Law 18/2004/qh11: Amendments And Supplements To Some Articles Of The Law On Credit Institutions

Original Language Title: Luật 20/2004/QH11: Sửa đổi, bổ sung một số điều của Luật các Tổ chức tín dụng

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 was amended and supplemented by resolution No. 51/2001/QH10 on 25 December 2001 of the Xth Congress, session 10;

This law amending and supplementing some articles of the law on credit institutions was the National Assembly of the Socialist Republic of Vietnam passed on 12 December 1997, article 1.

Amendments and supplements to some articles of the law on credit institutions: 1. Article 4 is modified and supplemented as follows: "article 4. The State's policy of building the kind of credit institutions 1. Unify management of all activities of the Bank, the construction of the system of modern credit institution, sufficient to meet the needs of capital and banking services for the economy and the population, contributing to the implementation of national monetary policies, secure system for credit institutions, protect the legal interests of depositors.

2. The investment of capital and other resources to develop the State credit institutions, enabling these organizations to keep dominant role and main force on currency markets.

3. State establishment of active policy Bank non-profits to serve the poor and other policy objects; serving the region of mountains, Islands, remote areas, regions with socio-economic difficulties; serving agriculture, rural areas and farmers to implement the socio-economic policy of the State. Government regulations on preferential credit policies of capital, interest, conditions, duration of loans.

Pursuant to the provisions of this law, government regulations on the Organization and operation of the Bank policies fit the particularities of each type of Bank policy.

4. Protection of property rights, other rights and legitimate interests in the activities of the credit institutions in order to create conditions for cooperation workers assistance in production and life. "

2. Article 12 is amended and supplemented as follows: "article 12. The type of credit institutions 1. Credit institutions established under the law of Vietnam including State credit institutions, credit institutions, stock, credit institutions, credit institutions, credit institutions 100% foreign capital.

2. Credit institutions abroad are foreign bank branch opens and a representative office in Vietnam.

3. foreign credit organizations which buy shares of credit institutions operating in Vietnam according to the regulations of the Government. "


3. Article 20 is amended and supplemented as follows: "article 20. Explanation of terms In this law, the terms below are interpreted as follows: 1. business credit institutions established under the provisions of this law and other provisions of law to banking activities.

2. The Bank is the type of credit institutions is done the entire banking activities and other business activities are concerned. According to the nature and objectives, the type of the Bank including commercial banks, development banks, investment banks, banking policy, cooperative bank and the type of other banks.

3. non-bank credit organizations is the type of credit institutions is done some banking activities as business content frequently, but do not receive non-term deposits, payment services do not. Non-bank credit organizations include finance companies, financial leasing companies and non-bank credit organization.

4. foreign credit institutions are credit institutions established under foreign law.

5. Institutions and institutional cooperation currency trading and banking service, by institutions, individuals and households voluntarily established to banking activities under the provisions of this law and the law on cooperatives aimed mainly assistance to each other to produce , business and life. Cooperative credit institutions include banking cooperation, the people's credit funds and other forms.

6. Major shareholders are individuals or entities owning over 10% of the capital or the holding on 10% of the equity voting power of a credit organization.

7. Bank activity is the activity of currency trading and banking services with regular content is getting deposits, use this money to grant the credit and payment services provision.

8. Operating credit is the credit institutions using own funds mobilized, to grant the credit.

9. Deposit is the amount of organization, individuals send in credit institutions or other institutions have banking operations in the form of non-term deposits, term deposits, savings deposits and other forms. Deposit interest rate or not entitled to enjoy the interest and must be returned to depositors.

10. Granting credit is the credit institution deals to customers who use a sum of money to have the repayment rules for borrowers, discount, financial leasing, bank guarantees and other services.

11. Financial Leasing is the medium term credit operations, on the basis of long-term leasing contracts between the lessor's credit organization with clients.

12. bank guarantee is committed by credit institutions to have the right side on the implementation of financial obligations to the client when the client does not perform true obligation was committed; the customer must accept the debt and repayment for credit institutions amount to have been paid instead.

13. Capital letters consisting of the real value of capital, the reserve funds, a number property that "debt" of credit institutions as defined by the State Bank. Own capital is the base for calculating the percentage guaranteed safe in Bank operations.

14. The discount is the credit institution purchasing negotiable, valuable papers of the beneficiary prior to the payment deadline.

15. Re discounting is the acquisition of negotiable paper, papers have been discounted before payment due. "

4. Article 30 is amended and supplemented as follows: "article 30. The Charter 1. The Statute of the credit organization must have the following principal contents: a) the name and place of headquartered;

b) the contents and scope of activity;

c) the time limit for the operation;

d) capital and capital contribution method;

DD) duties and powers of the Board, General Director (Director) and Control Board;

e) election practices, appointment and dismissal of members of the Management Board, ceo (Director) and Control Board;

g) rights and obligations of the shareholders;

h) the principles of finance, accounting, auditing, control and internal audit;

I) The case of dissolution, the procedure of dissolution;

k) revision.

