CIRCULAR

PROVIDING FOR THE TERMINATION OF MOBILIZATION AND PROVISION OF LOANS IN GOLD BY CREDIT INSTITUTIONS

- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;

- Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Implementing the Resolution No. 11/NQ-CP dated 24 February 2011 of the Government on main solutions focusing on restriction of inflation, stabilizing macro-economy, ensuring social security;

The State Bank of Vietnam hereby provides for the termination of mobilization and provision of loans in gold by credit institutions, foreign bank's branches (hereinafter shortly referred to as credit institutions) as follows:

Article 1. Credit institutions shall not be authorized to provide loans in gold to customers and other credit institutions (including any credit contract that has already been signed but not disbursed yet or not fully disbursed yet); not to deposit gold at other credit institutions; not to perform entrustment, investment operations and other forms of credit extension in gold.

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Article 3. Credit institutions shall not be authorized to convert their fund previously mobilized in gold to Vietnamese dong and other forms in cash. For the fund in gold that has already been converted to cash, it shall be subject to final settlement on 30 June 2011 at the latest.

Article 4. Responsibilities of institutions

1. For credit institutions: To send report on the mobilization and provision of loans in gold in line with Appendix 01, Appendix 02, Appendix 03 and Appendix 04 of this Circular; to supply related information upon request by the State Bank of Vietnam from time to time.

2. For State Bank's branches in provinces, cities under the central Government's management:

a. To inspect, examine the termination of mobilization and provision of loans in gold by credit institutions in the local area, to deal with acts of violation within the scope of competence.

b. To send report on the situation of mobilization and provision of loans in gold by credit institutions in line with Appendix 05 of this Circular; to report and propose the Governor of the State Bank to handle any difficulties, queries relating to the termination of mobilization and provision of loans in gold by credit institutions in the local area.

3. For the Banking Inspection and Supervision Department: To supervise, inspect, examine the termination of mobilization and provision of loans in gold by credit institutions in accordance with provisions of this Circular; to deal with cases of violation within the scope of competence; to report and propose the Governor of the State Bank to handle any difficulties, queries relating to the termination of mobilization and provision of loans in gold by credit institutions.

Article 5. Implementation organization

1. This Circular shall be effective from 01 May 2011.

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3. The Director of the Administrative Department, Director of the Monetary Policy Department and Heads of units of the State Bank of Vietnam; Managers of the State Bank’s branches in provinces and cities under the central Government’s management; Chairman of Board of Directors and General Directors (Directors) of credit institutions, and related organizations, individuals shall be responsible for the implementation of this Circular.

FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR




Nguyen Dong Tien

APPENDIX 01

Name of CI: ……………………

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD

Month…. year….

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1. Mobilization in gold

a. Balance by gold tael

b. Balance in VND (billion dong)

c. Average interest rate for fund mobilization (% per annum)

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2. Lending in gold to customers

a. Balance by gold tael

b. Balance in VND (billion dong)

c. Average interest rate for loan (% per annum)

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e. Ratio of non performing loan over outstanding of loans in gold (%)

3. Amount of funds in gold converted into money

a. By gold tael

b. By VND (billion dong)

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a. By gold tael

b. By VND (billion dong)

5. Use for other purposes

a. By gold tael

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6. Gold in vault

a. By gold tael

b. By VND (billion dong)

Drawer
(Signature and full name)

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Instructions for preparation and sending of report:

- Average interest rate for fund mobilization, average interest rate for loans shall be calculated under the weighted average method.

- Average term for fund mobilization stated in the gold mobilization certificate shall be calculated under the weighted average method.

- Average term for loan stated in the loan agreement shall be calculated under the weighted average method.

- To specify other purposes in item 5.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: phongcstt@sbv.gov.vn).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- Clearly state full name and contact number of the person in charge of answering report's details upon request of SBV..

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APPENDIX 02

Name of CI: …………………….

SITUATION OF LENDING IN GOLD

Month… year …..

