Circular 01/2022/TT-NHNN amending Circular 21/2013/TT-NHNN providing for the operational network of commercial banks

CIRCULAR

Amending and supplementing a number of articles of the Circular No. 21/2013/TT-NHNN dated September 9, 2013 of the Governor of the State Bank of Vietnam, providing for the operational network of commercial banks

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Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017 (hereinafter referred to as the Law on Credit Institutions);

Pursuant to Law on Enterprises dated June 17, 2020;

Pursuant to the Government's Decree No. 16/2017/ND-CP dated February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Chief of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby promulgates the Circular on amending and supplementing a number of articles of the Circular No. 21/2013/TT-NHNN dated September 9, 2013 of the Governor of the State Bank of Vietnam, providing for the operational network of commercial banks.

Article 1. To amend and supplement a number of articles of the Circular No. 21/2013/TT-NHNN

1. To amend and supplement Clause 12 Article 3 as follows:

“12. Ho Chi Minh City inner area covers the cities and districts of Ho Chi Minh City.”

2. To amend and supplement Article 4 as follows:

“Article 4. Competence to approve the network of commercial banks

1. The Governor of the State Bank of Vietnam shall consider approving or disapproving commercial banks’ establishment, termination of operation or dissolution of domestic branches, transaction offices, representative offices, non-business units; and establishment of overseas branches, representative offices and banks with 100% capital.

2. The Directors of provincial-level State Bank branches shall consider approving or disapproving:

a) Change of locations of head offices of domestic branches and transaction offices in the localities (including change of locations before the opening of operation);

b) Termination of operation of branches, transaction offices in the localities (in case of voluntary operation termination);

c) Change of branches managing transaction offices in the localities.

3. In some specific cases, the Governor of the State Bank shall consider and request the establishment of domestic branches, representative offices, non-business units and transaction offices; and overseas branches, representative offices and banks with 100% capital of commercial banks based on the orders and procedures prescribed in this Circular and in conformity with actual conditions:

a) To serve the objectives of economic, social, political, security, defense, diplomatic development, and monetary policy management in each period;

b) To support commercial banks in handling specially controlled people's credit funds;

c) To implement the approved plan to restructure specially controlled credit institutions.”

3. To amend and supplement Clause 3 Article 5 as follows:

“3. Dossiers of commercial banks shall be sent to the State Bank or its branches directly at the Single-window section or via postal service or online (for the dossiers specified in Clauses 1, 2, 3, 4, 5, Article 17, Article 20 of this Circular, and dossiers of voluntarily terminate the operation of transaction offices specified in Article 24 of this Circular).”

4. To amend and supplement Point g Clause 1 Article 6 as follows:

“g) Not being subject to the ban on network expansion as prescribed by the law on sanctioning administrative violations in money and banking;”

5. To amend and supplement Clause 1 Article 13 as follows:

“1. Except the cases prescribed in Clause 3, Article 4 of this Circular, the State Bank shall consider and approve commercial banks’ eligibility to establish domestic branches and transaction offices; approve commercial banks’ establishment of domestic representative offices and non-business units; overseas branches, representative offices and banks with 100% capital once in a fiscal year. Commercial banks shall make dossiers as prescribed in Article 12 of this Circular and send them to the State Bank (via the Banking Supervision Agency) once before September 30 annually.”

6. To amend and supplement Clause 3 Article 13 as follows:

“3. Within 14 working days after receiving a written request of the Banking Supervision Agency, the provincial-level People's Committee where the commercial bank plans to establish a domestic branch, the State Bank branch of the locality where the commercial bank plans to establish a domestic branch or transaction office shall give their written opinions on the requested contents.”

