest or the net loss of all the payments of that interest derivative contract.

9. The reference interest rate is the rate of interest issued by the parties to the contract interest rate to make the base for the interest rate contract.

10. Bare Limits interest rates are the highest interest rate issued by the parties to the option of selecting an agreement in order to prevent the risk of interest rates when market rates fluctuate.

11. Power interest rates on the floor limit are the lowest interest rate issued by the parties to the option of selecting the interest rate in order to prevent the risk of interest rates when market interest rates fluctuate.

12. Foreign finance organizations include commercial banks, investment banks, credit organizations and other financial institutions established and operating under foreign law.

What? 4. Principles of Business Activity, Supply of Interest Rate Derivatives

1. Business activity, offering the interest derivative products of the commercial bank, the foreign bank branch is done under the agreement between the parties to the agreement and the implementation of the interest rate derivative contract, in accordance with the regulation at the Bank Information. This is the law and the law.

2. Commercial banks, foreign bank branches are only business, offering interest derivatives products when:

a) Is approved by the State Bank of Vietnam for business operations, supply of interest derivative products at the established and operational License, or by its own writing in accordance with the rule of law;

b) enacted an internal regulatory text of business activity, supply of interest derivative products in accordance with the regulation at this Smart and relevant legislation, ensuring there is a mechanism of control, internal audits, risk management on business activity, and the management of the business. business, the yield of interest derivatives.

3. Commercial banking, foreign bank branch of business, offering interest rate derivatives related to foreign exchange must follow the regulation of Vietnamese law on foreign exchange.

4. Commercial banks, foreign bank branches of business derivatives business derivatives on the international market must follow the regulation of Vietnamese law on activity; foreign exchange on the international market.

5. The credit organization, the foreign bank branch used by the commercial bank, the foreign bank ' s branch of the foreign bank supply on the domestic market as for legal pursuits at this Smart, and the law can be found. All right.

Chapter II

BUSINESS ACTIVITY, PRODUCT DELIVERY PRODUCT

Item 1

BUSINESS ACTIVITY, OFFERING INTEREST DERIVATIVES PRODUCTS ON THE DOMESTIC MARKET IN THE COUNTRY

What? 5. The purpose of business operations, supply of interest derivatives products on the domestic market.

1. Commercial banks, foreign bank branches offering interest rates derivative products for legal purposes for prevention, limiting the interest rate risk to the root transaction of that law.

2. Commercial banking, foreign bank branch of business, supply of interest derivatives products to credit organization, other foreign bank affiliates for prevention purposes, limiting interest rates for root or prevention, restriction or prevention of interest rates, such as: Interest rates arise from the balance sheet of the credit organization, the foreign bank branch out there.

What? 6. The scope of business activity, supply of interest derivatives products on the domestic market.

The commercial bank, the foreign bank branch that is business, offers interest-rate derivatives, including:

1. Limited interest rate (Forward rate agreement): Commercial bank, foreign bank branch of the foreign bank contracts a contract derivatives contract with customers, whereby on the day the contract of the contract derivatives contract on the side of the agreement determines the rate of interest. The term will apply on the same nominal capital value; on the day to the rate of interest rate derivatives, commercial banks, foreign bank branches, or payment customers a single time the amount of difference between the term interest rate has been agreed. in the yield derivative contract with the reference interest rate on the same nominal capital value.

2. Product swaps a currency (Interest rate swap):

a) Product rate swaps a currency (Interest rate swap): Commercial bank, foreign bank branch of the foreign bank of the contract derivatives interest to the customer, in which the parties agreed to pay each other the amount of interest equal to the same. a currency (the Vietnamese or foreign currency) according to the interest rate received and must pay the agreement (fixed or float interest rate) on the same nominal capital value;

b) The cost swaps a plus currency (Accurate Interest Rate Swap): A currency swap product, in which commercial banks, foreign bank branches and customers; have agreements on the interest of being received or sold. must be paid according to the rates of interest that are accompanied by conditions based on price volatility, market interest, and the amount of the payment by the payment period on the same nominal capital value.

