Decision No. 51/2007/QD-NHNN on the issuance of the credit information operation regulations

Pursuant to …;

Regarding the issuance of the Credit Information Disclosure Regulation

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GOVERNOR OF THE STATE BANK OF VIETNAM

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

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

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

At the proposal of the Director of the Credit Information Center,

DECISION:

Article 1. The Credit Information Disclosure Regulation is hereby promulgated together with this Decision.

Article 2. This Decision shall take effect from July 1, 2008 and replace the following Decisions:

- Decision No. 1117/2004/QĐ-NHNN dated September 8, 2004 of the Governor of the State Bank of Vietnam on the issuance of the Credit Information Disclosure Regulation;

- Decision No. 1003/2005/QĐ-NHNN dated July 8, 2005 of the Governor of the State Bank of Vietnam on amending and supplementing the Appendix for classifying outstanding debts (attached to Form K3 - Customer Debt Report) in the Credit Information Disclosure Regulation issued together with Decision No. 1117/2004/QĐ-NHNN dated September 8, 2004 of the Governor of the State Bank of Vietnam;

- Decision No. 50/2006/QĐ-NHNN dated October 2, 2006 of the Governor of the State Bank of Vietnam on supplementing and replacing the Information Collection Form and the Appendix for classifying outstanding debts in the Credit Information Disclosure Regulation issued together with Decision No. 1117/2004/QĐ-NHNN dated September 8, 2004 and Decision No. 1003/2005/QĐ-NHNN dated July 8, 2005 of the Governor of the State Bank of Vietnam;

- Decision No. 987/2001/QĐ-NHNN dated August 2, 2001 of the Governor of the State Bank of Vietnam on the issuance of the Regulation on Management, Provision, and Utilization of Credit Information.

Article 3. The Heads of the Office, Heads of Units under the State Bank of Vietnam, Directors of the Credit Information Center, Directors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, Heads of the State Bank of Vietnam Representative Offices in Ho Chi Minh City, Chairmen of the Boards of Directors, General Managers (Directors) of credit organizations, other organizations engaged in banking activities, and related organizations and individuals are responsible for implementing this Decision.

                                                                                                DIRECTOR
                                                                                                DEPUTY GOVERNOR



 
                                                                                                Nguyen Toan Thang

REGULATIONS

Credit Information Activities
(issued together with Decision No. 51/2007/QĐ-NHNN dated December 31, 2007 of the Governor of the State Bank of Vietnam)

_____________________

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Regulation governs credit information activities of the State Bank of Vietnam, credit organizations, other organizations engaged in banking activities, and individuals using credit information services, aiming to serve the management work of the State Bank of Vietnam, prevent and limit credit risks, and contribute to ensuring the safety of banking operations and economic and social development.

Article 2. Applicability

1. Units under the State Bank of Vietnam:

a) The Credit Information Center;

b) Departments, Bureaus, and units under the State Bank of Vietnam;

c) State Bank of Vietnam branches in provinces and centrally-administered cities.

2. Credit organizations, other organizations engaged in banking activities.

3. Organizations and individuals using credit information services.

Article 3. Definitions

In this Regulation, the following terms shall be understood as follows:

1. Credit information includes information about customers having credit relations with credit organizations, other organizations engaged in banking activities, and other information related to customers in their credit relations with credit organizations, other organizations engaged in banking activities.

2. Credit information activities involve collecting, processing, storing, providing, and utilizing credit information.

3. Credit information products include periodic and ad hoc credit information reports and publications developed by the Credit Information Center based on analyzing, summarizing, and evaluating information about customers having credit relations with credit organizations, other organizations engaged in banking activities.

4. Credit information services involve providing credit information products; supporting solutions for credit information management and credit risk management: supporting, advising, transferring technology for credit information management software; advising and supporting in searching for credit information.

5. Customers having credit relations with credit organizations, other organizations engaged in banking activities include:

a) Customers who are organizations; state-owned enterprises, cooperatives, limited liability companies, joint-stock companies, private enterprises, partnerships, foreign-invested enterprises, and other organizations (excluding entities specified in Clause 2, Article 2 of this Regulation);

Groups, holding companies, parent companies, and each independent accounting unit are considered separate customers.

b) Customers who are individuals, households, cooperative groups;

c) Credit card holders (individuals or organizations issued credit cards by credit organizations, other organizations engaged in banking activities) including primary cardholders and secondary cardholders.

