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THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
432/2000/QD-NHNN1
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Hanoi, October 03, 2000
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DECISION
ON CREDIT INSTITUTIONS� OPERATION OF MOBILIZING AND USING CAPITAL IN
GOLD AND VIETNAM DONG WITH VALUE SECURED BY GOLD PRICES
THE STATE BANK GOVERNOR
Pursuant to Vietnam State Bank Law
No.01/1997/QH10 and Credit Institutions Law No.02/1997/QH10 of December 12,
1997;
Pursuant to the Government’s
Decree No.15/CP of March 2, 1993 on the tasks, powers and State management
responsibilities of the ministries and ministerial-level agencies;
At the proposal of the director of the Department for Monetary Policy,
DECIDES:
Article 1.- To allow credit institutions with foreign
exchange transaction licenses to mobilize from population time capital in gold
and Vietnam dong with value secured by gold prices under the provisions of this
Decision, with a view to further attracting sources of capital in gold and cash
to meet the demand of capital for production, business, services and daily-life
activities.
Article 2.- The mobilized gold shall be in form of bars or
jewelry gold converted into gold bars, based on the standards of gold
businesses already licensed to produce gold bars by the State Bank.
Article 3.-
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2. Credit institutions shall decide the
selection of types of gold bar to be mobilized and to serve as basis for
conversion of jewelry gold when mobilizing and using capital in gold and in
Vietnam dong with value secured by gold prices.
3. When mobilizing and lending capital in gold
and in Vietnam dong with value secured by gold prices, credit institutions and
customers shall agree upon the conversion gold prices, based on the market
buying and selling prices of the selected gold bars at the time of conversion.
Article 4.-
1. Credit institutions shall prescribe interest
rates for mobilizing capital in gold and Vietnam dong with value secured by
gold prices; interest rates for loans in gold and Vietnam dong with value
secured by gold prices, suited to their own business characteristics and
conditions in order to ensure the full coverage of expenses and risks, and the
profit earning.
2. Credit institutions shall have to publicize
and post up at capital mobilizing and lending places the mobilizing and lending
interest rates as well as the gold buying and selling prices so that customers
may be aware thereof.
Article 5.-
1. Credit institutions shall mobilize capital in
gold in form of issuing time gold mobilization certificates; the mobilization
of capital in Vietnam dong with value secured by gold prices shall be effected
in form of time savings or issuing certificates of mobilizing Vietnam dong with
value secured by gold prices. The minimum mobilization term for these forms
shall be 30 days.
2. The gold mobilization certificates as well as
the gold price-secured Vietnam dong mobilization certificates are the credit
institutions’
commitments towards the gold depositors and money depositors, which clearly
specify conditions on gold quantity, gold quality, Vietnam dong amount with
value secured by converted gold prices, term, interest rate, date of maturity
and mode of principal and interest payment; conditions on the assignment,
purchase, sale, donation, presentation, inheritance or pledge to borrow
capital, and other conditions.
Article 6.-
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2. The capital sources mobilized in gold serving
as basis for calculation of compulsory reserve shall be converted into Vietnam
dong according to the gold buying prices of credit institutions for gold bars
selected on the last working day of the compulsory reserve determination
period.
Article 7.-
1. Credit institutions shall use capital sources
mobilized in gold to provide gold loans to customers in order to meet the
demand of capital for production, business, services and daily-life activities
or convert them into capital sources in cash for the provision of loans in
Vietnam dong with value secured by gold prices, and to meet their own business
requirements.
2. Where credit institutions convert capital
sources mobilized in gold into capital sources in cash, the capital sources
converted into cash must not exceed 30% of the mobilized capital sources in
gold.
Article 8.- The lending of capital in gold and Vietnam dong
with value secured by gold prices shall comply with the Regulation on loan
provision to customers by credit institutions, issued together with the State
Bank Governor’s
Decision No.284/2000/QD-NHNN1 of August 25, 2000.
