On Jan. 7, 2025, VIE GVT published VIE CB circular regarding Regulation on credit institutions and foreign bank branches buying and selling deposit certificates and bonds issued domestically by other credit institutions and foreign bank branches.
The circular covers ownership transfers of valuable papers without buy-back commitments, excluding international and government-backed bond transactions.
Eligible entities include domestic credit institutions, foreign bank branches, and Vietnamese or foreign organizations and individuals engaging with them.
Transactions must adhere to legal and licensing terms, be conducted in VND, and involve papers that are legally owned, undisputed, and free from encumbrances.
Foreign bank branches cannot purchase convertible bonds, deposit certificates must have under 12 months remaining; transaction agreements must include details about the buyer, seller, terms of the papers, payment details, and mutual obligations.
Credit institutions, foreign bank branches are required to establish internal regulations.
Document dated Jan. 7, 2025, received from VIE GVT Jan. 9, summarized Jan. 10.
On Jul. 23, VIE CB proposed amendments, clarification to regulations.
VIE CB proposed amendments to provisions of circular 12/2021/TT-NHNN dated Jul. 30, 2021, concerning purchase and sale of promissory notes, certificates of deposit, and bonds issued domestically by foreign bank branches as well as other FIs.
Follows VIE CB Mar. 2021 issued circular on issuances by foreign banks, see #101960.
Amendments
Align with Law on credit institutions 2024, which states that general finance companies are allowed to buy and sell corporate bonds and other valuable papers; specialized finance companies can buy and sell certificates of deposit that are issued domestically.
Remove outdated terms such as promissory notes, treasury bills from existing regs.
Specify enforcement provisions for transactions of promissory notes issued before the maturity date according to the amended regulations until their maturity.
Consultation End
The consultation is open for opinions but no consultation end date is given.
Dec. 2024 Amendments Finalized
On Dec. 31, 2024, VIE CB issued circular to finalize proposal above, to update rules on credit institutions and foreign bank branches that are trading financial instruments.
Refines scope, conditions under which credit institutions and foreign bank branches can buy, sell certain financial instruments, emphasizing certificates of deposit/bonds.
Promissory notes and treasury bills phased out from scope of allowed transactions.
The amendments are effective from Mar. 15, 2025.
Document dated Dec. 31, 2024, received from VIE CB Jan. 2, summarized Jan. 7.
Jan. 2025 Press Release
On Jan. 2, 2025, VIE CB issued press release re issuance of circular 59/2024/TT-NHNN.
Document dated Jan. 2, 2025, received from VIE CB Jan. 7, summarized Jan. 9.
Jan. 2025 VIE GVT Published VIE CB Circular
On Jan. 7, 2025, VIE GVT published VIE CB circular regarding Regulation on credit institutions and foreign bank branches buying and selling deposit certificates and bonds issued domestically by other credit institutions and foreign bank branches.
The circular covers ownership transfers of valuable papers without buy-back commitments, excluding international and government-backed bond transactions.
Eligible entities include domestic credit institutions, foreign bank branches, and Vietnamese or foreign organizations and individuals engaging with them.
Transactions must adhere to legal and licensing terms, be conducted in VND, and involve papers that are legally owned, undisputed, and free from encumbrances.
Foreign bank branches cannot purchase convertible bonds, deposit certificates must have under 12 months remaining; transaction agreements must include details about the buyer, seller, terms of the papers, payment details, and mutual obligations.
Credit institutions, foreign bank branches are required to establish internal regulations.
Document dated Jan. 7, 2025, received from VIE GVT Jan. 9, summarized Jan. 10.