Article 4. Reporting credit information indicators

1. Credit organizations, other organizations engaged in banking activities must report to the Credit Information Center - State Bank of Vietnam credit information indicators according to the Appendix System of Credit Information Reporting Indicators attached to this Regulation.

2. Content and time of reporting

2.1. Information about the legal documents of customers having credit relations with credit organizations, other organizations engaged in banking activities, the latest reporting deadline being within three working days from the date of establishing the first credit relationship or when there is a change in legal document information. Specifically as follows:

a) For organizational customers: including general customer borrowing information indicators (numbered from 01 to 18) and specific information indicators for organizational customers (numbered from 19 to 33);

b) For individual customers, households, and cooperative organizations: including general customer information indicators for borrowers (with serial numbers from 01 to 18) and specific information for individual, household, and cooperative organization customers (with serial numbers 26 and from 34 to 39);

c) For credit card holders: including general customer information indicators for borrowers (with serial numbers from 01 to 18) and specific information for credit card holders, including collateral information for loaned funds and credit limit of the credit card (with serial numbers from 34 to 47 and from 233 to 236, 246, 247, 267, 296);

2.2. Financial information of organizational customers includes: balance sheet, income statement, and cash flow statement (if applicable) according to the model prescribed by the Ministry of Finance. The deadline for submitting these reports to the Credit Information Center is no later than three working days from the date the customer first establishes a credit relationship or no later than April 15 of the following year for ongoing credit relationships.

2.3. Customer debt information (reported when there is a change in debt), reported periodically every three working days and on the last working day of each month, including the following indicators: customer code, customer name, customer debt information, and detailed information on each classified loan (with serial numbers 01, 02, from 48 to 232). Individual, household, and cooperative organization customers also report additional consumer lending information (with serial numbers from 290 to 295).

2.4. Loan collateral information of customers, with the latest reporting deadline being three working days from the date the customer first establishes a borrowing relationship or when there is a change in information.

a) In the case of unsecured loans, report the following indicators: customer code, customer name, customer address, and loan collateral information (with serial numbers 01, 02, 06 and from 233 to 237).

b) In the case of secured loans, report the following indicators: customer code, customer name, customer address, and loan collateral information (with serial numbers 01, 02, 06 and from 238 to 269). If the borrower uses third-party collateral, report additional owner information (serial number 270) including the owner's name, address, identification card or passport (with serial numbers 02, 06 and from 35 to 38).

2.5. Guarantee information for customers, with the latest reporting deadline being the tenth day of the next month following the end of the previous month (when there is a change), including the following indicators: customer code, customer name, customer address, and guarantee information for customers (with serial numbers 01, 02, 06 and from 271 to 289).

2.6. Credit card debt information (reported when there is a change), reported monthly on the last working day of the month, including the following indicators: customer code, customer name, and credit card debt information (with serial numbers 01, 02 and from 48 to 59).

2.7. Information on customers with total debt equal to or exceeding 15% of the credit institution's capital, reported periodically every five working days and on the last working day of the month, including the following indicators: customer code, customer name, customer address, and information on customers with total debt equal to or greater than 15% of the credit institution's capital (with serial numbers 01, 02, 06 and from 299 to 307).

2.8. Information on violations related to credit cards, reported monthly on the last working day of the month, including the following indicators: customer code, customer name, and credit card information (with serial numbers 01, 02, 297 and 298).

3. Reporting methods are conducted in electronic file format according to detailed guidelines provided by the Credit Information Center. Financial information of customers is reported in written form.

Article 5. Processing, storage, and provision, exploitation, and utilization of information

1. Credit information processing is carried out at the Credit Information Center through verification, screening, ensuring the reliability of incoming information, and analyzing and synthesizing information, including credit rating analysis for businesses and credit scoring for individual consumers, to create credit information products.

2. Storage of credit information

a) Credit information is stored and managed to ensure safety, confidentiality, and ease of access and use at the Credit Information Center and backup facilities.

b) The retention period for credit information of a customer is five years from the date of the last update of credit information.

3. The Credit Information Center provides credit information products and charges service fees according to regulations set by the Governor of the State Bank.