2. The Charter of the Organization of credit only made after the State Bank of the medical standard, unless otherwise specified by law ".

5. Article 31 is amended and supplemented as follows: "article 31. The changes must be approved 1. Credit institutions must be approved by the State Bank in writing before a change in the following points: a) the name of the credit institution;

b) capital Levels, the level of capital;

c) location based, transaction, branches, representative offices;

d) content, scope and duration of the activity;

DD) transfer of shares are bearer too regulation rate State Bank;

e) rate of shares of major shareholders;

g) members of the Management Board, ceo (Director) and member of the Supervisory Board.

2. After being approved by the State Bank, credit institutions must be registered with the competent State agencies about changes to the provisions in clause 1 of this article and to the Central, local newspaper post under the provisions of the law of the contents specified at points a, b c and d, paragraph 1 of this article. "

6. Article 32 be amended and supplemented as follows:

"32 Things. Open transaction, branches, representative offices; establishment of the company, the credit institutions are allowed: 1. open the Exchange, branches, representative offices in other areas in the country, outside the country where there is active demand, including where to place the Headquarters after the Bank approved in writing;

2. Established companies having legal personality, independent accounting by which self has to work on some areas of finance, banking, insurance, mining, management and sale of assets in the asset disposal process secured loan and the property which the State assigned to the credit organization handles debt collection;

3. Establish business units after the Bank approves in writing. "

7. Article 37 be amended and supplemented as follows: "article 37. The Board 1. The Board of management function institutions according to the provisions of this law and other provisions of the law.

2. The Board members have a minimum of three people, including those with prestige, professional ethics and knowledge of Bank operations.

3. The Chairman and the other members of the Board are not authorized for those who are not members of the Board perform the task, their powers.

4. The Chairman of the Board is not at the same time is the Director-General (Executive Director) or Deputy Director (Deputy Director) credit institutions, unless the law otherwise.

5. The Chairman of the Management Board of the credit institution is not allowed to join the Board or join other credit institutions operating, unless that organization is the company of credit institutions.

Chairman of the Board of the people's Credit Fund facility was to join the Board of the Central People's Credit Fund. "

8. Article 38 be amended and supplemented as follows: "article 38. Control Board 1. Supervisory Board of the credit institution operating under the provisions of this law and other provisions of the law.

2. Control Board has the task of checking the financial operations, monitoring the observance of accounting mode, the safety in operation of credit institutions, the implementation of internal audit activities each period, each sector to assess business activities and the financial situation of the credit institution.

3. Control Board of the credit organization has a minimum of three people, including a man who was the Chief and at least half of the members are professional.

4. Control Board members must meet the qualification requirements and professional ethics by the State banking regulations.

5. Control Board has the parts and used test system, internal control of credit institutions to perform their duties. "

9. Article 39 is amended and supplemented as follows: "article 39. Director-General (Executive Director) 1. General Manager (Director) of the credit institutions is the person responsible to the Executive Board the daily activities according to the tasks, powers consistent with the provisions of this law and other provisions of the law.

2. the Director-General (Executive Director), Vice President (VP) of the credit institutions must have the following criteria: a) residence in Vietnam in the current period;

b) Have health, ethics, honest, incorruptible; understanding the law and consciously obey the law;

c) has the expertise, capacity and operating management of credit institutions as defined by the State Bank.

3. the Director-General (Director) of the credit institutions are not allowed as General Manager (Director) or the Chairman of the Management Board of the credit organization, unless the organization is your company credit institutions. "

10. Article 42 is amended and supplemented as follows: "article 42. Check the internal control, The credit institution must regularly check, control the observance of the law and the internal regulations; direct examination, control of business activities on all the fields in the transaction, branches, representative offices and affiliated companies ".

11. Article 45 is amended and supplemented as follows: "article 45. Receive deposits 1. The Bank received deposits of organizations, individuals and other credit institutions.

2. non-bank credit organization be accepted term deposits from a year or more of individual organization according to the provisions of the Bank. "

12. Article 46 be amended and supplemented as follows: "article 46. The release of valuable papers held credit is issued a certificate of deposit, bonds and other valuable papers to the Organization's financing, domestic and foreign individuals according to the regulations of the Bank. "

13. Article 52 is amended and supplemented as follows: "article 52. Secured loan 1. Credit institutions actively looking for production projects, the business viable, effective and have the ability to repay the debt to the lender.

2. Credit institutions have the right look, lending decisions on the basis of secured or not secured by mortgage, pledge assets of the borrower, the guarantee of a third party and is responsible for its decision. Credit institutions are not lending on the basis of the pledge by major stock of lending credit institution.

