On September 30th, 2022, The State Bank issued Circular No. 11/2022/TT-NHNN prescribing bank guarantees, with some notable contents as follows:
- Supplement regulations on Electronic guarantee: Credit institutions, FBBs and customers shall be allowed to conduct bank guarantee transactions using electronic means. Each credit institutions or FBB shall decide methods, forms and technologies employed to provide e-guarantee in respect of the entire or each stage of the guarantee process, incur all risks and meet the following requirements: solutions and technologies for ensuring the accuracy, confidentiality and safety during the collection, use and verification of information and data; measures for examining, checking, updating and verifying information and data; measures for preventing acts of forging, intervening and falsifying information and data; risk assessment, management and control.
- Supplement the case that credit institutions and FBBs shall not issue guarantee to fulfill payment obligations for bonds issued for the purposes of restructuring of the issuer’s debts, contribution of capital to or purchase of shares of another enterprise, or increase of working capital.
This Circular replaces Circular No. 07/2015/TT-NHNN (amended by Circular No. 13/2017/TT-NHNN) and takes effect from April 1st, 2013
