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.

February 23, 2010 11:16 AM GMT+7

Credit information activities can help to minimize risky banking activities

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.

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.

By Hạnh Phương