Circular No. 16/2009/TT-NHNN of August 11, 209, on amendment, supplement of several articles of the regulation on domestic issuance of valuable papers by credit institutions, issued in conjunction with the Decision No. 07/2008/QD-NHNN Dated 24 March 2008

STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness
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No. 16/2009/TT-NHNN

Hanoi, August 11, 2009

 

CIRCULAR

ON AMENDMENT, SUPPLEMENT OF SEVERAL ARTICLES OF THE REGULATION ON DOMESTIC ISSUANCE OF VALUABLE PAPERS BY CREDIT INSTITUTIONS, ISSUED IN CONJUNCTION WITH THE DECISION NO. 07/2008/QD-NHNN DATED 24 MARCH 2008 OF THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam issued in 1997 and the Law on the amendment, supplement of several articles of the Law on the State Bank of Vietnam issued in 2003;
Pursuant to the Law on Credit Institutions issued in 1997, the Law on the amendment, and supplement of several articles of the Law on Credit Institutions issued in 2004;
Pursuant to the Law on Enterprises issued in 2005;
Pursuant to the Law on Securities issued in 2006;
Pursuant to the Ordinance on Foreign Exchange issued in 2005;
Pursuant to the Decree No. 52/2006/ND-CP dated 19/5/2006 of the Government on the issuance of corporate bonds;
Pursuant to the Decree No. 96/2008/ND-CP dated 26/8/2008 of the Government providing for the functions, assignments, authorities and organizational structure of the State Bank of Vietnam;

The State Bank of Vietnam amends, supplements several articles of the Regulation on domestic issuance of valuable papers by credit institutions, issued in conjunction with the Decision No. 07/2008/QD-NHNN dated 24 March 2008 of the Governor of the State Bank as follows:

Article 1. Articles 22, 28, 29, 30, 40, 41 and 42 shall be amended, supplemented as follows:

1. Paragraph 3, Article 22 shall be amended, supplemented as follows:

“3. Business result of the year preceding the issuing year and as of the latest time must be profitable”.

2. Paragraph 3 and 5, Article 28 shall be amended, supplemented as follows:

“3. Business result of the year preceding the issuing year and as of the latest time must be profitable; ratio of bad debt over total outstanding loans of the year preceding the issuing year and as of the latest time must be less than 5”

“5. To be approved by the Governor of the State Bank for the issuance of convertible bonds, warrant-linked bonds of the fiscal year of credit institution. If there is any change in plan of charter capital increase from the source for issuance of convertible bonds, warrant linked bonds which has been approved by Shareholders’ General Meeting, the credit institution must make report to the State Bank (Banking Inspectorate, Supervisory Agency) for the consideration and acceptance by the Governor.”

3. Paragraph 2, Article 29 shall be amended, supplemented as follows:

“2. The plan of charter capital increase from the source for issuance of convertible bonds, warrant-linked bonds of the fiscal year which is adopted by the Shareholders’ General Meeting, clearly states contents in accordance with current provisions of the State Bank on application for approval to the change in charter capital of credit institutions.”

4. Paragraph 2, Article 30 shall be amended, supplemented as follows:

“2. Time limit for considering and making decision on the issuance of convertible bonds, warrant-linked bonds of credit institution shall not exceed 45 working days since the full receipt of the application file from the credit institution.”

5. Paragraph 1, Article 40 shall be amended, supplemented as follows:

“1. To submit the application file for the issuance of long-term valuable papers; Application file for the issuance of convertible bonds, warrant-linked bonds; Notice of issuance of valuable papers by each issue to the State Bank (Department of Monetary Policy); If there is any change in plan of charter capital increase from the source for issuance of convertible bonds, warrant-linked bonds which has been approved by the Shareholders’ General Meeting, credit institutions must make report to the State Bank (Banking Inspectorate, Supervisory Agency) for the consideration and acceptance by the Governor of the State Bank.”

6. Article 41 shall be amended, supplemented as follows:

“To provide specific opinion about the application for the issuance of convertible bonds, warrant-linked bonds of the credit institutions whose head office is located in the local area.”

7. Point b, Paragraph 1, Article 42 shall be amended, supplemented as follows:

“b. To send documents about the plan of charter capital increase from the source for issuance of convertible bonds, warrant-linked bonds of credit institutions to Banking Inspectorate and Supervisory Agency for consideration and submission to the Governor of the State Bank for approval or disapproval to the increase of charter capital from the source for issuance of convertible bonds, warrant-linked bonds of credit institutions.

To preside, coordinate with related units to consider the application for the issuance of long-term valuable papers, application for the issuance of convertible bonds, warrant-linked bonds for submission to the Governor of the State Bank for approval or disapproval to the application of the credit institutions.”

8. Paragraph 2, Article 42 shall be amended, supplemented as follows:

“2. Banking Inspectorate and Supervisory Agency

a. To provide the Department of Monetary Policy with following information:

– Assessments of Banking Inspectorate and Supervisory Agency about organization, operation of credit institution; financial state of credit institution through the on-site inspection, off-site supervision.

– The compliance with limits to ensure the prudential operation of credit institutions in accordance with current provisions of the Law on credit institutions, Law on amendment, supplement of several articles of the Law on credit institutions and guidance of the State Bank.

– Business results of five years preceding the issuing year and as of the latest time of credit institution

– Data about ratio of bad debt over total outstanding loans of the year preceding the issuing year and as of the latest time of credit institutions; data on ratio of earnings after taxes over the owner’s capital as stipulated in Paragraph 4, Article 28 of the Regulation on domestic issuance of valuable papers by credit institution (in case of dealing with the application for the issuance of convertible bonds, warrant linked bonds of the credit institution).

b. To consider submitting the Governor of the State Bank for his approval or disapproval to the plan of charter capital increase from the source for issuance of convertible bonds, warrant linked bonds of the credit institution (including the case where there is any change in the plan) and inform about settlement result to the Monetary Policy Department.

c. To coordinate with the Department of Monetary Policy to consider and provide specific opinion about the approval or disapproval to the application for the issuance of long-term valuable papers, application for the issuance of convertible bonds, warrant-linked bonds of the credit institution.

d. To inspect, supervise the issuance of valuable papers of the credit institution; To deal with violation acts within the scope of their competence and recommend to the Governor of the State Bank for dealing with cases of violating provisions in this Regulation.”

9. To cancel Paragraph 3 of Article 42

Article 2. Implementation organization

1. This Circular shall be effective after 45 days since the date of signing.

2. Director of Administrative Department, Director of Monetary Policy Department and Heads of units of the State Bank of Vietnam; General Manager of State Bank branches in provinces, cities under the central Government’s management; Chairman of Board of Directors, General Director (Director) of credit institutions and valuable papers buyers shall be responsible for the implementation of this Circular.

 

 

FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR

Nguyen Dong Tien

 

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