On March 29, 2024, the State Bank of Vietnam (SBV) organized a virtual Conference to disseminate information on the 2024 Law on Credit Institutions to all of the 63 SBV municipal and provincial branches. The Conference was chaired by Governor Nguyen Thi Hong, with Deputy Governor Doan Thai Son acting as co-chair. Also attending the Conference, there were representatives from the SBV entities, the SBV branches, the credit institutions, Vietnam Banks’ Association and the relevant Ministries and agencies, etc.
Governor Nguyen Thi Hong speaks at the Conference
In her opening speech, Governor Nguyen Thi Hong shared that, during the two years of 2022 and 2023, the SBV had closely coordinated with the relevant Ministries and agencies to formulate the draft Law on Credit Institutions for submission to the Government and the National Assembly (NA) for their approval and final adoption to replace the 2010 Law on Credit Institutions. On January 18, 2024, at the fifth extraordinary session of the 15th NA, the 2024 Law on Credit Institutions was passed by the NA, and it will take effect from July 1, 2024.
Leaders of the SBV chair the Conference
This Conference was aimed to disseminate the specific substances and regulations of the new Law and the tasks to be implemented in the coming time.
Mr. Ta Quang Don, Director General of the SBV Department of Legal Affairs, speaks at the Conference
Accordingly, the new Law is composed of 15 Chapters with 210 Articles. As compared to the 2010 Law on Credit Institutions (as amended and supplemented in 2017), the 2024 Law on Credit Institutions is supplemented with 4 Chapters. Specifically, Chapter II about the types of policy banks (the 2010 Law has only one Article – Article 17 – on policy banks); Chapter IX about early interventions (the 2010 Law has only one Article – Article 130 a – on this aspect); Chapter XI about the special control measures, and solutions to respond to the situations of mass withdrawals at a credit institution; the special lending operations (in the 2010 Law, the regulations on the special lending operations are included in the Chapter about the special controls, and there are no regulations on responses to mass withdrawals at a credit institution); Chapter XII about resolution of non-performing loans (NPL) with collaterals.
Introducing about the 2024 Law on Credit Institutions, Mr. Ta Quang Don, Director General of the SBV Department of Legal Affairs, focused on explaining the new regulations of the Law.
An overview of the Conference
In her concluding remarks at the Conference, Governor Nguyen Thi Hong requested the entire banking sector to urgently implement the following tasks:
For the SBV entities, they are requested to coordinate with the Ministry of Justice and the relevant Ministries and agencies to finalize the by-law documents providing specific guidance for the implementation of the 2024 Law; and to finalize the National Plan for the implementation of the Law on Credit Institutions to be submitted to the Prime Minister for consideration and approval;
Along with that, the SBV entities also need to focus on and urgently develop the guiding documents, which are to be submitted to the SBV Governor, in order to ensure the implementation of the Law on Credit Institutions in alignment with the schedule.
In addition, the SBV entities are also requested to continue to disseminate and communicate about the substances of the 2024 Law; develop a list of FAQs to ensure correct understanding and the consistent implementation of the entire banking sector, etc.
For the credit institutions, they are requested to review their own Charters, the internal documents and regulations to revise, amend, supplement and replace them in order to ensure full consistency with the 2024 Law on Credit Institutions and the by-law guiding documents; organize the dissemination of and communication about the new Law on Credit Institutions to all of their staff and employees, so that they can understand the new substances of the 2024 Law; develop implementation plans for the new regulations with specific timelines in order to ensure compliance with the new regulations.
Le Hang