THE STATE BANK OF VIETNAM
Circular No. 30/2014/TT-NHNN dated November 06, 2014 of the State Bank of Vietnam providing for the entrustment operations and entrustment taking of credit institutions, foreign bank's branches
Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;
Pursuant to the Decree No. 156/2013/ND-CP dated November 11, 2013 of the Government providing for the functions, duties, authorities and organizational structure of State Bank of Vietnam(hereinafter referred to as the State Bank);
At the proposal of the Director of Banking Inspection and Supervision;
The Governor of the State Bank hereby promulgates the Circular on the entrustment operations and entrustment taking of credit institutions, foreign bank's branches;
Chapter I
GENERAL PROVISIONS
Article 1. Scope of application
1. Credit institutions, foreign bank's branches are only permitted for the entrustment operations and entrustment taking as stipulated under this Circular in the following activities:
a) Lending;
b) Financial leasing;
c) Capital contribution, share purchasing;
d) Investment in production business project;
dd) Enterprise bond purchasing;
2. The Government’s entrustment taking of credit institutions, foreign banks’ branches shall be implemented according to the regulations as stipulated by the Government.
Article 2. Scope of application
1. Credit institutions include:
a) Commercial banks;
b) Policy banks;
c) Cooperative banks;
d) Financial companies;
dd) Financial leasing companies;
e) Micro financial organizations;
g) People’s Credit Fund;
2. Foreign banks’ branches;
3. Organizations other than credit institutions, foreign bank's branches in Vietnam (hereinafter referred to as organizations), individuals other than residents, nonresidents related to the entrustment operations, entrustment taking as stipulated under this Circular.
Article 3. Interpretation
In this Circular, following terms shall be construed as follows:
1. Entrustment shall mean the case where the entrusting party assigns the entrusted party to perform operations in accordance with Clause 1 Article 1 of this Circular for the entrustment subjects; the entrusting party shall be obliged to bear all risks, the entrusted party shall enjoy the entrustment fee.
2. The entrustment subject is the subject that shall enjoy the entrustment capital source, including:
a) Individuals, organizations, including credit institutions, foreign bank’s branches being customers that borrow capital, financial leasing;
b) Enterprises, credit institutions that receive the capital contribution, issue bonds, shares;
c) Production business project;
3. Entrustment for lending shall mean the case where the entrusting party entrusts the entrusted party for lending to the customer;
4. Entrustment for financial leasing shall mean the case where the entrusting party entrusts the entrusted party to contribute capital, purchase shares for customers of financial leasing;
