DECISION

ON THE VIETNAM DONG POSITION OF FOREIGN BANK BRANCHES OPERATING IN VIETNAM

THE GOVERNOR OF THE STATE BANK OF VIETNAM

- Pursuant to the Ordinance on the State Bank promulgated by the Decree No. 37-LCT/HDNN8 dated 24 May 1990 of the Chairman of the State's Council of the Socialist Republic of Vietnam;
- Pursuant to Decree 15/CP dated 2 March 1993 of the Government on the Assignment, Authority and Responsibility for State Management of Ministries, Ministry-level Agencies;
- Pursuant to Decree 189-HDBT dated 15 June 1991 of the Chairman of the Council of Ministers issuing the Regulation on Joint-venture Banks and Foreign Bank Branches operating in Vietnam; and
- Upon the request of the Director of the Department of Economic Research and other relevant Departments.

DECIDES

Article 1.

The Vietnam Dong position of a foreign bank branch shall be the difference between the total Assets and the total Liabilities denominated in Vietnam Dong in the balance sheet of the branch and the amount of Vietnam Dong used for the forward transactions for foreign currency.

Article 2.

Foreign bank branches operating in Vietnam shall be permitted to maintain the Vietnam Dong position within a range of 10% (ten per cent) of the capital granted by a foreign bank to its branch plus its reserves.

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Every day, before 10 a.m., foreign bank branches shall report by fax or telex on the Vietnam Dong position of the previous business day to the Banking Operations Department of the State Bank. If such a reporting day is a holiday, the report shall be submitted on the following business day.

The Banking Operations Department of the State Bank shall, on a monthly basis, be responsible for the report on the compliance with the Vietnam Dong position to the State Bank Governor and all other relevant Departments. Should any violation of the Article 2 be discovered, the Banking Operations Department shall report promptly on the same day to the Inspectorate of the State Bank and relevant Departments and make proposals for solution to the Governor of the State Bank.

Article 4.

The Inspectorate of the State Bank shall be responsible for inspecting and supervising the implementation of this Decision, and in case of violation, to propose one of the following measures to the Government of the State Bank:

- Warnings: if the violation is committed for the first time.

- Suspension of the Vietnam Dong activities for a definite period: if the violation is committed for the second time; and

- Permanent termination of the Vietnam Dong activities: if the violation is repeated subsequently.

In addition, such banks may be dealt with in accordance with other provisions of the laws depending on the seriousness of the breaches.

Article 5.

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Article 6.

This Decision shall effective 15 days after the date of signing. Any amendment or supplement to this Decision shall be decided by the Governor of the State Bank.

FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR





Le Duc Thuy