Unit: gold tael, VND billion

Norm

Outstanding debt at the end of the reporting month

Expected debt collection of the following month

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Converted to VND (VND billion)

Gold tael

Converted to VND (VND billion)

1

Loans for jewelry gold production (making) and business

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Consumer loans

3

Loans for real estate investment and trading

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4

Loans for production, business (other than jewelry gold production (making) and business)

5

Loans to other credit institutions

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6

Loans for other purposes

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Total

Drawer
(Signature and full name)

..........., date.......
General Director
(Signature, full name and seal)

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- To specify other purposes in item 6.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: phongcstt@sbv.gov.vn).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- Clearly state full name and contact number of the person in charge of answering report's details upon request of SBV.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 03

Name of CI: …………..

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD BY THE REMAINING PERIOD

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Unit: gold tael, VND billion, month

Norm

By gold tael

Converted to VND

1. Total fund mobilization in gold counted by the remaining period of mobilization

a. Less than 01 month

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b. From 01 to less than 06 months

c. From 06 months to less than 12 months

d. From 12 months to less than 24 months

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g. From 60 months and more

2. Total outstanding of loans in gold counted by the remaining period of the loans

a. Less than 01 month

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b. From 01 to less than 06 months

c. From 06 months to less than 12 months

d. From 12 months to less than 24 months

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e. From 24 months to less than 60 months

g. From 60 months and more

3. Average remaining period

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b. Average remaining period of loan (month)

Drawer
(Signature and full name)

..........., date.......
General Director
(Signature, full name and seal)

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- The remaining period of fund mobilization in gold up to the end of the reporting month shall be calculated as the period stated in the certificate of fund mobilization in gold minus the period already mobilized.

- The remaining period of loan in gold up to the end of the reporting month shall be calculated as the period of the loan stated in the loan agreement minus the period already lent.

- Norms in item 3 shall be calculated under the weighted average method.

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: phongcstt@sbv.gov.vn).

- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 04

Name of CI: ………….

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Month … year ….

Unit: gold tael, VND billion

Norm

Reporting month

Expected in the following month

1. Revenue of fund mobilization in gold

a. By gold tael

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b. By VND (billion dong)

2. Revenue of payment

a. By gold tael

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b. By VND (billion dong)

Drawer
(Signature and full name)

..........., date.......
General Director
(Signature, full name and seal)

Instructions for preparation and sending of report:

- Report making unit: credit institutions which perform mobilization and provision of loans in gold.

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- Reporting deadline: On the 10th of the month consecutively following the reporting month at the latest.

- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

APPENDIX 05

SBV's branch in province, city: …………

REPORT ON THE MOBILIZATION AND PROVISION OF LOANS IN GOLD BY CREDIT INSTITUTIONS IN THE LOCAL AREA

Month… year…

Unit: gold teal, VND billion

Norm

Gold tael

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(billion dong)

1. Balance of fund mobilization in gold

2. Total outstanding of loans in gold

a. Loans for jewelry gold production (making) and business

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b. Consumer loans

c. Loans for real estate investment and trading

d. Loans for production, business (other than jewelry gold production (making) and business)

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3. Ratio of non performing loans over the total outstanding of loans in gold (%)

4. Amount of fund in gold converted to cash

5. Gold in vault

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Drawer
(Signature and full name)

..........., date.......
Manager
(Signature, full name and seal)

Instructions for preparation and sending of report:

- Report making unit: State Bank's branches in provinces, cities under the central Government's management.

- Report recipient: Monetary Policy Department- State Bank of Vietnam- 49 Ly Thai To, Hoan Kiem, Hanoi (fax: 04. 3936 4620; email: phongcstt@sbv.gov.vn).

- Reporting deadline: On the 15th of the month consecutively following the reporting month at the latest.

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- During the implementation, any arising query shall be reflected in writing or via the following contact number: 04-3.8268781; fax: 04. 3936 4620.

Thông tư 11/2011/TT-NHNN quy định về chấm dứt huy động và cho vay vốn bằng vàng của tổ chức tín dụng do Ngân hàng Nhà nước Việt Nam ban hành