On August 21, the Board of Administrators of Vietnam Technological and Industrial Joint Inventory Financial institution (Techcombank) issued a decision approving Techcombank’s transactions with associated individuals of Techcombank.
Accordingly, Techcombank granted Visa Signature bank card to Mr. Nguyen Dang Quang, Vice Chairman of the Board of Administrators. Card restrict is 500 million VND. Bank card time period is three years.
Many individuals have requested the query: Why does issuing a bank card require Board approval?
The rationale lies within the provisions of the Legislation on Credit score Establishments.
Particularly, to make sure security within the operation of credit score establishments, Article 126 of the Legislation on Credit score Establishments stipulates circumstances during which credit score just isn’t granted. By which, the member of the Board of Administrators is without doubt one of the circumstances the place credit score just isn’t granted. Billionaire Nguyen Dang Quang is presently Vice Chairman of Techcombank’s Board of Administrators, so it’s inside the scope of this legislation.
As well as, Article 126 additionally stipulates that oldsters, spouses and kids of members of the Board of Administrators are additionally not allowed to grant credit score. Subsequently, Techcombank’s Board of Administrators should additionally approve the issuance of a bank card with a restrict of 120 million VND to the kids of billionaire Nguyen Dang Quang, together with Nguyen Dang Linh, Nguyen Thuy Linh and Nguyen Yen Linh.
Additionally on August 21, Techcombank additionally permitted bank card limits for quite a lot of senior leaders and different family akin to:
– Mr. Nguyen Canh Son, Vice Chairman of the Board of Administrators was granted a card with a restrict of VND 500 million;
– Mr. Nguyen Canh Son Tung, Mr. Nguyen Canh Son’s son was granted a card with a restrict of VND 500 million;
– Mr. Phung Quang Hung, Standing Deputy Normal Director was granted a card with a restrict of 100 million VND.
Article 126. Instances during which credit score just isn’t granted
1. Credit score establishments, international financial institution branches might not grant credit score to the next organizations and people:
a) Member of the Board of Administrators, member of the Members’ Council, member of the Supervisory Board, Normal Director (Director), Deputy Normal Director (Deputy Director) and equal titles of the credit score establishment , international financial institution department, authorized entity being a shareholder whose consultant of contributed capital is a member of the Board of Administrators, member of the Supervisory Board of a credit score establishment being a joint-stock firm, a authorized entity being a contributing member. capital, the proprietor of the credit score establishment is a restricted legal responsibility firm;
b) Mother and father, spouses, youngsters of members of the Board of Administrators, members of the Members’ Council, members of the Supervisory Board, Normal Director (Director), Deputy Normal Director (Deputy Director) and equal titles.
So why is the billionaire solely granted a restrict of VND 500 million by the financial institution like different regular prospects?
The reason being to adjust to the provisions of Round No. 26/2017/TT-NHNN amending and supplementing quite a lot of articles of Round No. 19/2016-TT-NHNN regulating banking card operations.
Accordingly, in case of issuing a bank card with out collateral, the utmost credit score restrict granted to the cardholder is VND 500 million.
Thus, billionaire Nguyen Dang Quang was granted a bank card by Techcombank with the very best doable restrict.
By Enterprise and Advertising