Circular No. 26/2011/TT-NHNN Implementing the plan to simplify administrative procedures in the field of monetary activities according to the Government's resolutions on simplifying administrative procedures within the State Bank of Vietnam’s management functions.

CIRCULAR

Regarding the implementation of the plan to simplify administrative procedures in the field of monetary activities according to the Government's resolutions on simplifying administrative procedures within the scope of management functions of the State Bank of Vietnam

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;

Pursuant to Resolution No. 60/NQ-CP dated December 17, 2010 of the Government on simplifying administrative procedures within the scope of management functions of the State Bank of Vietnam;

Pursuant to Resolution No. 64/NQ-CP dated December 21, 2010 of the Government on simplifying administrative procedures within the scope of management functions of the Vietnam Social Policy Bank,

The State Bank of Vietnam (hereinafter referred to as the State Bank) shall amend, supplement, replace, abolish, or revoke certain provisions in documents issued by the State Bank to implement the plan to simplify administrative procedures in the field of monetary activities as follows:

Article 1Amend and supplement some articles of the Discount and Rediscount Regulation of the State Bank for banks issued together with Decision No. 898/2003/QĐ-NHNN dated August 12, 2003 of the Governor of the State Bank to implement the simplification plan at Clause 1, 2 Section I Part A of Resolution 60/NQ-CP as follows:

1. Amending and supplementing Article 10 as follows:

"Article 10. Procedures for performing discount operations

1. Banks (head offices) that wish to discount negotiable instruments must submit a discount request form (Form No. 01) to the State Bank (Trading Department or branches of the State Bank authorized) before 15:00 on transaction days.

In cases where indirect discounting is carried out, banks must send a registration form for participation in discount operations (as per Appendix No. 01a.ĐGH attached hereto) via postal service or directly to the State Bank (Trading Department and Information Technology Department) to serve as the basis for issuing access codes, electronic signature codes, and transaction permissions.

When there is a change in staff involved in discount operations, the bank must submit a new access code application form for electronic signatures (Appendix No. 01b.ĐGH attached hereto) via postal service or directly to the State Bank (Trading Department and Information Technology Department) no later than three working days from the effective date of the bank's decision to replace staff and at least ten days before the staff will participate in transactions. For the case of revoking access codes and electronic signature codes, the bank must immediately notify the State Bank (Trading Department and Information Technology Department) through fax, direct submission, or telephone notification to ensure transaction security.

Within two working days following receipt of complete application files as prescribed, the State Bank (Trading Department and Information Technology Department) will issue new access codes and electronic signature codes for credit institutions' staff involved in discount operations. In cases of revoking access codes and electronic signature codes, the State Bank will immediately carry out the revocation upon receipt of the bank's request.

2. Based on the discount request form and unused discount limit of the bank, the State Bank will examine and decide, and notify acceptance (Form No. 02) or non-acceptance (Form No. 03) no later than two working days from the date of receiving the bank's discount request form.

3. If at the time of announcing the discount limit, the bank's outstanding discount balance with the State Bank exceeds the announced discount limit, previously committed term discounts will still be honored. The State Bank will continue to perform discount operations for the bank only when its outstanding discount balance is below the announced discount limit."

2. Supplement the Discount and Rediscount Regulation of the State Bank for banks issued together with Decision No. 898/2003/QĐ-NHNN dated August 12, 2003 of the Governor of the State Bank with Appendices No. 01a.ĐGH and 01b.ĐGH attached hereto.

Article 2. Amend and supplement some articles of Decision No. 27/2008/QĐ-NHNN dated September 30, 2008 of the Governor of the State Bank on amending and supplementing some articles of the Open Market Operations Regulation issued together with Decision No. 01/2007/QĐ-NHNN dated January 5, 2007 of the Governor of the State Bank to implement the simplification plan at Clause 3 Section I Part A of Resolution 60/NQ-CP as follows:

1. Clause 2 of Article 1 is amended and supplemented as follows:

"Article 5. Recognition of Participants in Open Market Operations

1. Credit institutions recognized as participants in open market operations must meet the following conditions:

1.1. Have an account with the State Bank (State Bank Trading Department or State Bank branch in province/city);

1.2. Possess necessary equipment to participate in open market operations including: fax machine, internet-connected computer;

1.3. Hold a registration form for participation in open market operations (Appendix No. 01/TTM of this regulation);

2. Procedures for recognizing participants in open market operations:

2.1. Credit institutions meeting the conditions stipulated in Clause 1 of this Article must submit a registration form for participation in open market operations (Appendix No. 02a.ĐGH attached hereto) via postal service or directly to the State Bank (Trading Department) to obtain a certificate of recognition as a participant in open market operations.