Article 9.- Credit institutions shall have the
responsibility:
1. To issue written professional guidance for
implementation of the provisions of this Decision and relevant legal documents,
in conformity with their business conditions and characteristics as well as
charters.
2. To send notices to the State Bank’s branches in the
provinces and cities (where credit institutions are headquartered), which shall
be enclosed with written professional guidance for mobilization and use of
capital in gold and Vietnam dong with value secured by gold prices. The time
limit for sending notices shall be 15 days before the actual mobilization and
use of capital in gold and Vietnam dong with value secured by gold prices.
3. To comply with suggestions of the State Bank’s
provincial/municipal branches related to the credit institutions’ operation of
mobilizing and using capital in gold and Vietnam dong with value secured by
gold prices.
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- For monthly reports: By the 10th of the
following month at the latest.
- For quarterly reports: By the 10th of the
first month of the following quarter at the latest.
- For yearly reports: By January 15th of the
following year at the latest.
Article 10.- The State Bank’s provincial/municipal branches shall have the
responsibility:
1. To receive and examine written guidance for
local credit institutions’
operation of mobilizing and using capital in gold and Vietnam dong with value
secured by gold prices; if detecting any contents incompatible with the
provisions of this Decision, the State Bank’s provincial/municipal branches shall request in
writing concerned credit institutions to make appropriate amendments and/or
supplements before the implementation thereof.
2. To periodically or extraordinarily examine,
inspect the local credit institutions’
operation of mobilizing and using capital in gold and Vietnam dong with value
secured by gold prices in strict compliance with the provisions of this
Decision as well as the relevant legal documents in order to ensure safety for
depositors’
capital as well as the safe, healthy and effective operations of credit
institutions, promptly detect and handle violations according to law
provisions.
3. To monthly, quarterly and annually report to
the State Bank (Department for Monetary Policy, Banking Inspectorate and
Department for Banks and Non-Bank Credit Institutions) on the local credit
institutions’
situation of mobilizing and using capital sources in gold and Vietnam dong with
value secured by gold prices. The reporting deadlines are prescribed as
follows:
- For monthly reports: By the 15th of the
following month at the latest.
- For quarterly reports: By the 15th of the
first month of the following quarter at the latest.
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Article 11.- The units attached to the State Bank shall have
the responsibility:
1. The Finance- Accountancy Department: To guide
the accounting of the operation of mobilizing and using capital in gold and
Vietnam dong with value secured by gold prices.
2. The Department for Banks and Non-Bank Credit
Institutions: To guide credit institutions to effect the risk reserve during
the mobilization and use of capital in gold and Vietnam dong with value secured
by gold prices.
3. The Department for Monetary Policy: To study
the credit institutions’
situation of mobilizing and using capital in gold and Vietnam dong with value
secured by gold prices in order to propose to the State Bank Governor
amendments and/or supplements to the regulations on operation of mobilizing and
using capital in gold and Vietnam dong with value secured by gold prices.
4. The Banking Inspectorate: To supervise and
inspect credit institutions’
operation of mobilizing and using capital in gold and Vietnam dong with value
secured by gold prices; to handle according to its competence or propose the
State Bank Governor to handle violations of the provisions of this Decision.
Article 12.- This Decision takes effect 15 days after its
signing and replaces Decision No.42/QD-NH1 of February 21, 1992 on the
mobilization of capital and provision of loans with value secured according to
the gold prices; legal documents guiding the implementation of Decision
No.42/QD-NH1 of February 21, 1992, Decision No.57/QD-NH1 of March 31, 1992 on
interest rates of mobilizing and lending capital with value secured according
to the gold prices, and Clause 5, Article 1 of the State Bank Governor’s Decision
No.191/1999/QD-NHNN1 of May 31, 1999 on the compulsory reserve ratio for credit
institutions.
Article 13.- The heads of the units attached to the State
Bank; the directors of the State Bank’s
branches in the provinces and centrally-run cities; the chairmen of the
Managing Boards and the general directors (directors) of credit institutions
licensed for foreign exchange activities shall have to implement this Decision.
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