Borrowing money to buy gold bars at banks. Is it banned?

Regulations and facts

Although the Circular No. 39/2016 / TT-NHNN dated December 30, 2016 of the SBV stipulates that lending activities of credit institutions and foreign bank branches have officially come into effect from March 15 / 2017 And based on Clause 4, Article 8 of Circular 39, credit institutions are not allowed to lend for capital needs to buy gold bars.

Pursuant to Clause 2, Article 15 of Decree No. 96/2014 / ND-CP, prescribing the sanctioning of administrative violations in the monetary and banking domains, prescribing a fine of between VND 15 million and 20 million for acts of failing to inspect and supervise the use of loans and loan repayments of customers according to the law.

The law is so, however, in fact, there is still a situation where some innocent bankers advise customers to borrow money to buy gold bars at their banks. As a customer walking around some banks asking about this issue, it is not difficult to encounter loans for the purpose of buying gold bars that occur every day.

Case 1: If you have a bank book of that bank, you can easily borrow and pledge to buy gold at that bank. The mortgage interest rate margin in banks ranges from 1 to 3% in addition to the interest rate on savings books. Specifically, if the interest rate on your savings book is 7% per year, then you will usually get a mortgage loan with an interest rate of 8 to 10% per year, depending on the bank and loan term. After disbursing, customers can take care of the money to buy gold right at the bank, even if they don't need to receive money, but they will deduct all the borrowed money to pay for the gold purchase. Thus, in this case, the bank staff fully know the purpose of borrowing customers is to buy gold bars. read more https://tygia.vn/ty-gia

In this case, many bank employees also do not know that they are violating the law. Because according to them, customers with savings books have the right to borrow. And after borrowing, what is their right to do, do not buy gold in credit-granting banks, can customers still go through other banks to buy, how can they control it? As a credit person, if you think and explain such a problem, you are looking down on the rules for the purpose of using capital and monitoring the use of customers' loans.

Case 2: customers only have a part of money, not enough to buy gold. And the bank staff advises clients on borrowing and mortgage with "the amount of gold formed in the future" (gold is formed by borrowing money to buy gold and using that gold itself to secure that loan) . In this case, if selling gold first or lending first is wrong. Accounting for selling gold first, at that time, customers did not have enough money. Also accounting for disbursement before, at the time of disbursement, customers do not have collateral for the loan. And it is important that the purpose of this case is still to borrow money to buy gold - which is also prohibited.

In fact there are still many other cases of loans to buy gold, but one way or another, lending to buy gold bars still takes place in banks. For the sake of simplicity, lending to buy gold will solve two goals at the same time, increasing debt balance and gold sales.

Loans to buy gold pieces: observations will be easy to detect

Although for loan applications for the purpose of buying gold bars often bankers do "beautiful" documents in accordance with regulations. In the dossier set, they have all the invoices and documents showing the purpose of using the capital "reasonably" by the customers. But "reasonable" doesn't mean legal. And the bank staff did not know that the auditing and banking companies had a lot of experience and professional sense to detect fraudulent and fake acts of credit officers. Specifically:

Firstly, based on the set of documents using customers' capital for loans. No matter how perfect it is to make the documents for the use of documents, everything is false and repetitive, many times there will be loopholes such as scraping, photo proof, the same day wrong month with time logic, ...

Secondly, for customers who borrow money to buy gold, the frequency of transactions in the week will be high, especially at times when gold prices fluctuate or increase. Therefore, the observant can base on the transaction history of disbursements at the sensitive time of the gold price to delineate the cases where customers use capital for wrong purposes (borrowing to buy gold bars).

Third, based on the client's transaction history during the day to detect. Normally, a customer who has just disbursed (often pledged or short-term loans) and at the same time paid for gold is obviously borrowing money for the purpose of buying gold bars. There is a more subtle case, thanks to relatives who are on the purchase of gold. But experienced bank officials also easily recognize this move, unless the bank staff also advises such customers.

Fourth, no matter how sophisticated the methods are, remember that all banks have cameras. In cases where customers borrow money, but do not actually receive cash and use the same amount to offset the purchase of gold, the image remains. At that time, even if your end-of-the-day documents are "pretty", the camera image will be an important evidence to confirm the wrong purpose of lending (to buy gold bars).

Closing the story of lending gold to buy and sell gold, many people probably remember the exchange of 100 USD fined 90 million VND by Mr. Nguyen Ca Rê in Can Tho. Although Mr. Nguyen Ca Rê's decision to sanction administrative violations was then not enforced. However, for bankers and banks, be very careful and alert with lending for gold bars

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