Công văn 3678/NHNN-CSTT của Ngân hàng Nhà nước Việt Nam về việc tình hình ủy thác, nhận ủy thác cho vay

To:

- Foreign bank s branches

- Joint venture banks

- 100% foreign owned banks

Currently, the State Bank of Vietnam is studying and drafting a Circular providing for the entrustment, taking entrustment for lending by credit institutions in accordance with provisions of the Law on Credit Institutions, which shall replace the Decision No. 742/2002/QD-NHNN dated 17 July 2002 of the Governor of the State Bank. As a practical basis for the draft of this Circular, the State Bank of Vietnam hereby kindly requests foreign bank s branches and 100% foreign owned banks (foreign banks), joint venture banks to report some contents as follows:

1. The real situation of entrustment, taking entrustment for lending by foreign banks and joint ventures banks in the past time:

1.1. In regard of the entrustment taking for lending by foreign banks and joint venture banks (entrustment taking party):

a. Matters relating to the entrustment taking by foreign banks and joint venture banks for lending from the Government, credit institutions, other domestic organizations and individuals:

- Up to April 2011, foreign banks and joint venture banks have taken entrustment from which organizations, individuals for lending? To specify name of the entrusting party, for example: Government, credit institutions (commercial banks, finance companies, 100% foreign owned banks, joint venture banks), foreign bank s branches; other domestic organizations, individuals.

- Specific regulations of the foreign banks and joint venture banks on conditions applicable to the entrusting party:

+ For the entrusting party being an entity, what are the conditions? For example: the purpose of entrustment is for lending to particular investment projects, business - production plan; the entrusting party is authorized by the law to perform the entrustment activity; has civil legal capacity, financial capacity, professional capacity in lending operation?…

+ For the entrusting party being an individual, what are the conditions: For example: legal capacity and civil act capacity; other conditions applicable to an entity as mentioned above.

- Method of entrustment:

+ Package entrustment for all phases in the lending process: Appraisement - disbursement - collection of principal and interest debt - classification of debt, making provision and dealing with risk - receipt and disposal of secured assets?

+ Or, entrustment for some phases in the lending process, which phases are they?

- The entrusted capital is in Vietnamese dong or foreign currency?

- Principal terms of the Contract on entrustment and entrustment taking which is signed by the parties? For example: Purpose of the entrustment, capital amount, entrustment fee, lending interest rate applicable to the customer, responsibility of the parties…

- Accounting (on-balance or off-balance) of the foreign bank and joint venture bank (entrust taking party) for the entrusted capital resource and outstanding loan from the entrusted capital resource.

- Classification of debt, making provision and dealing with risk in respect of outstanding loan from the entrusted capital resource shall be performed by the foreign bank and joint venture bank or by the entrusting party?

- What is the entrustment fee that is received by the foreign bank and joint venture bank? On what basis this fee is agreed?

- The receipt of loan secured asset of the customers for the outstanding loan from the entrusted capita resource: The entrusting party or the lending foreign bank and joint venture bank receives secured asset?

- The risks actually arising against the foreign bank and joint venture bank that takes entrusted capital for lending in the past time: What are the risks? Reason for each risk? Measures of preventing from risk of the foreign bank and joint venture bank and the supplement, amendment of the entrustment and entrustment taking mechanism?

b. Matters arising when the foreign bank and joint venture bank takes entrustment from commercial banks, financial - credit institutions, other overseas organizations and individuals (if any): To report similar contents as provided for in point a hereinabove.

1.2. In respect of the capital entrustment activity of the foreign bank and joint venture bank (entrusting party)

a. Matters relating to the capital entrustment by foreign banks and joint venture banks to the Government, credit institutions, other domestic organizations and individuals for lending (To report similar contents as provided for in item a/1.1 hereinabove): (1) Up to April 2011, foreign banks and joint venture banks have entrusted capital to which organizations, individuals for lending? To specify name of the entrusting party; (2) Specific regulations of the foreign banks and joint venture banks on conditions applicable to the entrustment taking party, conditions should be specified?; (3) Method of entrustment is package entrustment and/or entrustment for some phases of the credit process: Appraisement - disbursement - collection of principal and interest debt - classification of debt, making provision and dealing with risk - receipt and disposal of secured assets; (4) Entrusted capital is in Vietnamese dong or foreign currency? (5) Contents of terms and conditions in the Contract of entrustment and entrustment taking; (6) Accounting of the foreign bank and joint venture bank for the entrusted capital amount and outstanding loan to customers from the entrusted capital resource; (7) Classification of debt, making provision and dealing with credit risk; Entrustment fee; (8) What are the risk actually arising against the entrustment activity? Reason and proposing measure for the amendment and supplement of regulations on entrustment and entrustment taking for lending by the State Bank of Vietnam.

b. Matters relating to the capital entrustment by the foreign bank and joint venture bank to credit institutions, other overseas organizations for lending (if any): To report similar contents as provided for in item a/1.1 hereinabove.

2. To report some data about entrustment, entrustment taking for lending by foreign banks and joint ventures banks in line with the form attached herewith.

The Good Bank is requested to send report to the State Bank of Vietnam (Monetary Policy Department) prior to 20 May 2011 at the following address: 49 Ly Thai To, Hoan Kiem, Hanoi; telephone: 04. 38246955; fax: 04. 3824 6953, email:phongcstd@sbv.gov.vn.

Your kind cooperation is much appreciated.

REPORT ON OUTSTANDING LOAN FROM THE ENTRUSTED CAPITAL RESOURCE

Unit: VND billion

Instructions for the form preparation:

- Number of contracts shall mean the number of entrustment contracts which remain effective as of 31 December of every year and 30 April 2011.

REPORT ON OUTSTANDING LOANS AS ENTRUSTMENT

Unit: VND billion

Instructions for the form preparation:

- Number of contracts shall mean the number of entrustment contracts which remain effective as of 31 December of every year and 30 April 2011.

- To specify name of the organizations other than CIs which are entrusted by the foreign bank/joint venture bank.