Operation of Financial company

Financial company is entitled to carry out the operations of banking as meeting the following conditions:

Operation of banking of the financial company must be specified in Certificate of Establishment granted by State Bank (hereinafter called Certificate). Having team of staff equipped with competence, professional knowledge and with facilities, technology, equipments and other internal regulations under the law for the sake of carrying out banking services that defined in the Certificate.

For operation of banking relating to foreign exchange, financial company must comply with the regulations on foreign exchange management. Meeting requirements for professional qualification in terms of banking activities regulated by State Bank.
Financial company is entitled to issue deposit certificates, bills or treasury bills to mobilize money from other organizations as having enough conditions as the law sates. Financial company is entitled to borrow loans from domestic and foreign credit institutions, financial organization; carry out lending (including hire-purchase lending, lending for consumption purpose); bank guarantee, factoring, credit card issue, financial leasing as meeting conditions defined under the law as well as other legal operation of financial company.

Financial leasing company

Financial leasing company is entitled to carry out activities regulated in/from Article 112 to Article 116 in Law on Credit Institutions and other provisions of this Decree

Buying and re-leasing activities

Selling account receivable defined in the financial leasing contract to organizations, individuals under the regulations of State Bank

Transitional provisions

Within 12 months from the valid date of this Decree, financial company, financial leasing company that established and have been in operation under Certificate of permit issued by State Bank prior to the valid date of this Decree must ensure to meet conditions for operation stipulated in this Decree. Within 18 months form the valid date of this Decree, general financial company, consumption credit financial company, and financial leasing company that established and have been in operation under Certificate of permit issued by State Bank prior to this valid date of this Decree must stop activities prohibited under this Decree.