Circular 06/2023/TT-NHNN dated June 28th, 2023 of the State Bank on providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customer

This Circular is to amend, supplement some provisions of Circular No. 39/2016/TT-NHNN regarding lending transactions of banks, including: Article 8 (rejected loan demands); clause 1 Article 11 (regarding currency unit used for debt repayment); clause 2 Article 13 (regarding loan interest rate); clause 4 Article 18 (regarding order for collection of principal and interest amounts); clause 2 Article 22 (regarding contents of internal rules on lending); clause 4 Article 23 (regarding conclusion of a loan agreement); clause 2 Article 24 (regarding inspection and supervision of use of loan); Article 27 (regarding lending methods); Section 3 Chapter II (regarding conditions and lending limit by digital lending method).

Notably, according to the amendments, supplements at Article 8, banks shall not be allowed to approve the following loan demands from September 1st, 2023:

- Loans used for sending money to deposit accounts;

- Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership;

- Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership, or shares of a joint-stock company that is not yet listed on the securities market or registered for trading on the Upcom system;

- Loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects that are unfit for sale or for business operation;

- Loans used for financial offsetting purposes, except for loans meeting all conditions regulated at clause 10 Article 8 amended.

Regarding conditions for digital lending, banks must have level-3 or higher-level security information system; adopt solutions and technologies for identifying its customers and verifying customer identification data; and the outstanding amount of loans for living purposes given to an individual customer shall not exceed VND 100,000,000.

This Circular takes effect from September 1st, 2023.