From January 7, credit institutions and foreign bank branches may lend or borrow to/from one another to make up for temporary deficits in their compulsory reserves and solvency, with a view to guaranteeing their business effectiveness and operation safety.
From January 7, credit institutions and foreign bank branches may lend or borrow to/from one another to make up for temporary deficits in their compulsory reserves and solvency, with a view to guaranteeing their business effectiveness and operation safety.
This is provided by the State Bank in Circular No. 01/2013/TT-NHNN, of January 7, amending a number of articles of Circular No. 21/2012/TT-NHNN, of June 18, 2012, on lending and borrowing operations and termed purchase and sale of valuable papers among credit institutions and foreign bank branches.
In addition to the conditions specified in Circular No. 21/2012/TT-NHNN, a credit institution or foreign bank branch must, at the time of borrowing capital from another, owe no debt overdue for 10 days or more to the latter, unless it is allowed by the SBV Governor.
Transactions in Vietnam dong among credit institutions and foreign bank branches which are members of the inter-bank e-payment system must be implemented through this system, except transactions which are done when the system does not operate, transactions for transfer of loan principals and interests, transactions not for transfer of loan principals, money transfer for termed purchase and sale of bonds listed at the Stock Exchanges under the current law on securities.
The Circular also amends a number of articles on lending term, purchase and sale term and effects of borrowing and lending and termed purchase and sale of valuable papers among credit institutions and foreign bank branches.
(Source: Vietnamlaw)
