DECISION

ON THE LENDING LIMIT TO A SINGLE CUSTOMER OF CREDIT INSTITUTIONS

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on State Bank of Vietnam No. 01/1997/QH10 and the Law on Credit Institutions No. 02/1997/QH10 dated 12/12/1997;
Pursuant to the Decree No. 15/CP dated 2/3/1993 of Government on the assignment, authority and responsibility for the state management of Ministries, ministry-level agencies;
Upon the proposal of the Director of the Banks and Non-bank Credit Institutions Department,

DECIDES

Article 1.

1. Total outstanding loans extended to a single customer shall not exceed 15% (fifteen percent) of the own capital of the credit institution.

For credit institutions being a foreign bank branch, total outstanding loans extended to a single customer shall not exceed 15% (fifteen percent) of the own capital of such foreign bank.

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3. The provisions stated in Clause 1 of this Article shall not be applied in following cases:

a. The loans which are financed by funds trusted by the Government, organisations, individuals, organnisation, or extended to other credit institutions.

b. The loans for which the maximum lending limit is decided by the Prime Minister.

Article 2.

1. The own capital of a credit institution provided for in Article 1 of this Decision includes its Charter Capital (provided capital, paid-up capital) and its reserve funds for supplementing the Charter Capital.

2. The provisions stated paragraph 1, this Article shall be adjusted in accordance with the activity performance of credit institutions and the respective provision in Article 20 of the Law on Credit Institutions.

3. The own capital of a foreign bank is stipulated by the respective foreign authority.

Article 3.

"A single borrower" provided for in Article 1 of this Decision shall be understood as a legal entity, an individual, a family household, a cooperative, a private enterprise as have been provided for in paragraph 2, Article 2 of the Regulation on lending by Credit institutions to customers promulgated in conjunction with Decision No. 324/QD-NHNN1 dated 30/09/1998 of the Governor of the State Bank of Vietnam.

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Total outstanding loans extended by a credit institution to the borrower being a State-own General Corporation shall include the total outstanding loans borrowed directly by such State-own General Corporation and the total outstanding loans borrowed by its dependent accounting members from that credit institution under the authorization of such State-own General Corporation.

Article 4.

1. Credit institutions shall, upon any change (increase or decrease of their own capital), report the State Bank (the State Bank Inspectorate, the Credit Information Center) in accordance with the Regime for accounting reports and banking statistics information stipulated by the State Bank. The foreign bank branches must report on the change of their foreign banks own capital.

2. Credit institutions shall report the State Bank (through the Credit Information Center of the State Bank) on the borrowers with total outstanding loans of 5% (five percent) upward of the credit institutions own capital.

3. The Credit Information Center of the State Bank shall be responsible for the provision of above-mentioned information to the State Bank Inspectorate and other credit institutions upon their request.

Article 5. This Decision shall be effective after 15 days from the date of its signing. Previous regulations which are contrary to this Decision shall hereby be repealed.

Article 6. The Director of the Administration Department, the Director of the Banks and Non-bank Credit Institutions Department, the Chief of State Bank Inspectorate, the Heads of relevant units of the State Bank, General Manager of State Bank branches, the Chairman and the Directors General (Directors) of the credit institutions shall be responsible for the implementation of this Decision.

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