The Decision supplements and amends the scope of operations of foreign bank branches and joint venture banks operating in Vietnam, allowing them to accept deposits in Vietnamese dong from Vietnamese individuals and legal entities not having credit relationships with the bank, up to a ratio of no more than 20% of the authorized capital or charter capital. At the same time, it permits the provision of guarantees and loans to foreign economic organizations participating in bidding for investment projects in Vietnam.
Scope of application
Foreign bank branches and joint venture banks operating in Vietnam
Key points
- Foreign bank branches and joint venture banks are permitted to accept deposits in Vietnamese dong from Vietnamese individuals and legal entities that do not have credit relationships with the bank, up to a ratio of no more than 20% of the authorized capital of the foreign bank branch or the charter capital of the joint venture bank.
- Foreign bank branches and joint venture banks may provide guarantees for foreign economic organizations participating in bidding for investment projects in Vietnam and provide loans to implement awarded projects.
🌐 Social impact of this document
- Positive impact: Enhances the ability of foreign economic organizations participating in bidding for investment projects in Vietnam to access capital, promoting international financial cooperation.
- Negative impact: May cause credit risks if lending and guarantee activities are not strictly managed.
❓ Frequently asked questions
Who can foreign bank branches accept deposits in Vietnamese dong from?
Foreign bank branches can accept deposits in Vietnamese dong from Vietnamese individuals and legal entities that do not have credit relationships with the bank, up to a ratio of no more than 20% of the authorized capital of the foreign bank branch or the charter capital of the joint venture bank.
What is the ratio of deposits in Vietnamese dong that foreign bank branches can accept?
A ratio of no more than 20% of the authorized capital of the foreign bank branch or the charter capital of the joint venture bank.
For whom can foreign bank branches and joint venture banks provide guarantees?
Foreign bank branches and joint venture banks can provide guarantees for foreign economic organizations participating in bidding for investment projects in Vietnam.
To whom can foreign bank branches provide loans?
Foreign bank branches and joint venture banks can provide guarantees for foreign economic organizations participating in bidding for investment projects in Vietnam and provide loans to implement awarded projects.
When does this Decision take effect?
This Decision takes effect from September 1, 1994.
Full text
Pursuant to …;
SUPPLEMENTING AND AMENDING THE CONTENT AND SCOPE OF OPERATIONS OF FOREIGN BANK BRANCHES, JOINT-VENTURE BANKS OPERATING IN VIETNAM
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to the State Bank of Vietnam Ordinance, the Banking Ordinance, Credit Cooperatives and Financial Companies Ordinance promulgated by Decree No. 37/LCT-HDNN8 and Decree No. 38/LCT-HDNN8 dated May 24, 1990 of the Council of State;
Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and agencies at the ministerial level;
Pursuant to Decree No. 189/HDBT dated June 15, 1991 of the Council of Ministers on the Regulations for Foreign Bank Branches and Joint-Venture Banks Operating in Vietnam;
At the proposal of the Director of the Financial Institutions Department,
Pursuant to …;
Article 1. Now supplementing the content of operations stipulated in the Banking Operation License issued by the State Bank of Vietnam for Foreign Bank Branches and Joint-Venture Banks operating in Vietnam, as follows:
1. Foreign Bank Branches and Joint-Venture Banks operating in Vietnam are permitted to accept deposits in Vietnamese Dong (VND) from individuals who are Vietnamese citizens and organizations which are Vietnamese legal entities without credit relations with the bank, up to a maximum of 20% of the capital granted to foreign bank branches or the charter capital of joint-venture banks.
2. Foreign Bank Branches and Joint-Venture Banks operating in Vietnam are allowed to provide guarantees for foreign economic organizations participating in bidding for investment projects in Vietnam and to lend to these entities to implement awarded projects in Vietnam.
Article 2. This Decision takes effect from September 1, 1994. The Director of the Governor's Office, Heads of the Financial Institutions Department, Heads of Departments and Bureaus related at the Central Bank, General Directors of foreign bank branches and joint-venture banks operating in Vietnam shall be responsible for implementing this Decision.
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