3. Product swaps between the two currencies or the Cross currency swap:

a) Product swap exchange rate between two currencies (Cross currency swap): Commercial bank, foreign bank branch of the contract to contract interest derivatives contracts with customers, in which the parties agreed to pay each other a profit by paying for a profit. two different currencies charged on the nominal capital value; the exchange or not exchange of nominal capital value due to either side of the agreement, the case with an initial nominal capital value exchange or partial in the period or finally, applies. are at a fixed rate of agreement in accordance with the regulation of the State Bank of Vietnam over the rate at the time the two sides signed. The rate of interest in the field.

b) The interest rate swaps between the Accidental Interest Rate Swap: Is the interest swap product between the two currencies, in which the commercial bank, the foreign bank branch, and the customer have an agreement on the amount of interest paid. receiving or having to pay is calculated according to the rates of interest that are accompanied by conditions based on price volatility, market interest, and being conjoined by the payment period agreed on the nominal capital value; the exchange or no exchange value. payment of nominal capital due to the two sides of the agreement, the case with an initial or partial nominal capital value exchange in the period or final It applies at a fixed rate, which is agreed in accordance with the regulation of the State Bank of Vietnam at the time of the two-party contracting parties.

4. Interest rate option:

a) Power Rate Option (Cap): Commercial Bank, foreign bank branch of the foreign bank contract derivatives of interest rates with customers, in which commercial banks, foreign bank branches sell to customers The right (not obligated obligation) is to be purchased with a ceiling limit on nominal capital value at the time of the pre-date period or on the long-term date of the interest rate derivative contract to prevent, limiting the risk of increased volatility rates. In the validity of the interest rate contract, when the reference interest rates increase and higher than the ceiling limit rate, if there is a request by the customer, the commercial bank, the foreign bank branch must perform payment for the customer. The amount of interest is calculated on the basis of the arbitrate between the reference rate at a ceiling rate of interest and nominal capital value; the case interest rate is lower than the ceiling limit rate, it does not yield payment between the bank. trade goods, foreign bank branches with customers on the difference between reference interest and ceiling limited interest rates. Customers must pay the fee for the commercial bank, the foreign bank branch under the agreement at the interest rate derivatives contract to purchase the ceiling limit option; this fee can pay once on trading day or multiple times in the period. Interest payments during the validity period of the contract derivatives contract by agreement at the interest rate derivatives contract;

b) Power rate option (Interest Rate Option-Floor): Bank of commerce, foreign bank branch of trade contracts derivatives interest to customers, in which commercial banks, foreign bank branches sell to customers The right (not obligated obligation) is to be purchased with an exchange rate limit on nominal capital value at the time of time to date to date or on the date of the term of the interest rate derivative contract to prevent, limiting the risk of fluctuation interest rates. In the validity of the interest rate contract, when the reference interest rates fluctuate and lower than the available limit rate, if there is a request by the customer, the commercial bank, the foreign bank branch must perform payment for the customer. The amount of interest is calculated on the basis of the arbitrate between the reference rate at the level of the floor limit rate and the nominal capital value; the rate of interest that is higher than the floor limit rate, does not give rise to payment between the bank. trade goods, foreign banking branches with customers on the difference between the reference interest and the floor limit rate. Customers must pay the fee for the commercial bank, the foreign bank branch under the agreement at the interest rate derivative contract to buy the option of the floor limited interest rate; this fee can pay once on trading day or multiple times by term. Interest payments during the validity period of the contract derivatives contract by agreement at the interest rate derivatives contract;

