Friday, October 4, 2024 6:54:27 AM - Markets open
VN-INDEX 1,278.10 -9.74/-0.76%
HNX-INDEX 233.35 -1.70/-0.72%
UPCOM-INDEX 92.68 -0.60/-0.64%
New policy stipulates special lending cases for credit institutions
vietnamnews - 9/12/2024 2:24:18 PM
 (0 ratings. You must sign in to rate.)
The regulation, under the SBV’s Circular 37/2024/TT-NHNN, stipulates SBV’s special lending cases for credit institutions.
 
 
View of a SCB's transaction office. The central bank will provide special loans to credit institutions that are suffering mass withdrawals. — Photo cafef.vn
 
Credit institutions will receive special loans from the State Bank of Vietnam (SBV) to pay depositors in case they face mass withdrawals, according to a new SBV regulation.
 
According to a circular, this special lending does not include loans with an interest rate of zero per cent per year or loans without collateral, as prescribed by the Law on Credit institutions.
 
The regulation, under the SBV’s Circular 37/2024/TT-NHNN, stipulates SBV’s special lending cases for credit institutions.
 
For the SBV, the source of money for the special lending is taken from performing the function of the central bank in issuing money. The SBV will provide special loans to credit institutions in the four following cases:
 
First, the special lending is given to credit institutions, including commercial banks, cooperative banks, people's credit funds and microfinance institutions, which suffer mass withdrawals for the purpose of paying out to depositors
 
Second, the special loan is given to credit institutions, which are under the SBV’s special control to implement the Government’s approved recovery plans.
 
Thirdly, special lending is given to specially controlled commercial banks, which must implement the approved compulsory transfer plans according to the Law on Credit Institutions.
 
Finally, the special lending is provided to specially controlled commercial banks to support recovery under the approved compulsory transfer plans according to the Law on Credit Institutions.
 
With the Vietnam Cooperative Bank, special loans will be made as people's credit funds suffer a mass withdrawn to pay depositors or People's credit funds are under special control to implement the Government’s approved recovery plans.
 
Special loans from other credit institutions, except the Vietnam Cooperative Bank, will be used to lend to credit institutions that face a mass withdrawals to pay depositors or to lend to credit institutions that are under special controls, to implement approved recovery plans or approved compulsory transfer plans.
 
For all special loans, the SBV will consider and decide on the loan amount, along with the loan term, based on the solvency of the credit institution requesting the loan. A loan term must be less than 12 months, but the SBV can consider extending the term with each time, for less than a further 12 months, based on the solvency of the special borrower or the plan to handle the special loan in the restructuring plan submitted to the SBV.
 
The interest rate for the special loan is equal to the refinancing interest rate at the date of disbursement of the special loan. Meanwhile, the overdue interest rate is equal to 130 per cent of the special loan interest rate. — VNS
 
 
Read original article here
Newer News
30/09 Central bank takes bold actions to stablise gold market
30/09 Tax sector fulfills nearly 85 per cent of State budget collection estimate
30/09 Avoid borrowing to invest amid gold price frenzy: expert
27/09 Family tax deduction rate under review: MoF
26/09 Taxation authority to hold dialogue with taxpayers in five localities
26/09 Ransomware attacks increasingly target Vietnam's financial sector
25/09 Many banks stop transactions of ATM magnetic cards
24/09 PM requests no interruption in petro supply
23/09 Banks register to provide VNĐ405 trillion in loans to support typhoon-affected customers
21/09 VBSP ceases interest collection until year end
Older News
12/09 A common coordination process to handle suspected fraudulent transactions to be developed
11/09 Central bank might work to increase nation’s foreign exchange reserves
10/09 Credit growth target is within reach to contribute to boosting economic growth: SBV
09/09 Reference exchange rate going down at week’s beginning
09/09 CEOs in real estate, financial services, insurance have the highest incomes
04/09 Small banks face more loan delinquencies, liquidity issues
04/09 Ministry of Finance proposes new audit standards, targets large enterprise with stricter fines
04/09 Challenges of collecting e-commerce tax losses
31/08 Govt’ reduces registration fees to boost car sales
29/08 Banks with outstanding loans reaching 80 per cent of allocated credit growth quota allowed to expand credit room automatically
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:03 PM
VN-INDEX 1,278.10 -9.74/-0.76%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.