3. Credit institutions consider, decide whether loans are secured by the assets formed from the loan.

4. Credit institutions of State are unsecured loans as directed by the Government. Losses due to objective causes of this loans processed by the Government. "

14. Article 53 be amended and supplemented as follows: "article 53. Loan review, examine the use of loan 1. Credit institutions are asked to provide documents proving viable business plans, financial ability and of the guarantor before deciding to borrow.

2. Credit institutions have to loan review is organized according to the principle of delineation of responsibilities between the appraisal and lending decisions.

3. Credit institutions are accountable and have the right to inspect and supervise the process of loan repayment and loan customers. "

15. Article 57 is amended and supplemented as follows: "article 57. Discount, discount negotiable and other valuable papers 1. Credit institutions are discounting the trade vote and other valuable papers to the customers.

2. credit institutions be re negotiable discount and other valuable papers for each other.

3. the credit institution's Bank can be State Bank re negotiable discount and other valuable papers were discounting.

4. The discount, discount negotiable and other valuable papers in the system of the credit institution by the State Bank regulations. "

16. Article 79 is amended and supplemented as follows: "article 79. The limit for loans, guarantees, trade discount and other valuable papers, lease finance 1. The loan limit for a client is defined as follows: a) total outstanding loans for a client should not exceed 15% of the capital of the credit institution, except for the loan from the Government's trust funds, of the organizations, individuals or cases of borrowers is the other credit institutions;

b) where a client's capital needs that exceed 15% of the capital of the credit institution or customer that needs financing from multiple sources, the credit institutions are lenders of capital cases pursuant to the State Bank Governor;

c) In special cases, to perform the task of socio-economic that possibility of credit institutions which do not meet loan request of a customer, then the Prime Minister can decide the level of the maximum loan for each specific case.

2. Extent of the guarantee, discount negotiable and other valuable papers for one client may not exceed the rate compared with capital letters of credit held by the Governor of the State Bank regulations.

3. financial leasing Rates for a client of credit institutions follow government rules. "

17. Article 81 be amended and supplemented as follows: "article 81. The rate guarantee safety 1. Credit institutions must maintain the security rate: a) pay is determined by the ratio between the assets "Yes" can pay now compared to the property type "debt" to pay at a certain time of the credit organization;

b) minimum capital safety ratio determined by the ratio between capital letters than the property "There", including the commitment of foreign tables are adjusted according to the level of risk;

c) maximum rate of short-term capital is used for medium-term and long-term loans.

2. The Governor of the State Bank of the national provisions mentioned in clause 1 of this article for each type of credit institutions.

3. The total capital of a credit institution's investment in other credit institutions in the form of capital contribution, purchase of shares are deducted from own capital when calculating the rate of safety. "

18. Article 84 is amended and supplemented as follows: "article 84. Accounting, finance, Currency, finance, financial accounting, year of credit institutions is done according to the provisions of the law on finance, accounting and statistics. "

19. Article 105 is amended and supplemented as follows: "article 105. Active form.

1. foreign credit institutions are allowed to operate in Vietnam under the following form: a) venture credit institutions;

b) credit institutions 100% foreign capital;

c) foreign bank branches in Vietnam.

2. Credit institutions abroad are placed representative offices in Vietnam. Representative offices of foreign credit institutions not made business activities in Vietnam ".

20. Article 122 amended and supplemented as follows: "article 122. Audit 1. Least 30 days before the end of the financial year, credit institutions must choose an independent audit organization qualified under the provisions of the State Bank to audit its activities. The independent audit organization selected to be made under the provisions of the law of tenders.

2. In the course of the audit, credit institutions have the responsibility to provide accurate, complete, timely information as requested by the Auditors.

3. the audit Work for the credit institutions of cooperation by the State Bank regulations consistent with regulatory requirements and scale of activities of this organization. "


Article 2.

1. Annuls articles 6, 7, 8, 9, 10, 43, 85 and 86.

2. Replace the phrase "internal audit" in section 4 title chapter II, article 41 and article 44 by the phrase "internal control"; instead of the term "short-term valuable papers" in article 70 by the phrase "valuable papers"; replace the phrase "the provisions in paragraph 2 of article 50 of law bankruptcy business" in point d paragraph 1 to article 40, the phrase "in accordance with the law on bankruptcy business" in article 98, the phrase "in accordance with the law on enterprise bankruptcy" in paragraph 3 to article 54 and Article 100 clause 1 by the phrase "in accordance with the insolvency law"; rather the term "non-bank credit organization 100% foreign capital" in articles 106, 107, 108, 109, 110, 111, 112 and 113 by the phrase "credit organization 100% foreign capital".

3. Remove the phrase "Government agency" in paragraph 3 Article 116.


Article 3.

1. This Act has effect from 1 October 2004.

2. Government regulations and detailed guidelines for implementing this law./. 

Related Laws