c) Rights of interest in a ceiling-floor (Interest Rate Option-Collar): Commercial bank, foreign bank branch of the foreign bank contract derivatives of interest rates with customers, in which commercial banks, foreign bank branches sell to the market share customer (not obligated obligation) to be purchased a ceiling limit rate, while purchasing from the right customer (not obligated obligation) is purchased the floor limit rate, on the same nominal capital value at the time of the pre-term date. or on the date of the date of the interest rate contract. In the validity of the interest rate contract, when the reference interest rates increased and higher than the ceiling rate rate, if the customer's request, the commercial bank, the foreign bank branch must perform payment for the customer. The amount of interest is charged on the basis of the arbitrate between the reference rate at a ceiling limit rate and nominal capital value; when the reference rate falls and is lower than the interest rate of the floor, if required by the commercial bank, the cost. the foreign bank branch, the customer must make payments to the commercial bank, the foreign bank branch out of the interest rate. is calculated on the basis of the difference between the reference interest rate with the floor limit rate and nominal capital value. Where interest rates are fluctuated but still within the limit between the ceiling limit rate and the floor limit rate, it does not arise from the implementation of payment between the commercial bank, the foreign bank branch with the customer. The amount of difference between the reference interest rates with a ceiling limit rate or with a floor limit rate. Customers and commercial banks, the foreign bank branch of the foreign bank agreement at the contract derivatives contract on the payout and the fee to pay.

What? 7. Conditions for customers using interest derivative products driven by the commercial bank, foreign bank branches of the business, supply on the domestic market in the country.

1. For the legal use of interest derivative products:

a) The purpose of using the yield derivative product is the prevention, which limits the interest rate risk to the root transaction of that legal;

b) The original transaction is in effect, in accordance with the business production profession and the rule of law;

c) There is financial capability at the assessment of the commercial bank, the branch of the business foreign bank, the supply of interest derivatives products to implement the payment obligation to arise when the contract of interest derivatives contracts;

d) Implemades obligations under agreement with the commercial bank, the foreign bank branch of the business, offering interest derivative products.

2. For the credit organization, the foreign bank branch uses the yield derivative product:

a) The purpose of using a yield derivative product is the prevention, which limits the interest rate risk to the original transaction or prevention, limiting the rate of interest rates that arise from the balance sheet of the credit organization, the foreign bank branch out there;

b) The original transaction is in effect, in accordance with the content and scope of activities under the provisions of the Law of Credit organizations and the regulation of the relevant law. The case of prevention, which limits the rate of interest rates that arise from the balance sheet, the credit organization, the foreign bank branch must have a prevarable method, limiting the interest rate risk by the legal representative of the credit organization, the bank branch. It's the water that's out there.

c) There is financial capability at the assessment of the commercial bank, the branch of the business foreign bank, the supply of interest derivatives products to implement the payment obligation to arise when the contract of interest derivatives contracts;

d) Implemades obligations under agreement with the commercial bank, the foreign bank branch of the foreign bank offering interest rate derivatives.

What? 8. Trading

1. Commercial banks, foreign bank branches are made trading on a trade deal with commercial banks, foreign bank branches in addition to product derivatives products in the domestic market or foreign financial institution to hedge funds in the market. prevention, the rate of interest risk for interest derivatives contracts that have provided customers on the domestic market.

2. The interest derivative products that the commercial bank, the foreign bank branch of the foreign bank, are made to deal with the trading interest of the interest rate at Article 6 of this.

3. The deadline and the value of the response transaction:

a) For the case of performing a response transaction to a contract derivative contract that the commercial bank, the foreign bank branch has provided to the customer, the deadline and the value of the trading response does not exceed the remaining deadline and the value of the transaction. the nominal capital of the contract derivatives contract;

b) For the case of performing a response transaction for from two upward rate derivative contracts, the deadline and the value of the trading response does not exceed the longest remaining period of the interest rate derivative contract and the total value of nominal capital gains. of interest rate derivatives contracts.

4. When performing an exchange of transactions with foreign financial institutions, in addition to the regulations at paragraph 2 and 3 This, the commercial bank, the foreign bank branch must implement the following regulations:

a) The implementation of the relevant regulations of the law on foreign exchange activities on the international market;

b) Done with a foreign financial institution that was rated a minimum of Baa/P-3 rating by ratings rating of Moody's Investors Service or BBB-/A-3 in terms of Standard & Poor's or BBB-/F3 ratings in terms of ratings ratings of Fitch Ratings. at the time of the rate of interest in interest derivatives, except for the case of foreign bank affiliates that carry out the transaction in response to the parent bank or with the overseas branch of the parent bank.

