Decision

ON THE LENDING WITHOUT ASSET SECURITY BY CREDIT INSTITUTIONS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam and the Law on the Credit Institutions dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government on the function, assignment, authority and organization structure of the ministries and ministerial-level agencies;
- Pursuant to the paragraph 19 Article 1 of the Decision No. 85/2002/ND-CP dated 25 October, 2002 of the Government on the amendment, supplement of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security of credit institutions;
- Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1:

1. Credit institutions shall base on the Decree No. 85/2002/ND-CP dated 25 October, 2002 of the Government on the amendment, supplement of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security of credit institutions, the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security of credit institutions and implementing documents to issue provisions on the lending without asset security and the level of lending without asset security in order to secure the security of credit activities and be responsible by themselves for their decision.

2. In the lending without asset security, credit institutions shall comply with provisions of the State Bank of Vietnam on prudential ratios, restrictions to ensure the security and make provisions for risks.

Article 2. Following decisions of the Governor of the State Bank of Vietnam shall cease their effectiveness:

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2. The Decision No. 992/2001/QD-NHNN dated 6 August, 2001 on the level of lending without asset security for joint-stock commercial banks, joint-stock finance companies and joint-venture banks;

3. The Decision No. 993/2001/QD-NHNN dated 6 August, 2001 on the level of lending without asset security for the State-owned commercial banks, branches of foreign banks in Vietnam, Finance Companies of State-owned General Corporations and the Bank for the Poor.

Article 3. The Chief Inspector of the State Bank, General Managers of State Bank branches in provinces, cities under the central Governments management and heads of related units of the State Bank, shall be responsible for the inspection, supervision of credit institutions in the compliance with provision of the State Bank of Vietnam on prudential ratios, restrictions to ensure the security and make provisions for risks in order to discover and settle risks timely relating to lending without asset security of credit institutions.

Article 4. This Decision shall be effective from the date of signing.

Article 5. Heads of units of the State Bank of Vietnam, General Managers of State Bank branches in provinces, cities under the central Governments management, the Board of Directors and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

THE GOVERNOR OF THE STATE BANK





Le Duc Thuy