Circular No. 59/2024/TT-NHNN amends and supplements certain Articles of Circular No. 12/2021/TT-NHNN dated July 30, 2021, issued by the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling promissory notes, acceptance bills, deposit certificates, and bonds issued by other credit institutions and foreign bank branches within the country.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 12/2021/TT-NHNN dated July 30, 2021 issued by the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling promissory notes, acceptance bills, deposit certificates, and bonds issued by other credit institutions and foreign bank branches within the country

Pursuant to the Securities Law dated November 26, 2019; the Law amending and supplementing certain provisions of the Securities Law, Accounting Law, Independent Auditing Law, State Budget Law, Law on Management and Use of Public Assets, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violation Handling Law dated November 29, 2024

The Governor of the State Bank of Vietnam hereby issues this Circular amending and supplementing certain provisions of Circular No. 12/2021/TT-NHNN dated July 30, 2021 issued by the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling promissory notes, acceptance bills, deposit certificates, and bonds issued by other credit institutions and foreign bank branches within the country.

Article 1. Amending and supplementing certain provisions of Circular No. 12/2021/TT-NHNN

1. Amending and supplementing Clause 1 of Article 2 as follows:

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Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

"1. Credit institutions and foreign bank branches established and operating in accordance with the Law on Credit Institutions include commercial banks, cooperative banks, non-bank credit institutions, and foreign bank branches (hereinafter referred to as credit institutions and foreign bank branches).";

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

2. Amending and supplementing Clause 1 of Article 3 as follows:

"1. Credit institutions and foreign bank branches may purchase and sell securities when permitted by law and specified in the License for Establishment and Operation of Credit Institutions and the License for Establishment of Foreign Bank Branches issued by the State Bank of Vietnam (hereinafter referred to as the License) as follows:

a) Credit institutions (except those specified in point b of this clause) and foreign bank branches may purchase and sell deposit certificates when the License includes the purchase and sale of other securities; they may purchase and sell bonds issued by other credit institutions within the country when the License includes the purchase and sale of corporate bonds;

b) Specialized finance companies may purchase and sell deposit certificates when the License includes the purchase and sale of deposit certificates issued by credit institutions and foreign bank branches within the country."

3. Amending and supplementing Clause 5 of Article 3 as follows:

"5. Credit institutions and foreign bank branches (except specialized finance companies) shall purchase and sell bonds issued by other credit institutions within the country in accordance with the provisions of the Law on Credit Institutions, the Securities Law, the Government Decree on Corporate Bond Issuance, other guiding documents of the Securities Law, relevant laws, and the provisions of this Circular."

4. Amending and supplementing Clause 8 of Article 3 as follows:

"8. For securities issued by comprehensive finance companies and specialized finance companies, credit institutions and foreign bank branches may only purchase and sell from organizations (including credit institutions and foreign bank branches)."

3. Amend and supplement Clause 5 of Article 3 as follows:

“5. Credit organizations, foreign bank branches (except specialized finance companies) may purchase and sell bonds issued by other credit organizations within the country in accordance with the provisions of the Law on Credit Organizations, the Securities Law, the Government Decree stipulating corporate bond issuance, other guiding documents for the Securities Law, relevant laws and regulations, and the provisions of this Circular.”

4. Amend and supplement Clause 8 of Article 3 as follows:

“8. For securities issued by consolidated finance companies and specialized finance companies, credit organizations and foreign bank branches may only buy and sell with organizations (including credit organizations and foreign bank branches).”

Article 2. Repeal the phrase in Circular No. 12/2021/TT-NHNN

Delete the phrase "promissory notes, treasury bills" in Circular No. 12/2021/TT-NHNN (except Clause 2, Article 6) and in the name of the Circular.

This Circular takes effect from December 25, 2025/.

The Head of the Office, the Director of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam; credit organizations, foreign bank branches shall be responsible for implementing this Circular.

Article 4. Implementation provisions

1. This Circular shall take effect from March 15, 2025.

2. The purchase and sale of promissory notes and treasury bills issued before the Law on Credit Organizations 2024 comes into effect by credit organizations and foreign bank branches shall be carried out as with the purchase and sale of deposit certificates as provided for in Circular No. 12/2021/TT-NHNN which has been amended and supplemented according to this Circular.