Within three working days from the date of receiving a valid registration form for participation in open market operations from credit institutions, the State Bank (Trading Department and Information Technology Department) will issue a certificate of recognition as a participant in open market operations, member number, transaction number, electronic signature code, and transaction permissions for credit institutions to conduct transactions through the State Bank network.

2.2. In case there is a change in personnel participating in open market operations transactions with the State Bank, the credit institution shall send a new application for access code and electronic signature issuance for participation in open market operations via postal service or directly to the State Bank (Trading Department and Information Technology Department) (as per Appendix 02b.DGH attached hereto) to complete the procedures for issuing new trading rights, access codes, and electronic signature codes as prescribed. For the case of revoking access codes and electronic signatures, the credit institution must immediately send a request to the State Bank (Trading Department and Information Technology Department) via fax, direct submission, or telephone notification to ensure transaction security.

Within the latest three working days from the date of receipt of the new issuance and revocation applications for access codes and electronic signatures, the State Bank (Trading Department and Information Technology Department) shall implement the issuance of new trading rights, access codes, and electronic signature codes as prescribed. In the case of revoking access codes and electronic signatures, the State Bank will immediately cancel the trading rights and revoke the access codes and electronic signatures upon receipt of the credit institution's request.

3. The certificate recognizing the credit institution as a participant in open market operations automatically ceases to be effective in cases where competent state authorities issue documents regarding the restructuring, dissolution, bankruptcy of the credit institution, or in cases where the State Bank issues notifications that the credit institution does not meet the conditions stipulated in Clause 1 of this Article.

4. The credit institution shall resubmit the registration form for participation in open market operations as per Appendix 02a.DGH to the State Bank (Trading Department) in cases where the credit institution has been restructured or has met the conditions for reissuance of the certificate recognizing it as a participant in open market operations.

2. Appendix 02a.DGH and 02b.DGH attached hereto replace Appendix 01/TTM attached to the Open Market Operations Regulation issued pursuant to Decision No. 01/2007/QD-NHNN dated January 5, 2007, of the Governor of the State Bank.

Article 3. Repeal Point b of Clause 1 of Article 8 of the Government Bond Auction Regulation at the State Bank issued pursuant to Decision No. 935/2004/QD-NHNN dated July 23, 2004, of the State Bank to implement the simplification plan set forth in Item 4 of Section I Part A of Resolution No. 60/NQ-CP.

Article 4Amend and supplement Point b of Clause 1 of Circular No. 06/2009/TT-NHNN dated April 9, 2009, of the State Bank detailing preferential interest rate lending policies under the Program to Support Poor Districts as stipulated in Resolution No. 30a/2008/NQ-CP dated December 27, 2008, of the Government to implement the simplification plan set forth in Point c of Clause 7 of Section I of Resolution No. 64/NQ-CP as follows:

"b. The household head or the authorized representative is the person representing the household in credit relations with the bank."

Article 5. Amend and supplement Clause 5 of Article 1 of Circular No. 16/2009/TT-NHNN dated August 11, 2009, of the State Bank on amending and supplementing certain provisions of the Domestic Securities Issuance Regulation for Credit Institutions issued pursuant to Decision No. 07/2008/QD-NHNN dated March 24, 2008, of the Governor of the State Bank to implement the simplification plan set forth in Clause 84 of Section III Part A of Resolution No. 60/NQ-CP as follows:

"5. Clause 40 is amended and supplemented as follows:"

"1. Submit one set of application documents for long-term securities issuance; Application documents for supplementary issuance plans of long-term securities for the fiscal year; Application documents for convertible bond issuance and warrant-linked bond issuance; Notification of issuance of securities in each series through postal service or direct submission to the State Bank (Monetary Policy Department); If the capital increase plan from convertible bond issuance and warrant-linked bond issuance approved by the Shareholders' Meeting has changed, the credit institution must report to the State Bank (Bank Inspection and Supervision Authority) for the Governor of the State Bank to consider and approve."

Article 6. Implementation Provisions

This Circular takes effect from October 14, 2011.

Article 7. Implementation

The Director of the Office, Heads of relevant units under the State Bank, Governors of State Bank branches in provinces and centrally-administered cities, Chairmen of Management Boards (Boards of Members), General Directors (Directors) of credit institutions, and other related organizations and individuals are responsible for implementing this Circular./.