Decision No. 150/2001/QD-TTg of the Government Prime Minister permits commercial banks to establish a Debt Management and Asset Exploitation Company with legal personality. The State Bank will issue model Charter and approve the establishment of the company according to the approved Non-performing Loan Resolution.
Scope of application
Commercial banks
Key points
- Commercial banks are permitted to establish a Debt Management and Asset Exploitation Company with legal personality and independent accounting after being approved in writing by the State Bank.
- The State Bank will issue a model Charter regarding organization and operation, and approve the establishment of the Debt Management and Asset Exploitation Company according to the Non-performing Loan Resolution already approved by the Government Prime Minister.
- The Ministry of Finance will guide the financial regime for the Debt Management and Asset Exploitation Company of commercial banks.
🌐 Social impact of this document
- Positive impact: Enhance the effectiveness of non-performing loan resolution, reduce risks for commercial banks.
- Negative impact: May increase management costs for banks and enterprises participating in the activities of the debt management company.
❓ Frequently asked questions
When are commercial banks permitted to establish a Debt Management Company?
Commercial banks are permitted to establish a Debt Management and Asset Exploitation Company after being approved in writing by the State Bank.
How will the State Bank issue the model Charter regarding organization and operation?
The State Bank will issue the model Charter regarding organization and operation according to the content of the Non-performing Loan Resolution already approved by the Government Prime Minister.
What role does the Ministry of Finance play in the establishment of the Debt Management Company?
The Ministry of Finance will guide the financial regime for the Debt Management and Asset Exploitation Company of commercial banks.
When does this decision take effect?
This decision takes effect 15 days after the date of signing.
What is the validity of Circular No. 122/CP-KTTH of the Government Prime Minister on the establishment of a Debt Management and Asset Exploitation Company for collateral of commercial banks?
Circular No. 122/CP-KTTH dated February 3, 2000 of the Government Prime Minister on the establishment of a Debt Management and Asset Exploitation Company for collateral of commercial banks ceases to be effective.
Full text
Pursuant to …; OF THE PRIME MINISTER
Regarding the establishment of a Debt Management and Asset Recovery Company under Commercial Banks
under a commercial bank
PRIME MINISTER
Pursuant to the Government Organization Law dated September 30, 1992;
Based on the Law on Credit Organizations dated December 12, 1997;
Pursuant to Decision No. 149/2001/QĐ-TTg dated October 5, 2001 of the Prime Minister approving the Project on Handling Outstanding Debts of Commercial Banks;
At the proposal of the Governor of the State Bank of Vietnam,
DECISION:
Article 1. Permitting commercial banks to establish a Debt Management and Asset Recovery Company with legal personality and independent accounting. The Chairman of the Board of Directors of commercial banks shall decide to establish a Debt Management and Asset Recovery Company after receiving written approval from the State Bank of Vietnam.
Article 2. The State Bank of Vietnam shall issue a Model Charter regarding organization and operation, approve the establishment of a Debt Management and Asset Recovery Company according to the content of the Project on Handling Outstanding Debts of commercial banks approved by the Prime Minister and relevant laws.
Article 3. The Ministry of Finance shall guide the financial regime for Debt Management and Asset Recovery Companies of commercial banks.
Article 4. This Decision takes effect fifteen days after the date of signature. Circular No. 122/CP-KTTH dated February 3, 2000 of the Prime Minister regarding the establishment of a Debt Management and Asset Recovery Company for collateral of commercial banks ceases to be effective.
Article 5. The Governor of the State Bank of Vietnam, the Minister of Finance, Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.
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