Implementing the Law on Credit Institutions

Photo caption — The National Assembly voted to pass the Law on Credit Institutions (amended).

Accordingly, in the first and second quarters of 2024 and subsequent years, the State Bank of Vietnam will take the lead in organizing the dissemination and understanding of the provisions of the law.

In 2024 and subsequent years, the State Bank of Vietnam; ministries and ministerial-level agencies; People's Committees of provinces and centrally-administered cities; and media and press agencies shall publish the full text of the law and its detailed regulations on the national legal document portal/website; compile materials for disseminating the law and coordinate with the Ministry of Justice to update them on the national legal education and dissemination portal; and organize the dissemination of the law and its detailed regulations through mass media and other appropriate forms of dissemination and communication.

In April 2024, the State Bank of Vietnam chaired a review of legal documents related to the Law within its authority; promptly amending, supplementing, replacing, repealing, or issuing new legal documents to ensure compliance with the provisions of the Law and its subordinate regulations.

The State Bank of Vietnam and the Ministry of Finance, in coordination with the Ministry of Justice, the Government Office, and other ministries, sectors, and localities, shall develop and submit to the Government for promulgation, and promulgate within their authority, detailed regulations implementing laws according to the list and schedule stipulated in the Prime Minister's Decision on the promulgation of the list and assignment of agencies to draft detailed regulations implementing laws and resolutions passed by the 15th National Assembly at its 5th Extraordinary Session (drafted by the Ministry of Justice).

The State Bank of Vietnam, the Ministry of Finance, the Ministry of Labour, Invalids and Social Affairs, the Ministry of Justice, and the Ministry of Natural Resources and Environment shall review the provisions of the Law on Credit Institutions and assign them to the Government and the Prime Minister to issue, within their respective authorities, and develop and submit to competent authorities amendments, supplements, and guiding documents for the implementation of the Law on Credit Institutions within their respective authorities, ensuring compliance with the effective date of the Law on Credit Institutions from July 1, 2024.

The provisions of the Law on Credit Institutions stipulate the responsibilities of the following ministries and agencies: The State Bank of Vietnam shall review and develop a Government Decree regulating the organization and operation of the Social Policy Bank (Clause 2, Article 16; Clause 2, Article 17; Clause 1, Article 19; Clause 4, Article 20; Clause 4, Article 22; Article 26 of the Law); a Government Decree regulating the licensing conditions of credit institutions and branches of foreign banks (Clause 5, Article 29 of the Law); a Government Decree regulating non-cash payments (Clause 2, Article 110 of the Law); and a Government Decree regulating microfinance programs of socio-political organizations and non-governmental organizations (Clause 13, Article 210 of the Law). The Prime Minister's decision stipulates the conditions, documents, and procedures for requesting approval of the maximum credit limit exceeding the limit of credit institutions and branches of foreign banks (Clause 7, Article 136 of the law) and other relevant provisions of the law.

The Ministry of Finance is reviewing and drafting a Government Decree regulating the organization and operation of the Vietnam Development Bank (Clause 2, Article 16; Clause 2, Article 17; Clause 1, Article 19; Clause 4, Article 20; Clause 4, Article 22; Article 26 of the Law), a Government Decree regulating the financial mechanism of the policy bank (Article 26 of the Law), and other relevant provisions of the Law.

The Ministry of Labour, Invalids and Social Affairs is reviewing and drafting a Government decree regulating the salary and allowance regime for officials and employees of the policy bank (Article 26 of the law) and other related provisions of the law.

The Ministry of Natural Resources and Environment is reviewing and drafting a Government decree regulating the registration of land use rights changes for collateral assets that are land use rights and assets attached to land related to debts originating from bad debts of credit institutions and branches of foreign banks (Clause 4, Article 198 of the law) and other relevant provisions of the law.

The Ministry of Justice is reviewing and drafting a Government decree regulating the registration of mortgages on land use rights, assets attached to land, and assets attached to land that will be formed in the future, related to debts originating from non-performing loans of credit institutions and branches of foreign banks (Clause 4, Article 198 of the law) and other relevant provisions of the law.

For documents already included in the Government's work program and the program for drafting legal documents of ministries and sectors: The agency in charge of drafting is responsible for updating the reviewed content and making necessary amendments and additions to ensure compliance with regulations, and is accountable to the Government and the Prime Minister for the results of implementation.

For documents not yet included in the Government's work program or the legislative drafting program of ministries and agencies, ministries and agencies shall proactively review and report to competent authorities to include them in the legislative drafting program; and shall be responsible to the Government and the Prime Minister for the results of implementation.

Regarding the completion timeline, the review, drafting, and submission of the document to the competent authority for promulgation must ensure that the document takes effect from July 1, 2024.

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