Decision No. 266/2000/QĐ-NHNN on granting unsecured loans to joint-stock commercial banks, joint-stock finance companies, and joint venture banks.

Pursuant to …;

REGARDING UNSECURED LOANS FOR JOINT STOCK COMMERCIAL BANKS, JOINT STOCK FINANCE COMPANIES AND JOINT VENTURE BANKS JOINT STOCK COMMERCIAL BANKS, JOINT STOCK FINANCE COMPANIES AND JOINT VENTURE BANKS

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations dated December 12, 1997;
Pursuant to Decree No. 15/CP dated February 3, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;
Pursuant to Clause 2, Article 21 of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on the guarantee of credit funds of credit organizations;
Article 1.

DECISION:

Article 1- The following regulations are hereby stipulated regarding unsecured loans by joint stock commercial banks, joint stock finance companies, and joint venture banks for borrowers:

1. Joint stock commercial banks, joint stock finance companies, and joint venture banks that satisfy both of the following conditions shall be permitted to provide unsecured loans to borrowers:

a. The ratio of non-performing debt (including overdue debts with recoverable potential, difficult-to-collect debts, pending debt items, and written-off loans reflected in the monthly balance sheet) to total outstanding loans to borrowers is below 5%.

b. The minimum charter capital (reflected in the monthly balance sheet) complies with the provisions set forth in Decree No. 82/1998/NĐ-CP dated October 3, 1998 of the Government on the list of minimum statutory capital requirements for credit institutions.

2. The amount of unsecured loans provided to borrowers by joint stock commercial banks, joint stock finance companies, and joint venture banks that meet the conditions specified in Clause 1 of this Article shall not exceed the level of own capital as prescribed in Clause 1 of Article 2 of Decision No. 296/1999/QĐ-NHNN5 dated August 25, 1999 of the Governor of the State Bank of Vietnam.

Article 2- The amount of unsecured loans provided to borrowers by credit institutions as stipulated in Clause 2 of Article 1 of this Decision does not include the following loan balances: loans designated by the Government; unsecured loans provided according to Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on certain credit policies of banks serving agricultural and rural development; small loans to individual and household poor people guaranteed by political-social organizations under the provisions of Section 3 Chapter IV Circular No. 06/2000/TT-NHNN1 dated April 4, 2000.

Article 3- Joint stock commercial banks, joint stock finance companies, and joint venture banks providing unsecured loans to borrowers shall comply with the provisions of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on collateral for loans by credit institutions and Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank of Vietnam, and other relevant legal documents.

Article 4-

1. This Decision shall take effect fifteen days from the date of issuance.

2. The Director of the State Bank of Vietnam’s Inspectorate and the Directors of the State Bank of Vietnam’s branches in provinces and cities shall be responsible for inspecting and supervising the implementation of this Decision.

3. Heads of units under the State Bank of Vietnam, Directors of the State Bank of Vietnam’s branches in provinces and cities, Boards of Directors, General Managers (Directors) of joint stock commercial banks, joint stock finance companies, and joint venture banks shall be responsible for implementing this Decision./.