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Knowledge Highlights 23 July 2024
On 1 September 2023, Circular No. 06/2023/TT-NHNN of State Bank of Vietnam (“SBV”) (“Circular 6”) came into effect. Circular 6, issued on 28 June 2023, amends Circular No. 39/2016/TT-NHNN (“Circular 39”) which regulates lending activities of credit institutions such as commercial banks and foreign bank branches (“credit institutions”).
This article highlights some of the key points of Circular 6.
New lending restrictions introduced but subsequently suspended
Circular 6 supplements Circular 39 to include the following types of loans which credit institutions shall not be permitted to grant:
It should be noted, however, that the subsequently issued Circular No. 10/2023/TT-NHNN, which also came into effect on 1 September 2023, suspends the implementation of these new restrictions meaning that credit institutions can continue to extend loans for these purposes until further implementing regulations are issued by the SBV.
New regulations on e-lending
In order to lend via electronic means, credit institutions must do so in a manner that complies with their business operation conditions and the characteristics of the loan. Circular 6 also requires credit institutions to ensure the security and safety of data messages and keep information confidential in accordance with the provisions of the Law on Anti-Money Laundering, e-transactions, guidance of the State Bank of Vietnam on risk management and other relevant legislation.
The systems utilised to conduct e-lending must satisfy level-3 or higher-level information system security requirements provided in the regulations on the security of information systems in banking operations.
Credit institutions must also:
Know-Your-Client requirements
Circular 6 specifies that credit institutions engaged in e-lending:
Other e-lending requirements
Circular 6 stipulates that loan agreements shall be made in writing, and where they are e-contracts, comply with the law on e-transactions. Credit institutions must also create and maintain loan dossiers in the form of data messages in conformity with the provisions of the law on archiving, the law on e-transactions and relevant laws, and include the loan agreement, report on financial status, loan decision e-signed by a competent person, customer identification information and date, information and data arising during the loan term.