Circular No. 12/2012/TT-NHNN amending and supplementing certain provisions of Circular No. 11/2011/TT-NHNN dated April 29, 2011, issued by the Governor of the State Bank of Vietnam on terminating the mobilization and lending of gold capital by credit institutions.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 11/2011/TT-NHNN

dated April 29, 2011 of the Governor of the State Bank of Vietnam of Vietnam

on terminating gold deposit and lending activities

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;

Implementing Resolution No. 01/NQ-CP dated January 3, 2012 of the Government on major solutions to guide and implement the socio-economic development plan and state budget estimate for 2012; Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on major solutions to focus on curbing inflation, stabilizing macroeconomic conditions, and ensuring social welfare;

Considering the proposal of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing certain provisions of Circular No. 11/2011/TT-NHNN dated April 29, 2011 of the Governor of the State Bank of Vietnam on terminating gold deposit and lending activities of credit institutions.

Article 1. Amending and supplementing certain provisions of Circular No. 11/2011/TT-NHNN as follows:

1. Market management agencies at all levels include: the Department of Domestic Market Management and Development under the Ministry of Industry and Trade; the Market Management Business Unit under the Department of Domestic Market Management and Development; the Market Management Sub-department under the Department of Industry and Trade of provinces and centrally-administered cities; and the Market Management Team under the Market Management Sub-department.

Article 2.

Credit institutions shall not mobilize capital in gold, except in the case of issuing short-term gold certificates to pay gold according to customer requests when the amount of gold collected from debt recovery and remaining in inventory is insufficient for payment. The issuance of short-term gold certificates by credit institutions shall cease on November 25, 2012."

2. Amending and supplementing Clause 3 (which has been amended and supplemented by Circular No. 32/2011/TT-NHNN dated October 6, 2011 of the Governor of the State Bank of Vietnam) as follows:

"Article 3.

Credit institutions shall not convert gold deposits into Vietnamese dong or other forms of money under any circumstances; they shall not use gold deposits as collateral, pledge, or guarantee for repayment obligations of loans at other credit institutions."

3. Amending and supplementing Article 4 (which has been amended and supplemented by Circular No. 32/2011/TT-NHNN dated October 6, 2011 of the Governor of the State Bank of Vietnam) as follows:

"Article 4. Responsibilities of organizations:

1. Credit institutions:

a) Develop a roadmap and plan to terminate gold mobilization by November 25, 2012, and submit it to the State Bank of Vietnam (Department of Foreign Exchange Management, Banking Inspection and Supervision Authority) for supervision.

b) Credit institutions that have converted gold into money in accordance with Circular No. 32/2011/TT-NHNN dated October 6, 2011 of the Governor of the State Bank of Vietnam must settle the converted gold amount and close their gold accounts abroad in accordance with the notification of the State Bank of Vietnam.

c) Weekly on Mondays, credit institutions must report to the State Bank of Vietnam (Department of Foreign Exchange Management, Banking Inspection and Supervision Authority, Branch of the State Bank of Vietnam in the province or city where the credit institution's headquarters is located) on the situation of gold mobilization and lending as stipulated in Appendices 1, 2, 3, and 4 issued together with this Circular.

d) Provide relevant information upon request of the State Bank of Vietnam during each period.

2. Department of Foreign Exchange Management: Monitor, compile, and propose measures to handle gold mobilization and utilization by credit institutions for submission to the Governor of the State Bank of Vietnam for decision.

3. Banking Inspection and Supervision Authority: Carry out supervision, inspection, and examination of credit institutions' termination of gold mobilization and lending activities in accordance with this Circular; handle violations within its authority; report and propose to the Governor of the State Bank of Vietnam to resolve difficulties and obstacles in terminating gold mobilization and lending activities of credit institutions.

4. Branches of the State Bank of Vietnam in provinces and centrally-administered cities are responsible for inspecting and examining credit institutions' termination of gold mobilization and lending activities in their respective areas; handle violations within their authority; report and propose to the Governor of the State Bank of Vietnam to resolve difficulties and obstacles in terminating gold mobilization and lending activities of credit institutions in their respective areas."

Article 2. Implementation clause

1. This Circular takes effect from April 30, 2012.

2. Circular No. 32/2011/TT-NHNN dated October 6, 2011 amending and supplementing certain provisions of Circular No. 11/2011/TT-NHNN dated April 29, 2011 of the State Bank of Vietnam on terminating gold mobilization and lending activities of credit institutions ceases to be effective.

3. The Heads of the Office, the Banking Inspection and Supervision Authority, the Heads of units under the State Bank of Vietnam, the Chairmen of the Boards of Directors, the Chairmen of the Boards of Members, the General Managers (Directors) of credit institutions, and related individuals and organizations are responsible for implementing this Circular./.