Circular No. 24/2012/TT-NHNN amends and supplements Article 1 of Circular No. 11/2011/TT-NHNN dated April 29, 2011, issued by the Governor of the State Bank of Vietnam on terminating gold deposit-taking and lending activities by credit institutions.

CIRCULAR

Amending and supplementing Article 1 of Circular No. 11/2011/TT-NHNN dated April 29, 2011

of the Governor of the State Bank of Vietnam on terminating

the mobilization and lending of gold capital by 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;

At the proposal of the Head of the Foreign Exchange Management Department,

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing Article 1 of Circular No. 11/2011/TT-NHNN dated April 29, 2011 of the Governor of the State Bank of Vietnam on terminating the mobilization and lending of gold capital by credit institutions (hereinafter referred to as Circular No. 11/2011/TT-NHNN).

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

"Article 1Credit institutions shall not carry out borrowing and lending of gold capital with customers and other credit institutions (including credit contracts already signed but not yet disbursed or partially disbursed); shall not deposit gold at other credit institutions; shall not conduct agency, investment, and other forms of gold-based credit operations; except in special cases, to ensure banking safety, the Governor of the State Bank of Vietnam will consider and decide on the implementation of borrowing and lending of gold capital between certain credit institutions."

Article 2. Implementation clause

1. This Circular takes effect from August 23, 2012.

2. The Director of the Office, the Director of the Banking Inspection and Supervision Department, the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally governed cities; 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./.