| THE STATE BANK ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 03/2007/QD-NHNN | Hanoi, January 19, 2007 |
DECISION
AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE REGULATION ON SAFETY ASSURANCE RATIOS IN ACTIVITIES OF CREDIT INSTITUTIONS PROMULGATED TOGETHER WITH THE STATE BANK GOVERNOR'S DECISION NO. 457/2005/QD-NHNN OF APRIL 19, 2005
THE SATE BANK GOVERNOR
Pursuant to December 12, 1997 Law No. 01/1997/QH10 on the State Bank of Vietnam; and June 17, 2003 Law No. 10/2003/QH11 Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to December 12, 1997 Law No. 02/1997/QH10 on Credit Institutions; and June 15, 2004 Law No. 20/2004/QH11 Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Decree No. 86/2002/ND-CP of November 5, 2002, defining the functions, tasks, powers and organizational structures of ministries and ministerial-level agencies;
Pursuant to the Government's Decree No. 52/2003/ND-CP of May 19, 2003, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the proposal of the director of the Department of Banks and Non-Bank Credit Institutions,
DECIDES:
Article 1.-To amend and supplement a number of articles of the Regulation on safety assurance ratios in activities of credit institutions promulgated together with the State Bank Governor's Decision No. 457/2005/QD-NHNN of April 19, 2005, as follows:
1. To amend Clause 9 of Article 2 as follows:
"9. Foreign currency transaction contracts include foreign currency swapping contracts, foreign currency term contracts, future contracts, contracts on the option to select foreign currencies, and other foreign currency transaction contracts according to regulations of the State Bank of Vietnam."
2. To add Clauses 20 and 21 to Article 2 as follows:
"20. Capital contribution and share purchase mean that credit institutions use their charter capital and reserves to contribute to the charter capital of, or purchase shares from, other enterprises or credit institutions; to contribute to investment funds or the execution of investment projects, including entrustment of capital to other legal entities, organizations or enterprises for making investment in the above-mentioned forms.
21. Investments in the form of capital contribution or share purchase in order to hold the right to control enterprises include:
a/ Investments representing 25% or more of the charter capital of a joint stock company;
b/ Investments representing 51% or more of the charter capital of a limited liability company."
3. To amend Points 3 and 4, Clause 3 of Article 3 as follows:
"3.3. Total capital invested by credit institutions in other credit institutions in the form of capital contribution or share purchase and total investments in the form of capital contribution or share purchase for holding the right to control enterprises operating in the domain of insurance or security.
3.4. An excess of 15% of the own capital of a credit institution for the amount of capital it contributes to or uses to purchase shares from, an enterprise, investment fund or project.
An excess of 40% of the own capital of a credit institution for the total amount of capital it contributes to, or uses to purchase shares from, enterprises, investment funds or projects, excluding the above-mentioned excessive 15% already subtracted from the own capital."
4. To amend Item b, Point 1.1.4, Clause 1 of Article 5 as follows:
"b. Other unconditionally revocable commitments."
5. To annul Point b, Clause 4 of Article 6.
6. To amend Point c, Clause 4 of Article 6 as follows:
"c. Receivables from banks established in states other than OECD member states, with a residual maturity of one year or more, and receivables with a residual maturity of one year or more guaranteed by these banks."
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