Law on Credit Institutions 2024: Contributing to building a transparent financial system

Law on Credit Institutions No. 32/2024/QH15 (abbreviated as Law on Credit Institutions 2024) takes effect from July 1 with a series of regulations and guidelines that are optimizing operations and management in the financial sector. In particular, Clause 3, Article 200 and Clause 15, Article 210 of the Law will take effect from August 1. The Law coming into practice contributes to promoting the operations of credit institutions, meeting the requirements of development.

BIDV Ha Long staff handle customer files.

The Law on Credit Institutions 2024, consisting of 15 Chapters and 210 Articles, was officially passed by the National Assembly on January 18, 2024. One of the notable changes in the Law is that it does not require customers to have information on feasible capital usage plans for small loans worth less than VND 100 million. In order to implement the Law, the State Bank has issued Circular No. 12/2024/TT-NHNN amending Circular No. 39/2016/TT-NHNN regulating lending activities of credit institutions and foreign bank branches to customers. On that basis, the State Bank Quang Ninh branch has directed credit institutions in the province to implement the provisions of Circular No. 12/2024/TT-NHNN.

Accordingly, credit institutions have been stepping up the development, revision and promulgation of new regulations on loan application lists in the direction of simplifying paperwork procedures for loans under 100 million VND. At the same time, building appropriate products towards disbursing loans under 100 million VND on bank applications with quick time.

Mr. Luu Xuan Hoan, Deputy Director of BIDV Ha Long, said: Since the beginning of July, customers have not had to provide information on feasible capital usage plans for loans under 100 million VND at BIDV Ha Long. Customers only need a loan application and proof of repayment source, the bank can provide credit capital. Up to now, BIDV Ha Long has disbursed 18 consumer loans for people under 100 million VND. Simplifying loan procedures under 100 million VND will contribute to meeting people's needs, limiting black credit, and quick approval time.

Mr. Hoang Van Chung, Deputy Director of BAOVIET Bank Quang Ninh, said: For small loans, we are implementing loans for officers, employees, and consultants of member companies of Bao Viet Group in the area. In the coming time, applying new regulations, we will build valuable loan products for many customer groups. The reduced procedures also mean that loan approval time is shortened, paperwork is reduced, and digital technology is easily applied to lending activities, in line with the digital economy and digital banking.

Customers come to make transactions at BAOVIET Bank Quang Ninh.

The Law on Credit Institutions 2024 also has many other new points such as: Prohibiting the sale of optional insurance accompanying loans, adding regulations on reviewing consumer loans, new regulations on early intervention in weak credit institutions, gradually reducing credit granting in each stage, being allowed to transfer collateral assets such as real estate projects to recover debt...

In addition to the provisions applied from July 1, Clause 3, Article 200 on transfer of secured assets and Clause 15, Article 210 on transitional provisions of the Law on Credit Institutions 2024 will be implemented from August 1 when the Law on Real Estate Business No. 29/2023/QH15 takes effect.

The Law on Credit Institutions 2024 with its comprehensive, synchronous and profound content is not only an important milestone, but also a step towards sustainable development in the financial sector. This law will play an important role in shaping the banking and credit industry; creating a tight, flexible and transparent system, managing risks, and protecting consumer rights. More than just a set of rules, the Law on Credit Institutions 2024 is also a declaration of the National Assembly's commitment to a strong, ethical and globally oriented financial system.

Source