Decree on credit information activities released
VGP – The Decree on credit information activities, coming into force since April 15, 2010 on, clearly defines the information sharing among credit organizations, particularly in facilitating borrowers’ access to credit sources.
Credit information
companies are allowed to contract with organizations and individuals for gathering
and providing credit information; to exchange credit information with their
counterparts; and to charge for their services and products.
Credit information activities can help to
minimize risky banking activities
To acquire licenses for engaging
in credit information activities, an organization must have proper IT
infrastructure and the minimum charter capital of VND 30 billion. It must also obtain
commitment from at least 20 commercial banks to exclusively feeding it with
their credit information.
The State Bank of Việt Nam (SBV)
will license credit information activities within 30 working days.
The license can be revoked
from a credit information company which illegally gathering, distorting, and
using State secret information or disturbing legal operation of the related
organizations and individuals.
The license is also revoked
when a company does not start its permitted credit information activities after
24 months since obtaining the license.
Facing a permanent
revocation, a credit information company must terminate its activities and dissolve
within six months.
Within 12 months since
April 15, 2010, all enterprising engaging credit information services must
finalize all necessary procedures for their license. Behind this deadline, any
unlicensed enterprises must terminate their credit information activities.
