Decision No. 17/2006/QD-NHNN on amending and supplementing Article 10 and Article 12 of the Discount and Re-discount Regulations for customers issued pursuant to Decision No. 1325/2004/QD-NHNN dated October 15, 2004 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Amending and supplementing Article 10 and Article 12 of the Discount and Re-discount Rules for Valuable Paper of Credit Institutions for Customers issued pursuant to Decision No. 1325/2004/QĐ-NHNN dated October 15, 2004 of the Governor of the State Bank of Vietnam

regarding the discounting of negotiable instruments by credit institutions for customers

issued pursuant to Decision No. 1325/2004/QD-NHNN dated

October 15, 2004 of the Governor of the State Bank of Vietnam

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Institutions 1997; the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions 2004;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Monetary Policy Department.

Pursuant to …;

Article 1. Amending and supplementing Article 10 and Article 12 of the Discount and Re-discount Rules for Valuable Paper of Credit Institutions for Customers issued pursuant to Decision No. 1325/2004/QĐ-NHNN dated October 15, 2004 of the Governor of the State Bank of Vietnam as follows:

1. Article 10 shall be amended and supplemented as follows:

"Article 10. Maximum discount and re-discount rate for a customer

1. Credit institutions shall consider setting the maximum discount and re-discount rates for the following cases in accordance with the regulations of the State Bank of Vietnam regarding safety ratios in credit institution operations:

a. The maximum discount and re-discount rate for a customer that is a credit institution;

b. The maximum discount rate for a non-credit institution customer who requests to discount valuable paper issued by the credit institution itself;

c. The maximum discount rate for a non-credit institution customer who requests to discount valuable paper issued by the Government.

2. For a non-credit institution customer not falling under the cases specified in Clause 1 of this Article, the maximum discount rate shall be 15% of the credit institution's own capital. In the case of a foreign bank branch operating in Vietnam, this maximum discount rate shall be 15% of the parent bank's own capital."

3. Article 16 shall be amended and supplemented as follows:

"Article 12. Classification, provision, and utilization of provisions for risk management related to discounted and re-discounted amounts

Credit institutions shall implement the classification, provision, and utilization of provisions for risk management related to discounted and re-discounted amounts in accordance with the regulations of the State Bank of Vietnam on loan classification, provision, and utilization of provisions for risk management in banking activities of credit institutions."

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Head of the Office, the Director of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities; the Boards of Directors and General Directors (Directors) of credit institutions are responsible for implementing this Decision./.