DECISION

ON THE AMENDMENT, SUPPLEMENT OF ARTICLE 10 AND ARTICLE 12 OF THE REGULATION ON DISCOUNT, REDISCOUNT OF VALUABLE PAPERS BY THE CREDIT INSTITUTIONS TO CUSTOMERS ISSUED IN CONJUNCTION WITH THE DECISION NO.1325/2004/QD-NHNN DATED 15/10/2004 OF THE GOVERNOR OF STATE BANK

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam issued in 1997; 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, supplement of several articles of the Law on Credit Institutions issued in 2004;

- Pursuant to the Decree No. 52/2003/ND-CP dated May 19th 2003 of the Government providing for the function, assignment, authority and organizational structure of the State Bank of Vietnam;

- Upon the proposal of the Director of Monetary Policy Department,

DECIDES:

Article 1. To amend, supplement Article 10 and Article 12 of the Regulation on the discount, rediscount of valuable papers by credit institutions to customers issued in conjunction with the Decision No.1325/2004/QD-NHNN dated October 15th 2004 of the Governor of the State Bank as follows:

1. Article 10 shall be amended, supplemented as follows:

“Article 10. Discount, rediscount level for a single customer

1. Credit Institutions shall consider and provide for the discount, rediscount level applicable to the following cases in line with provisions of the State Bank of Vietnam on prudential ratios in the activity of credit institutions:

a. The maximum discount, rediscount level for a single customer being a credit institution;

b. The maximum discount level for a single customer not being a credit institution that has a demand for the discount of valuable papers issued by the very credit institution that accepts the discount.

c. The maximum discount level for a single customer not being a credit institution that has a demand for the discount of valuable papers issued by the Government.

2. The maximum discount level for a single customer other than the cases stipulated in Paragraph 1 of this Article shall be equal to 15% of the own capital of the credit institution that accepts the discount. In case of foreign bank’s branches, which are operating in Vietnam, it shall be 15% of the own capital of their mother banks at the maximum.”

2. Article 12 shall be amended, supplemented as follows:

“Article 12. Classifying, setting up and using provisions for dealing with risks concerning the discount, rediscount amount

Credit Institutions shall carry out the classification, setting up and use of provisions for dealing with risk concerning the discount, rediscount amount in accordance with applicable provisions of the State Bank of Vietnam on the classification, setting up and use of provisions for dealing with credit risk in banking activity of credit institutions.”

Article 2. This Decision shall be effective after 15 days since its publication on the Official Gazette.

Article 3. The Director of the Administrative Department, the Director of Monetary Policy Department and Heads of units of the State Bank, Managers of State Bank branches in provinces, cities under the Central Government’s management; the Board of Directors and General Director (Director) of credit institutions shall be responsible for the implementation of this Decision.