Decision No. 107/2000/QD-NHNN on the provision of the level of unsecured loans for state-owned banks, foreign bank branches in Vietnam, and financial companies within state-owned corporations and poverty service banks

Pursuant to …;

DECISION NO. 107/2000/QĐ-NHNN1 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM DATED APRIL 4, 2000 ON THE LEVEL OF UNSECURED LOANS WITHOUT ASSET GUARANTEES FOR STATE OWNED COMMERCIAL BANKS, FOREIGN BANK BRANCHES IN VIETNAM, FINANCE COMPANIES UNDER STATE ENTERPRISES AND RURAL DEVELOPMENT BANKS

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated December 12, 1997;
Pursuant to Decree No. 15/CP dated February 3, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;
Pursuant to Clause 2, Article 21 of the Decree No. 178/1999/NĐ-CP of the Government dated December 29, 1999 on loan guarantees for credit organizations;
Pursuant to the proposal of the Director of the Monetary Policy Department,

Pursuant to …;

Article 1. The regulation of the level of unsecured loans without asset guarantees for credit organizations.

1. The Chairman of the Board of Directors of Vietnam Agricultural Bank, Vietnam Industrial and Commercial Bank, Vietnam Foreign Trade Bank, Vietnam Development Bank, and Southern Mekong Delta Development Bank (hereinafter referred to as State-owned commercial banks); the General Director (Director) of finance companies under state enterprises; the General Director of foreign bank branches in Vietnam shall decide the level of unsecured loans without asset guarantees for borrowers and bear responsibility for their decisions.

2. Rural development banks shall lend to individuals and poor households without asset guarantees according to Decision No. 525/TTg dated August 31, 1995 of the Prime Minister on the establishment of rural development banks or lend with credit guarantees from political and social organizations at the grassroots level according to Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit organizations and Circulars of the State Bank guiding the implementation of this Decree.

Article 2. Determining the level of unsecured loans without asset guarantees

1. The level of unsecured loans without asset guarantees of a credit organization as stipulated in Clause 1, Article 1 of this Decision shall be calculated based on the total outstanding loans of that credit organization, excluding outstanding loans without asset guarantees as directed by the Government and outstanding loans without asset guarantees to certain objects as stipulated in Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on some credit policies for rural development.

2. The level of unsecured loans without asset guarantees of credit organizations as stipulated in Article 1 of this Decision shall only apply to credit contracts established from the date this Decision takes effect.

Article 3. Responsibilities of credit organizations when lending without asset guarantees.

State-owned commercial banks, foreign bank branches in Vietnam, and finance companies under state enterprises shall decide and implement unsecured loans without asset guarantees for borrowers based on ensuring the safety of credit operations, complying with regulations on unsecured loans without asset guarantees as stipulated in Articles 19, 20, and 21 of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit organizations, Circulars of the State Bank guiding the implementation of this Decree, and related regulations of the Government.

Article 4. Implementation Provisions

1. This Decision shall take effect 15 days from the date of issuance.

2. The Chief Inspector of the State Bank shall be responsible for inspecting the implementation of this Decision; taking the lead and coordinating with the Director of the Department of Banks and Non-Bank Financial Institutions to assess the quality of operations of credit organizations and submit to the Governor of the State Bank for the determination of the level of unsecured loans without asset guarantees for each period for those credit organizations.

3. Heads of units under the State Bank, Directors of provincial and centrally-administered city branches of the State Bank; Chairmen of the Board of Directors, General Directors (Directors) of state-owned commercial banks, foreign bank branches in Vietnam, finance companies under state enterprises, and rural development banks shall be responsible for implementing this Decision./.