Circular No. 59/2024/TT-NHNN dated December 31, 2024 on providing amendments to Circular No. 12/2021/TT-NHNN prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches

CIRCULAR

PROVIDING AMENDMENTS TO CIRCULAR NO. 12/2021/TT-NHNN DATED JULY 30, 2021 OF GOVERNOR OF THE STATE BANK OF VIETNAM PRESCRIBING CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES’ TRADING OF PROMISSORY NOTES, TREASURY BILLS, DEPOSIT CERTIFICATES AND BONDS DOMESTICALLY ISSUED BY OTHER CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Law on Securities dated November 26, 2019; the Law providing amendments to Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management and Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Penalties for Administrative Violations dated November 29, 2024;

Pursuant to the Government's Decree No. 102/2022/ND-CP dated December 12, 2022 prescribing functions, tasks, powers and organizational structure of the State Bank of Vietnam (SBV);

At the request of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates a Circular providing amendments to Circular No. 12/2021/TT-NHNN dated July 30, 2021 of the Governor of the State Bank of Vietnam prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches.

Article 1. Amendments to Circular No. 12/2021/TT-NHNN

1. Clause 1 Article 2 is amended as follows:

“1. Credit institutions and foreign bank branches established and operating in accordance with provisions of the Law of Credit Institutions, including: commercial banks, cooperative banks, non-bank credit institutions, and foreign bank branches (hereinafter referred to as “credit institutions, FBBs”).

2. Clause 1 Article 3 is amended as follows:

“1. Credit institutions and FBBs are allowed to carry out trading of valuable papers when such trading activities are permitted by law and fall within the scope of their establishment and operation licenses (for credit institutions) or establishment licenses (for FBBs) issued by SBV (hereinafter referred to as “License”) as follows:

a) Credit institutions (except those specified in point b of this clause), FBBs are allowed to carry out trading of deposit certificates if their license covers trading of other valuable papers; are allowed to carry out trading of bonds issued by other credit institutions if their license covers trading of corporate bonds;

b) Specialized finance companies are allowed to carry out trading of deposit certificates if their license covers trading of deposit certificates domestically issued by credit institutions, FBBs.”

3. Clause 5 Article 3 is amended as follows:

“5. Credit institutions, FBBs (except specialized finance companies) shall carry out trading of bonds domestically issued by other credit institution in accordance with provisions of the Law on Credit Institutions, the Law on Securities, Government’s Decrees on issuance of corporate bonds, legislative documents providing guidance on the Law on Securities, relevant laws and this Circular.”

4. Clause 8 Article 3 is amended as follows:

“8. Credit institutions, FBBs shall only carry out trading of valuable papers issued by general finance companies or specialized finance companies with organizations (including credit institutions, FBBs).”

Article 2. Abrogation of some phrases in Circular No. 12/2021/TT-NHNN

The phrase “kỳ phiếu, tín phiếu” (“promissory notes, treasury bills”) in the Circular No. 12/2021/TT-NHNN (except in clause 2 Article 6) and in the heading of this Circular is abrogated.

Article 3. Responsibility for implementation

The Chief of Office, the Director of the Monetary Policy Department, heads of units affiliated to the State Bank of Vietnam, credit institutions and FBBs are responsible for the implementation of this Circular.

Article 4. Effect

1. This Circular comes into force from March 15, 2025.

2. Credit institutions, FBBs shall carry out trading of promissory notes, treasury bills issued before the effective date of the 2024 the Law on Credit Institutions in the same manner as trading of deposit certificates prescribed in the Circular No. 12/2021/TT-NHNN , as amended in this Circular.