Item 2

BUSINESS ACTIVITY DERIVATIVES BUSINESS IN THE INTERNATIONAL MARKET

What? 9. The purpose of operating interest rates business derivatives on the international market.

1. Commercial banks, foreign bank branches are traded by interest rates on the international market on the basis of the trade and implementation of interest derivatives contracts with foreign financial institutions aimed at:

a) Prevention, which limits the rate of interest to the original transaction in effect. The original transaction must conform to the content and scope of the activities of the commercial bank, the branch of the foreign bank by the provisions of the Law of Credit organizations and the regulation of the relevant law;

b) The prevention, limiting rate of interest rates arise from the balance sheet of the commercial bank, the foreign bank branch.

2. Commercial banks, foreign bank branches that do not receive interest-funded products with foreign financial institutions on the international market in addition to this one Article.

What? 10. The range of interest rates products derivatives in the international market.

The commercial bank, the foreign bank branch, is business-based on the international market according to the provisions of this Article 6.

What? 11. Conditions on the selection of financial institutions for commercial banks, the foreign bank branch of the country ' s business derivatives business on the international market.

As the business derivatives business on the international market, the commercial bank, the foreign bank branch must perform with the foreign financial institution being ranked as a minimum credit Baa/P-3 under Moody's rating. Investors Service or BBB-/A-3 follow the rating rating of Standard & Poor's or BBB-/F3 according to Fitch Ratings ' rating rating at the time of the interest rate contract delivery, minus the case of foreign bank branch outside product business. interest rate on the international market with a parent bank or overseas branch of the parent bank.

Section 3

LIMITS ON BUSINESS ACTIVITY, SUPPLY AND USE OF INTEREST YIELD DERIVATIVE PRODUCTS.

What? 12. The limit on business activity, supply and use of interest rate derivative products.

1. Credit Organization, foreign bank branch business, supply and use of interest derivative products when the net loss of business operations, supply and use of interest derivative products does not exceed 5% of the charter capital, which is granted to the highest level. of the credit organization, the foreign bank branch. The case limits a net loss of over 5% of the charter capital, which is granted, the credit organization, the foreign bank branch that stops the delivery of new interest rate derivatives contracts, reports the State Bank of Vietnam (the Bank of Inspects, the bank oversight) of the cause of the loss, the measures and the time of remediation.

2. When there is a need to deliver new interest rate derivatives, credit organization, foreign bank branch must determine the net loss limit on business activity, supply and use of interest derivative products to make the basis of the implementation consistent with the regulation of the product. I mean, this one thing. The net loss limit on business activity, supply and use of interest derivative products is determined by total net interest and the net loss of interest rate derivatives contracts plus (+) total net interest and the net loss of interest rate derivatives contracts (+). It ' s done in fiscal year.

Section 4

INTEREST RATES, INTEREST DERIVATIVES CONTRACTS AND BUSINESS OPERATIONS RECORDS,

INTEREST RATE DERIVATIVES

What? 13. The interest rate applied in the interest rate contract

The parties agreed and pledged in the contract derivatives contract the interest rates to implement interest derivative products, ensuring consistent with the regulation of the State Bank of Vietnam on the interest rates of the original transactions at the time of the contracting parties. Yeah.

What? 14.

1. The interest rate derivative contract is established in writing, due to the parties of the agreement in accordance with the provisions at this Notice and the provisions of the relevant law, of which the minimum must have the following content:

a) Name, address of the legal representation of the parties of the contract;

b) The original transaction, the original capital value, the interest rate applied in the original transaction, the original payment schedule and interest of the original transaction;

c) The interest rates for performing interest derivative products;

d) the limit of payment, date of payment and method of interest/net loss;

The duration of the contract is the effect of the contract;

e) The rights and obligations of the parties to the contract;

g) The cases change, adjust the contract; and end the contract.

h) Processing the dispute and liquing the contract.

