THE GOVERNOR OF THE STATE BANK

DECIDES:

Article 1.- Credit institutions that provide loans or discount negotiable instruments for securities investment and trading shall comply with legal provisions on bank credit, the provisions of this Decision and other relevant laws.

Article 2.- Credit institutions may provide loans or discount negotiable instruments for securities investment and trading when fully meet the following conditions:

1. They have promulgated their own regulations on these lending and discount operations, which clearly specify:

a/ Lending or discount limit for a client;

b/ Lending or discount limit for a group of related clients;

c/ Ratio of outstanding loans or discounts of negotiable instruments to the total outstanding credit;

d/ Maximum lending duration and maximum duration of termed discounts;

e/ Loan security assets;

f/ Measures to control and prevent credit risks;

2. They have sent the regulations mentioned in Clause 1 of this Article to the Inspectorate of the State Bank right after these regulations are promulgated for use as a basis for inspection and supervision of lending and negotiable instrument discount operations for securities investment and trading.

3. They maintain safety ratios in their operations under the State Bank of Vietnam's regulations.

4. They keep the non-performing loan ratio below 5% of their total outstanding credit.

5. They accurately account and make statistics on loans and discounts of negotiable instruments for securities investment and trading; send reports, which are made according to a set form (not printed herein), to the State Bank within a prescribed time limit.

Article 3.- Provision of loans and discount of negotiable instruments for securities investment and trading include:

1. Provision of loans and discount of negotiable instruments for securities companies;

2. Provision of loans in the form of securities collaterals and/or security with other assets for clients that use loans to purchase securities of various kinds;

3. Provision of loans in the form of advances for clients that have sold securities and use loans to purchase securities;

4. Provision of loans for clients to pay the deficits of payable securities purchase amounts when securities buying orders are matched;

5. Provision of loans for employees of state companies transformed into joint-stock companies to buy their initial public offering shares;

6. Provision of loans for contribution of capital or purchase of shares of joint-stock companies or fund certificates of investment funds;

7. Discount of negotiable instruments for clients that use discounted money amounts to purchase securities;

8. Loans and discounts of negotiable instruments in other forms which are used by clients to purchase securities.

Securities means securities of those types specified in Clause 1, Article 6 of the Securities Law, including also stocks and bonds of public companies specified in Clause 1, Article 25 of the Securities Law.

Article 4.- Risk coefficient and limit of loans or discounts of negotiable instruments for securities investment and trading are as follows:

1. For loans or discounts of negotiable instruments for securities investment and trading which are classified as receivable assets, the applicable risk coefficient is 250%.

2. The total outstanding loans or discounts of negotiable instruments for securities investment and trading must not exceed 20% (twenty percent) of a credit institution's charter capital.

Article 5.- Implementation provisions

1. This Decision takes effect 15 days after its publication in "CONG BAO."

2. The following regulations cease to be effective: Point 1.3, Clause 1 of Directive No. 03/2007/CT-NHNN of May 28, 2008, of the Governor of the State Bank of Vietnam, on control of the volume and quality of credit and loans for securities investment and trading for the purpose of curbing inflation and boosting economic growth, and its guiding documents of the State Bank of Vietnam; Points a and b, Clause 5, Article 6 of the Regulation on safety ratios in operations of credit institutions, promulgated together with Decision No. 457/2005/QD-NHNN of April 19, 2005, of the Governor of the State Bank of Vietnam (supplemented under Clause 7, Article 1 of Decision No. 03/2007/QD-NHNN of January 19, 2007, of the Governor of the State Bank of Vietnam); and regulations of the State Bank of Vietnam which are contrary to this Decision.

3. From the effective date of this Decision, credit institutions that meet the conditions specified in Article 2 and Clause 2, Article 4 of this Decision may provide credit under this Decision. Those unable to meet the conditions specified in Article 2 and Clause 2, Article 4 of this Decision may neither provide loans nor discount negotiable instruments for securities investment and trading. They may continue providing loans and making discounts within the permitted limits only after they meet the conditions specified in Article 2 and Clause 2, Article 4 of this Decision.

Article 6.- The director of the Office, the director of the Monetary Policy Department and heads of units of the State Bank of Vietnam, directors of provincial/municipal branches of the State Bank of Vietnam; boards of directors and directors general (directors) of credit institutions shall implement this Decision.