Non-bank credit institutions include: General finance companies, specialized finance companies, factoring companies, consumer credit finance companies and leasing finance companies. The securities company is not a type of non-bank credit institution that be managed and licensed by the State Bank.

According to Mr. Nguyen Anh Hoang (in Hanoi), it is known that securities companies are currently allowed to carry out margin lending, advance payments, and in Article 4, Law on Credit Institutions:

“Article 4: Interpretation of terms

4. Non-bank credit institution means a type of credit institution which may conduct one or some banking operations under this Law, except taking deposits of individuals and providing services of payment via client accounts. Non-bank credit institutions include finance companies, financial leasing companies and other non-bank credit institutions.

… 12. Banking operations means the trading in and regular provision of one or some of the following services:

a/ Deposit taking;

 b/ Credit extension:

c/ Via-account payment..

.. 14. Credit extension means an agreement allowing an organization or individual to use a sum of money or a commitment allowing the use of a sum of money on the repayment principle by such professional operations as lending, discount, financial leasing, factoring, bank guarantee and other credit extension activities.”.

With the above references, Mr. Hoang would like to ask, is the securities company a non-bank credit institution?

Regarding this issue, the State Bank of Vietnam has the following opinions:

Pursuant to Clause 4, Article 4 of the Law on Credit Institutions 2010 (was amended and supplemented in 2017), Non-bank credit institutions include finance companies, financial leasing companies and other non-bank credit institutions.

Pursuant to Article 3, Decree No. 39/2014 /Non-bank credit institutions including general finance companies, specialized finance companies, factoring companies, consumer credit finance companies and finance leasing companies, which do not have regulations for other non-bank credit institutions.

Thus, according to the current law, non-bank credit institutions include: general finance companies, specialized finance companies, factoring finance companies, credit finance companies. consumer and financial leasing companies. Securities company is not a type of non-bank credit institution that be  managed and licensed by the State Bank. ND-CP dated May 7, 2014 on the activities of finance companies and finance leasing companies,