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| Clients may not borrow loans for making new deposits or paying other loans__Photo: vnexpress.vn |
The State Bank Governor on June 28 issued Circular 06/2023/TT-NHNN, revising a number of articles of Circular 39 of 2016, on lending operation by credit institutions and foreign bank branches, adding cases in which potential clients are not eligible for bank loans.
Compared to Circular 39, the new rule adds four new cases ineligible for loan borrowing.
Specifically, clients may not borrow loans for making new deposits or paying other loans.
Likewise, loans will not be provided for payment for the purchase of shares or contribution of capital or acquisition of capital contributions to limited liability companies or partnerships; or purchase of shares or contribution of capital or acquisition of shares of joint-stock companies that have not been listed on the stock market or registered for trading on the Upcom trading system.
In addition, credit institutions and foreign bank branches may not provide loans for clients to make capital contributions for implementation of investment projects ineligible for being put into business in accordance with law at the time the banks decide to provide such loans.
Worthy of note, the new Circular additionally regulates the provision of loans by electronic means.
Accordingly, banks may provide loans by electronic means suitable to their business operation conditions and loan characteristics, provided that they are able to ensure security and safety, protect data messages and keep confidential information in accordance with law.
At the same time, information systems used for e-lending activities must ensure information safety at level 3 or higher under the Government’s regulations. The new regulation also requires credit institutions to store and preserve information and data and ensure their safety and confidentiality in accordance with law. Banks must also make backup copies of files so that data can be accessed and used when necessary or for the purposes of inspection, collation, and settlement of complaints and disputes, or for provision to competent state agencies when so requested.- (VLLF)
