On August 1, 2023, Deputy Governor Pham Thanh Ha of the State Bank of Vietnam (SBV) chaired a Training Conference on the implementation of Circular No. 06/2023/TT-NHNN (Circular 06) amending and supplementing a number of Articles of Circular No. 39/2016/TT-NHNN dated December 31, 2016 regulating the lending operations of the credit institutions and the foreign bank branches.
In his opening speech, Deputy Governor Pham Thanh Ha emphasized that the issuance of Circular 06 is aimed to further improve the legal frameworks regulating the lending operations of the credit institutions in line with the 2010 Law on Credit Institutions, the 2015 Civil Code, the 2020 Law on Investment, and other applicable provisions of law related to lending operations; help to ensure the safety and the efficiency in the lending operations of the credit institutions, in alignment with the practical situations of the market, the policy on digital transformation of the banking sector, and the requirements of the state management. The regulations as stipulated in Circular 06 provide in detail a number of important substances to resolve the difficulties and obstacles faced by the credit institutions over the past time; ensuring the transparency in the lending operations, protecting the borrowers’ rights and facilitating the people’s and businesses’ access to bank credit.
An overview of the Conference
The SBV Deputy Governor went on to assert that there is one month left before Circular 06 officially takes effect; therefore, the SBV had organized this Training Conference to widely disseminate the provisions of Circular 06 among the entire banking sector.
This new Circular would make big implications on the operations of the credit institutions, as well as on the SBV’s role in related to the monetary and credit operation management. Deputy Governor Pham Thanh Ha requested the credit institutions to obtain good knowledge of the substances in the Circular to improve their internal processes in accordance with the new regulations; provide guidance for the professional operations within their systems as required by laws, ensuring smooth and convenient lending operations; thereby, creating favorable conditions for the people’s and businesses’ access to bank credit.
Ms. Bui Thuy Hang, Deputy Director General of the Monetary Policy Department, briefed of a number of main substances in Circular 06
At the Conference, Ms. Bui Thuy Hang, Deputy Director General of the SBV’s Monetary Policy Department, briefed of a number of main substances in Circular 06, such as: (i) the supplementation of new provisions on lending through electronic means in order to create a legal framework for the lending operations by the credit institutions to their customers in the digital environment; (ii) the supplementation of a number of regulations in order to ensure alignment with the current lending practices of the credit institutions, allowing the borrowers to access bank credit; (iii) the supplementation of the regulations on certain capital demands not eligible for lending by the credit institutions, etc.
Moreover, at the Conference, representatives from the SBV entities shared their perspectives and clarified the specific provisions in Circular 06. The credit institutions were also requested to urgently prepare for the implementation of Circular 06 and promptly report to the SBV on any arising difficulties and obstacles during the implementation.
Le Hang