With a view to enhancing the transparency in entrustment operations, the State Bank of Vietnam (SBV) on March 8 issued Circular No. 04/2012/TT-NHNN, providing for operations of undertaking entrustment or entrusting of credit institutions and foreign bank branches.
Accordingly, an entrusting party may be a commercial bank, finance company, cooperative bank, micro-finance institution or foreign bank branch established and operating under the Law on Credit Institutions. And, an entrusted party may be a commercial bank, finance company, cooperative bank, people’s credit fund, micro-finance institution or foreign bank branch.
Credit institutions and foreign banks branches are allowed to act as entrusted or entrusting parties in one or several banking services in line with the Law on Credit Institutions and their SBV-granted licenses. They are not allowed to undertake entrustments from individuals.
This new regulation takes effect on May 2, 2012, and replaces Decision No. 742/2002/QD-NHNN of July 17, 2002.-