REGULATIONS ON OPERATION OF THE COOPERATIVE BANK
On June 17, 2016, the State Bank of Vietnam issued the Circular No. 09/2016/TT-NHNN on amending, supplementing a number of articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the State Bank Governor stipulating on Cooperative Bank; within that the most important content on operations for Member People’s Credit Funds.
Accordingly, beside to receive deposit of capital allocation, lend capital allocation for Member People’s Credit Funds according to Regulations on capital allocation, the Cooperative Bank shall lend Member People’s Credit Funds to deal with temporary difficulties on payment; to open payment account, provide means of payments for Member People’s Credit Funds; to build, develop and apply new products, services in the operation of Member People’s Credit Funds to meet demands of members in People’s Credit Funds and develop benefits of the People in the area.
On the rights of the Cooperative Bank for People’s Credit Funds, the Circular annuls the rights to receive the audit, guidance and audit support for Member People’s Credit Funds, to raise opinions in writing for tentative list of participants that are elected to be as a chair or other members of Management Board, heads and other member of control board, Directors of Member People’s Credit Funds when being requested by the State Bank’s branches in provinces and cities under the central management. Therefore, from August 15, 2016, the Cooperative Bank is only allowed to access to informatics system of the State Bank to collect information related to operation of People’s Credit Funds; request People’s Credit Funds to provide the report to serve for capital allocation and inspect safety of the system; examine, inspect the use of the loan and the ability of People’s Credit Funds to pay for the loan at Cooperative Bank.
This Circular takes effect on August 15, 2016.
