New regulation on credit information business
On February 12th 2010, the Government issued the Decree No.10/2010/NĐ-CP on credit information activity. The Decree governs credit information companies (CICs), credit institutions, borrowers, and all related organizations and individuals.
To conduct credit information business CICs must satisfy various conditions including, inter alia, having sufficient information infrastructure; having minimum charter capital of 30 billion VND; committing not to carry out any other business lines except credit information business; having commitments to provide credit information of at least 20 commercial banks which make no such similar commitment to other credit information companies, etc.
CICs shall be only allowed to use credit information of borrowers for the most recent five years to create their credit information products and must store such information for at least five years from the time it was licensed to provide this service. From the effective date of this Decree, credit institutions shall only be allowed to provide borrowers' credit information to credit information enterprises if so agreed by such borrowers. This does not apply to borrowers' credit information existed before the effective date of this Decree, which have not been agreed by the borrowers.
Within 12 months from the effective date this Decree, all enterprises engaging in credit information business must satisfy the said conditions and apply for the certificate from the State Bank of Vietnam. Otherwise they shall not continue their credit information business.
This Decree shall take effect from April 15th, 2010.
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