7. To amend and supplement Article 14 as follows:

“Article 14. Inaugurating operation of domestic branches and transaction offices

1. Requirements to inaugurate operation of domestic branches and transaction offices:

a) Having the lawful ownership or use of head offices of branches or transaction offices; the head offices must ensure storage of documents (except transaction offices), be convenient and safe for transactions and assets, have complete security and guard systems and systems of uninterrupted power supply and communication satisfying requirements of fire and explosion prevention and fighting;

b) Head offices of branches have cash vaults up to safety standards prescribed by the State Bank. In case a commercial bank has more than one branch in the same province or centrally run city, the commercial bank must have at least a branch with cash vaults in accordance with regulations of the State Bank and shall transport cash from branches without cash vaults to the branch with cash vaults after the transaction hours of each working day;

c) Branches and transaction offices have systems of information technology connected online to the head office and transaction offices connected online to their managing branches; ensure that the systems of information technology and the database operate continuously, safely, and confidentially for professional operations;

d) Branches and transaction offices have sufficient minimum executives including branch director, deputy director, director of transaction office or equivalent titles, and professional staff;

dd) The director of the branch or equivalent titles (in case of inaugurating operation of branches) satisfies the standards and conditions prescribed in Clause 5, Article 50 of the Law on Credit Institutions.

2. Commercial banks shall send a written report on satisfying the requirements for inaugurating domestic branches and transaction offices to the State Bank branch where the domestic branch or transaction office is located within 15 working days before the expected inaugurating date of domestic branches and transaction offices.

3. Commercial banks shall inaugurate the operation of domestic branches, transaction offices after satisfying the requirements in Clause 1 of this Article, completing the procedures for branch operation registration (for branches) or notifying the establishment of business locations (for transaction offices) in accordance with the provisions of law.

4. Within 07 working days before the expected date of inaugurating the domestic branch or transaction office specified in this Article, the commercial bank must disclose information on its e-portal and the State Bank’s e-portal, a daily newspaper in 03 consecutive issues or an electronic newspaper of Vietnam.”

8. To amend and supplement Article 16 as follows:

“Article 16. Change of names of domestic branches and transaction offices

The commercial bank shall decide on a change of the name of a domestic branch or transaction office; within 5 working days after the domestic branch or transaction office operates under the new name, the commercial bank shall send a written report on this change to the State Bank branch of the locality where the domestic branch or transaction office is located.”

9. To amend and supplement Point b Clause 4 Article 17 as follows:

“b) Within 10 working days after receiving a complete dossier as prescribed in this Circular, the State Bank branch of the locality where the head office of the branch or transaction office is located shall send a written approval or disapproval of the change of location of the branch or transaction office (including electronic documents). In case of disapproval, it shall issue a written reply clearly stating the reason to the commercial bank.”

10. To add Clause 6 Article 17 as follow:

“6. In case of changing the address of the domestic branch or transaction office without change of location, the commercial bank shall send a written request to the State Bank branch where the domestic branch or transaction office is located, confirming the change of address of the domestic branch or transaction office.

Within 15 working days after receiving the written request of the commercial bank, the branch of the State Bank where the domestic branch or transaction office is located shall send a written request to the commercial bank for confirming the change of address of the domestic branch or transaction office.”

11. To amend and supplement Point b Clause 3 Article 20 as follows:

“b) Within 14 working days after receiving a complete dossier as prescribed in this Circular, the State Bank branch of the locality where the head office of the branch is located shall issue a written approval or disapproval of the request of the commercial bank (including electronic documents). In case of disapproval, it shall issue a written reply clearly stating the reason to the commercial bank.”

12. To amend and supplement Article 21 as follows:

“Article 21. Disclosure of information on change contents

Within 7 working days after receiving written approval of the State Bank for effecting a change specified in Clauses 1, 2, 3, 4, 5 Article 17, Article 20 or from the date of receipt of the written confirmation of change of the address of the domestic branch or transaction office without changing the location of the State Bank as specified in Clause 6 Article 17 of this Circular or from the date of effecting the change specified in Articles 16, 18 and 19 of this Circular, the commercial bank shall disclose the change content on its website, at its head office and the head offices of its related domestic branches and transaction offices.”

13. To amend and supplement Clause 2 Article 24 as follows:

“2. Order of voluntary termination of operation of a domestic branch:

a) The commercial bank shall make 1 set of dossier as prescribed in Clause 1 of this Article and send it to the State Bank branch of the locality where the head office of the branch is located.

b) Within 45 days after receiving a complete dossier as prescribed in this Circular, the State Bank branch of the locality where the head office of the branch is located shall issue a written approval or disapproval of the request of the commercial bank (including electronic documents); in case of refusal, it shall issue a written reply clearly stating the reason to the commercial bank.”