4. Exploitation and utilization of credit information

4.1. The Credit Information Center facilitates the exploitation and utilization of credit information products.

4.2. Organizations and individuals exploiting and utilizing credit information products must comply with the following provisions:

a) Use credit information products for purposes specified in Article 1 of this Regulation.

b) Do not provide credit information products of the Credit Information Center to other organizations or individuals.

Chapter II

RESPONSIBILITIES AND LIMITATIONS OF ORGANIZATIONS AND INDIVIDUALS PARTICIPATING IN CREDIT INFORMATION ACTIVITIES

Article 6. Credit Information Center

1. Responsibilities

a) Serve as the main management body, guiding, and urging the implementation of credit information activities within its authority;

b) Develop and guide systems of codes, information indicators, electronic file templates, and common standards related to credit information activities for participating organizations and individuals;

c) Receive, process credit information, and organize, build, and manage the national credit information database;

d) Provide credit information to the leadership of the State Bank and units under the State Bank as prescribed;

e) Provide credit information services to entities specified in Clause 2 and 3 of Article 2 of this Regulation;

g) Support training of credit information professionals for participating organizations upon request.

2. Authorities

a) Request organizations participating in credit information activities to provide complete, accurate, and timely credit information reporting indicators as prescribed in Article 4 of this Regulation;

b) Take the lead and coordinate with units under the State Bank, credit institutions, and other entities engaged in banking activities in implementing credit information activities;

c) Inspect the reporting and quality of credit information of credit institutions and other entities engaged in banking activities according to this Regulation;

d) Be entitled to refuse to provide credit information services to entities that do not comply with the provisions of this Regulation.

Article 7. Departments, Bureaus, and units under the State Bank

1. Have the responsibility to cooperate and provide relevant information within their management scope to the Credit Information Center for the implementation of activities and the construction of the national credit information database as prescribed;

2. Have the right to exploit and use credit information products to serve state management tasks;

3. The State Bank Inspectorate has the responsibility to organize inspections of credit institutions and other entities engaged in banking activities in compliance with this Regulation;

Article 8. The State Bank of Vietnam branch in provinces and centrally governed cities

1. Responsibilities

a) Arrange organizational structures, personnel, and related conditions to implement credit information operations at the unit;

b) Urge and inspect credit institutions, branches of credit institutions, and other entities engaged in banking activities within their jurisdiction to implement this Regulation;

2. Authorities

a) Be entitled to exploit and use credit information products to serve the management tasks of the State Bank within their jurisdiction;

b) Be entitled to organize the exploitation and provision of credit information products according to the guidance of the Credit Information Center to credit institutions, branches of credit institutions, and other entities engaged in banking activities within their jurisdiction;

c) Be supported by the Credit Information Center in training staff for credit information operations;

Article 9. Credit institutions and other entities engaged in banking activities

1. Responsibilities

a) Bear responsibility for the completeness, honesty, accuracy, and timeliness of credit information reporting indicators provided to the Credit Information Center;

b) Develop technical procedures, security measures, customer codes, and adhere to common standards related to credit information activities as guided by the Credit Information Center to ensure uniformity and safety;

c) Exploit and use credit information products to prevent and mitigate risks and improve credit quality;

2. Authorities:

a) Be entitled to exploit and use credit information products;

b) Be entitled to request the Credit Information Center to verify the accuracy and currency of credit information provided by the Credit Information Center;

c) Be supported by the Credit Information Center in training and guiding staff for credit information operations;

Article 10. Organizations and individuals using credit information

Organizations and individuals desiring to exploit and use credit information products must submit requests for exploiting and using credit information to the Credit Information Center and must comply with regulations on the use of credit information as prescribed in this Regulation;

Chapter III

REWARD AND VIOLATION HANDLING

Article 11. Awards

Annually, the Credit Information Center reports to the Governor of the State Bank on the results of credit information activities for consideration of rewards for organizations and individuals with outstanding achievements in credit information activities;

Article 12. Handling of violations

Organizations and individuals violating the provisions of this Regulation may be subject to administrative penalties depending on the nature and severity of the violation according to current regulations;

Chapter VI

IMPLEMENTING PROVISIONS

Article 13. The Director of the Credit Information Center is responsible for guiding the implementation of this Regulation./.