The SBV on February 16 issued Circular No. 01/2012/TT-NHNN on discounting of SBV’s valuable papers with credit institutions and foreign bank branches.
This Circular applies to commercial banks, non-bank credit institutions, foreign bank branches, and the Central People’s Credit Fund pending its transformation into the Cooperative Bank.
Valuable papers eligible for discount at SBV must be issued in
The residual term of to be-discounted valuable papers must be not more than 91 days, in case of whole discount, or longer than SBV’s discount term, in case of termed discount.
A credit institution or foreign bank branch may conduct discount transactions with SBV directly or through SBV’s monetary market operation network for the confidential purpose.
To be eligible for discount operation, a credit institution or foreign bank branch operations must not be under the special control, have no overdue debt at SBV by the time of discount request, have an active deposit account opened at SBV; file promptly a dossier requesting notification of valuable paper discount limits with SBV; and have to-be-discounted valuable papers satisfying conditions for discount.
In case of indirect transaction mode, credit institutions and foreign bank branches must fully be equipped with information technology devices and equipment, transmission lines and connections with SBV’s server.
This Circular takes effect on March 31, 2012, and replaces Decisions No. 898/2003/QD-NHNN of August 12, 2003, and No. 12/2008/QD-NHNN of April 29, 2008, and Article 1 of Circular No. 26/2011/TT-NHNN of August 31, 2011.-