14. To amend and supplement Point b Clause 3 Article 24 as follows:

“b) Within 14 working days after receiving a complete dossier as prescribed in this Circular, the State Bank branch of the locality where the head office of the transaction office is located shall issue a written approval or disapproval of the request of the commercial bank (including electronic documents). In case of refusal, it shall issue a written reply clearly stating the reason to the commercial bank.”

15. To amend and supplement Clause 4 Article 24 as follows:

“4. Within 45 days after having the written approval of the State Bank branch of the locality where the head office of the branch or transaction office is located as prescribed at Point b Clause 2 and Point b Clause 3 of this Article, the commercial bank shall carry out legal procedures as prescribed by law to terminate operation of its branch or transaction office; send a written report on the date of operation termination to the State Bank (via the Banking Supervision Agency) and the State Bank branch of the locality where the head office of the branch or transaction office.”

16. To amend and supplement Clause 2 Article 28 as follows:

“2. Biannually and annually, the commercial bank shall make a report in writing, send it directly or via postal service to the State Bank (via the Banking Supervision Agency) on the contents according to Appendix 02 issued together with this Circular, in which:

a) Time limit for sending reports:

- For biannual reports: no later than July 31 annually

- For annual reports: no later than January 31 of the year immediately following the reporting year.

b) Time for closing report data of each reporting period corresponding to the accounting period as prescribed in the Law on Accounting.”

Article 2. To replace, annul a number of phrases, points, clauses, articles, appendices of the Circular No. 21/2013/TT-NHNN

1. To replace the phrase “Properly and fully implementing regulations on classification of debts and setting up of risk provisions in accordance with regulations of the State Bank” in Point d, Clause 1 and Point d, Clause 2, Article 6 of the Circular No. 21/2013/TT-NHNN by the phrase “Properly and fully implementing regulations on classification of assets, level of deduction, method of setting up of risk provisions and the use of provisions to handle risks in operation in accordance with regulations of the State Bank at requested time”.

2. To replace the phrase “the ratio of non-performing loans to total outstanding loans at the time of December 31 of the year preceding the request year” in Point d, Clause 1, Article 6 of the Circular No. 21/2013/TT-NHNN by the phrase “the ratio of non-performing loans at the time of December 31 of the year preceding the request year and at requested time”.

3. To replace the phrase “the ratio of non-performing loans to total outstanding loans” in Point d, Clause 2, Article 6 of the Circular No. 21/2013/TT-NHNN by the phrase “the ratio of non-performing loans”.

4. To replace the phrase “The ratio of non-performing loans to total outstanding loans at the time of December 31 of the year preceding the request year” in Point b, Clause 2, Article 10 of the Circular No. 21/2013/TT-NHNN by the phrase “The ratio of non-performing loans at the time of December 31 of the year preceding the request year and at requested time”.

5. To replace the phrase “condition” in Point a, Clause 3, Article 17 of the Circular No. 21/2013/TT-NHNN by the phrase “request”.

6. To replace Appendices 01, 02 of the Circular No. 21/2013/TT-NHNN by the Appendices 01, 02 issued together with this Circular.

7. To annul Clause 14, Article 3, Point a, Clause 2, Article 13 of the Circular No. 21/2013/TT-NHNN.

Article 3. Organization of implementation

Chief of Office, Chief Inspector of the Banking Supervision Agency, Heads of units under the State Bank, Directors of commercial banks shall be responsible for the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect on March 15, 2022, except for the provisions in Clause 2 of this Article.

2. Regulations on commercial banks' online dossiers and regulations on electronic approval documents of the State Bank branches specified in this Circular take effect from December 01, 2022.

3. To annul Clause 3, Article 1 of the Circular No. 14/2019/TT-NHNN dated August 30, 2019, amending and supplementing a number of articles in the Circulars providing regulations on the periodical reporting regime of the State Bank.

For the Governor

The Deputy Governor

Doan Thai Son

* All Appendices are not translated herein.