COMMERCIAL BANKS MUST DEVELOP PROCEDURES FOR TRADING INTEREST RATE DERIVATIVE PRODUCTS BY ELECTRONIC MEANS
The Circular No. 25/2021/TT-NHNN amending and supplementing a number of articles of the Circular No. 01/2015/TT-NHNN dated January 06, 2015, stipulating trading and provision of interest rate derivative products of commercial banks and foreign bank branches is issued on December 31, 2021 by the State Bank of Vietnam.
Specifically, commercial banks and foreign bank branches trading and providing interest rate derivative products by electronic means must develop procedures for trading and providing interest rate derivative products by electronic means in compliance with this Circular, the law on anti-money laundering, e-transactions and relevant laws, ensuring client confidentiality and safety for commercial banks’ and foreign bank branches’ activities.
Besides, credit institutions and foreign bank branches shall be entitled to use interest rate derivative products if satisfying one of the following conditions: Having internal regulations on risk management, specifying the limit of interest rate risk, stop loss limit; total interest rate risk exposure limit for interest rate derivative products; Controlling the net loss limit on using interest rate derivative products.
This Circular takes effect on February 14, 2022.