2. The parties may be agreed to apply the Model Agreement of the Association of Changes and Derivatives International to the condition of the contents of the interest rate derivative contract with the regulation at this level and the provisions of the relevant law.

What? 15. Business Activity Profile, Producing Interest Supply

When performing business operations, supply of interest derivatives products, commercial banks, foreign bank branches must establish and store business operations records, offering interest derivative products, including:

1. Interest in interest.

2. Other documents related to the delivery and implementation of interest derivatives contracts by the internal regulation of the commercial bank, the foreign bank branch, which is consistent with the regulation at this Smart.

Section 5

EXTRACTS THE RISK RESERVE, ACCOUNTING ACCOUNTING AND REPORTING

What? 16. Exposition the risk room

The credit organization, the foreign bank branch of the foreign bank, imples and uses the project to handle risks to business operations, supply and use of interest derivative products under the regulation of the State Bank of Vietnam.

What? 17. Accounting booklet

The credit organization, the foreign bank branch that imples the accounting accounting for the yield derivative products by the regulations of the Vietnam Accounting Standards and the regulation of the State Bank of Vietnam on the credit organization's accounting system, Foreign bank branch.

What? 18. Report

Every month, the slowest, on the next 12 months adjacent to the month of reporting, the credit organization, the foreign bank branch reported the State Bank of Vietnam (Monetary Policy) of Vietnam ' s Monetary Policy, supply and use of interest derivative products in the same way. The charts 01 and 02 issued this.

Chapter III

THE RESPONSIBILITY OF THE COMMERCIAL BANK, THE FOREIGN BANK BRANCH OF BUSINESS,

PRODUCTIVITY DERIVATIVES PRODUCTS AND CUSTOMERS USING INTEREST RATE DERIVATIVES

What? 19. Commercial bank liability, foreign bank branch of business, supply of interest derivative products, $2million.

1. Do business, supply interest derivative products in accordance with the regulations at this Smart.

2. The internal regulatory committee on business activity, offering interest derivative products in accordance with the regulation at this Smart, the provisions of the relevant law and policy on business activity, the yield of interest rate derivatives, and the value of the product. of the commercial bank, the foreign bank branch. The internal regulatory text of the commercial bank, the foreign bank branch must have the content:

a) The conditions for the customer use the yield derivative products on the domestic market; the required documents of the customer to the commercial bank, the foreign bank branch;

b) The conditions for the foreign financial institution that the commercial bank, the foreign bank branch of the trade and the implementation of the contract derivatives contract on the international market;

c) Hierarchy, Authorization, functions, tasks and responsibilities of individual, department in appraisal, approval, business decision, yield of interest derivative products;

d) Identitifully, measuring the types of risks that can arise when business activity, supply of interest derivative products; process building and assignment of accountability tracking, control, assessment of the risks of birth; prevention and treatment measures. risk, including total business limits, supply of commercial banks ' interest derivatives products, foreign bank branches, business limits, supply of interest derivatives products to a customer and for individuals, organizations, and more. approved by the deal, the business decision, the supply of interest derivatives of the commercial bank, the foreign bank branch;

Profiles and information, documents related to business operations, product derivatives products;

e) Other events follow the internal governance requirements of the commercial bank, the foreign bank branch to ensure business operations, which provide a safe, effective yield derivative product.

3. Commercial banking operations business, offering interest derivative products must carry out centralized management and control management at the main headquarters of the commercial bank. The foreign bank branch operates, business, offering interest derivative products that carry out management and control risk under the regulation of the parent bank or be managed by the parent bank, which controls risk.

4. Customer requirements provide information, documents that demonstrate sufficient conditions using the prescribed interest rate products at this level and the internal regulation of the commercial bank, the foreign bank branch in terms of business operations, the supply of goods and other products. interest rate derivatives.

5. Provide information for full customers, exactly on the content of interest derivative products and the risks that may arise when using interest derivative products so that customers understand, consider deciding the use of interest derivative products and the use of interest rates in the consumer market. Prevention, limiting risk.

