In accordance with the Circular No. 30/2014/TT-NHNN dated November 06, 2014 of the State Bank of Vietnam providing for the entrustment operations and entrustment taking of credit institutions, foreign bank’s branches; credit institutions (excluding financial companies), foreign bank’s branches are not permitted for entrustment, entrustment taking for production business projects.

Besides, credit institutions, foreign bank’s branches are not permitted taking entrustments, entrusting for lending for the entrustment subjects that are not granted for credit; commercial banks, foreign bank’s branches, Cooperative banks, People’s Credit Fund, micro financial organizations are not permitted for entrustment and entrustment taking for financial leasing; credit institutions (excluding commercial banks), foreign bank’s branches are not permitted for entrustment and entrustment taking for capital contribution, share purchase.

For the entrustment operations and entrustment taking of credit institutions, foreign bank’s branches, credit institutions, foreign bank’s branches must To have internal regulations on management of entrustment operations and entrustment taking, of which contents on recognition and risk management of entrustment operations and entrustment taking must be conformity with the nature, operation scale of credit institutions, foreign bank’s branches; the risk management department shall manage entrustment taking and entrustment; the entrusted party must have facilities, qualified human resources to ensure the performance of the works… for credit institutions, foreign bank’s taking entrustments from organizations, individuals to invest in production investment project, financial leasing, lending, they must ensure that the entrusting party being an organization, individual have no outstanding credit at credit institutions, foreign bank’s branches at time of entrustment.

This Circular takes effect on January 01, 2015.

See more:

Circular No. 30/2014/TT-NHNN

 
 

Related posts