Circular No. 11/2011/TT-NHNN terminates the mobilization and lending of gold capital by credit institutions, effective from May 1, 2011. Credit institutions shall not conduct activities related to gold after this date.
Scope of application
Credit institutions and foreign bank branches
Key points
- Credit institutions shall not lend gold capital (Article 1)
- Mobilizing gold capital is terminated; only short-term gold certificates may be issued to pay gold upon customer request (Article 2)
- Gold mobilized capital shall not be converted into Vietnamese Dong or other forms before June 30, 2011 (Article 3)
- Credit institutions, State Bank provincial/municipal branches, and Banking Supervision Authorities shall report and handle violations (Article 4)
- This Circular takes effect from May 1, 2011 (Article 5)
🌐 Social impact of this document
- Positive impact: Reduces gold price risk, stabilizes financial markets.
- Negative impact: May cause difficulties for credit institutions in managing and converting gold mobilized capital.
❓ Frequently asked questions
What can credit institutions implement related to gold after May 1, 2011?
Credit institutions shall not implement lending gold capital, mobilizing gold capital, or converting gold mobilized capital into Vietnamese Dong or other forms.
When can short-term gold certificates be issued?
Short-term gold certificates may only be issued to pay gold upon customer request from May 1, 2011 to May 1, 2012.
What reports must credit institutions submit to the State Bank?
Credit institutions must submit reports on mobilizing and lending gold capital according to Appendices 1, 2, 3, and 4 of this Circular.
When is the deadline for converting gold mobilized capital into Vietnamese Dong?
All converted gold capital must be settled in cash no later than June 30, 2011.
Will credit institutions be penalized if they violate this regulation?
Yes, credit institutions will bear legal responsibility, and the State Bank of Vietnam will handle violations within its authority.
Full text
CIRCULAR
Regulations on terminating gold deposit-taking and lending activities of credit institutions
of credit institutions
___________________________
Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;
Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;
Pursuant to Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on key measures to focus on curbing inflation, stabilizing the macro-economy, and ensuring social welfare;
The State Bank of Vietnam hereby stipulates on terminating gold deposit-taking and lending activities of credit institutions, including foreign bank branches in Vietnam (referred to as credit institutions), as follows:
1. For credit institutions: Submit reports on gold deposit-taking and lending according to Appendixes 1, 2, 3, and 4 of this Circular; provide relevant information as requested by the State Bank of Vietnam during each period.
2. For provincial/municipal branches of the State Bank of Vietnam:
a) Carry out inspections and audits of credit institutions' termination of gold deposit-taking and lending activities within their jurisdiction, and handle violations within their authority.
b) Submit reports on the situation of gold deposit-taking and lending by credit institutions according to Appendix 5 of this Circular; report and propose to the Governor of the State Bank of Vietnam for handling difficulties and issues related to the termination of gold deposit-taking and lending by credit institutions within their jurisdiction.
3. For banking supervision agencies: Conduct oversight, inspections, and audits of credit institutions' termination of gold deposit-taking and lending activities as stipulated in this Circular; handle violations within their authority; report and propose to the Governor of the State Bank of Vietnam for handling difficulties and issues related to the termination of gold deposit-taking and lending by credit institutions.
State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.
1. This Circular takes effect from May 1, 2011.
2. Circular No. 22/2010/TT-NHNN dated October 29, 2010 of the Governor of the State Bank of Vietnam on gold deposit-taking and lending activities of credit institutions ceases to be effective.
3. The Director of the Office, the Head of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam; the Governors of provincial/municipal branches of the State Bank of Vietnam; the Chairmen of the Boards of Directors, General Managers (Directors) of credit institutions, and related individuals and organizations are responsible for implementing this Circular./.
DEPUTY DIRECTOR
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