6. Find out the regulations of foreign law and the international market acting in relation to interest rate business activities, the information on rating ratings of foreign financial institutions to consider the decision to take place in the country. interface and implementation of interest derivatives contracts with foreign financial institutions on the international market to ensure business operations derivatives of the interest rate of the commercial bank, the foreign bank branch is safe, effective.

7. The case of commercial banking, foreign bank branch of business derivatives business derivatives market interest rates on the international market for prevention, limiting the interest rate to arise from the balance sheet, then the commercial bank, the bank branch, said. Foreign must have to build a prevarable rate of prevention, limiting interest rate risk, which analyses the rate of interest rates that arise from the balance sheet; the prevention method, which limits the interest rate risk must be legally represented by the commercial bank, the cost. It's a foreign bank branch out there.

8. Save Business Activity Profile, supply of interest derivative products in accordance with the rule of law.

What? 20. Client's responsibility to use interest rate products

1. Do the use of interest derivative products in accordance with the regulations at this Smart.

2. For the legal use of interest derivative products:

a) Provides to commercial banks, foreign bank branches: The original or copy of the contract evidence of the original transaction; the information, other material due to the commercial bank, the foreign bank branch of the foreign bank offering the yield derivative product. regulation to prove eligible for the use of interest derivative products in accordance with this Information. Held accountable to the law on the accuracy, honesty of the information, materials provided to the commercial bank, the foreign bank branch; and the government.

b) In time of announcement with the commercial bank, the foreign bank branch of the changes associated with the original transaction for commercial banks, the foreign bank branch, considers handling problems related to the contract derivatives contract;

c) Learn the regulations of law and market behavior in relation to interest rates products to consider deciding the use of interest derivative products due to commercial banks, the foreign bank branch of supply supply aims to hedge funds from the market. Prevention of interest rates.

3. For the credit organization, the foreign bank branch uses interest-interest derivative products:

a) Commitment to commercial banking, foreign bank affiliates at the contract derivatives contract or in private writing on: Using interest derivative products aims to prevent, limit interest rate risks; be ready to provide originations or maps of interest rates at the expense of their own. The contraceptive evidence of the original transaction or the prevention method, which limits the rate of interest rates arise from the balance sheet at the request of the State Bank of Vietnam, the competent authority;

b) Provides other information, other materials due to the commercial bank, the foreign bank branch of the foreign bank offering the regulatory interest derivative product to demonstrate sufficient conditions of the use of the interest rate by regulation at this level; in charge. before the law on the accuracy, integrity of the information, materials provided to the commercial bank, the foreign bank branch of the supply of interest derivative products;

c) Building and approve the prevention method, limiting the rate of interest rates that arise from the balance sheet, which has the analysis of interest rate risks;

d) Build an internal control system and internal regulation of risk management, which must have a content of control, risk management for the use of interest derivative products;

You carry out the rules at point b and paragraph 1.

Chapter IV

THE ORGANIZATION.

What? 21.

1. This message came into effect on 2 March 2015.

2. Repeal Decision No. 62 /2006/QD-NHNN December 29, 2006, the statute of implementation of the exchange rate transaction.

3. For the interest rate derivatives contracts that have signed before this date of the Internship Effect, the commercial bank, the foreign bank branch continues to implement the content written in the interest rate derivative contract in accordance with the rule of law. the law is valid at the time of the signing of that interest rate derivative or the revised agreement, the addition of interest derivatives contracts in accordance with the regulation at this level.

What? 22. Organization to execute

Chief of the Office, the Chief of Monetary Policy Affairs and the Head of Units of the State Bank of Vietnam, Director of the State Bank of the State Branch of the Provinces, the Central City of Central, Chairman of the Board, Chairman of the Board of members and President. The Director (Director) of the credit organization, the foreign bank branch responsible for organizing this private practice.

KT. GOVERNOR.
Vice Governor.

(signed)

Nguyen Thi Hong