Circular 06/2022/TT-NHNN amending Circular No. 50/2018/TT-NHNN prescribing dossiers, order and procedures for approving changes of commercial banks and foreign bank branches

CIRCULAR

Amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 50/2018/TT-NHNN of December 31, 2018, specifying the dossiers, order and procedures for approving changes of commercial banks and foreign bank branches^[1]

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

Pursuant to the June 16, 2010 Law on Credit Institutions, and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of 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 promulgates the Circular amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 50/2018/TT-NHNN of December 31, 2018, specifying the dossiers, order and procedures for approving changes of commercial banks and foreign bank branches.

Article 1. To amend and supplement a number of articles of Circular No. 50/2018/TT-NHNN

1. To amend and supplement Clause 4, Article 3 as follows:

“4. A dossier shall be hand-delivered at the single-window section or sent by post to the State Bank of Vietnam or an authorized provincial-level branch of the State Bank of Vietnam (below collectively referred to as the State Bank).”

2. To amend and supplement Clause 1, Article 4 as follows:

“1. The State Bank Governor shall approve the changes specified in Clause 1, Article 1 of this Circular of large-sized commercial banks and foreign bank branches as decided by the State Bank Governor himself/herself; and contents on relocation of the head office of a foreign bank branch from one province or city to another.”

3. To amend and supplement Clause 4, Article 6 as follows:

“4. Within 15 working days after receiving the written request specified in Clause 3 of this Article, the State Bank shall issue a decision to modify information on the head office location of the commercial bank or office location of the foreign bank branch stated in the latter’s license. In case of refusal to modify or supplement the license, the State Bank shall reply in writing, clearly stating the reason.”

4. To amend and supplement Clause 5, Article 7 as follows:

“5. Within 15 working days after receiving the written request specified in Clause 4 of this Article, the State Bank shall issue a decision to modify information on the head office location of the commercial bank or office location of the foreign bank branch stated in the latter’s license. In case of refusal to modify or supplement the  license, the State Bank shall reply in writing, clearly stating the reason.”

5. To amend and supplement Point a (iii), Clause 1, Article 12 as follows:

“(iii) Names of shareholders and their holding rates before and expected holding rates after the increase of charter capital, in case joint-stock commercial banks’ increase of charter capital leads to the formation of a major shareholder or conversion of a major shareholder into an ordinary shareholder or in case of share purchase by a major shareholder.

6. To amend and supplement Clause 3, Article 17 as follows:

“3. The dossier, order and procedures for the share purchase that makes purchasers become major shareholders or purchase of shares of major shareholders in case a joint-stock commercial bank increases its charter capital must comply with Article 12 of this Circular.

In case a joint-stock commercial bank increases its charter capital, the share purchase by an organization or individual which makes the purchaser become a major shareholder or purchase of shares of a major shareholder not on the list of shareholders purchasing shares of joint-stock commercial banks specified at Point d, Clause 1, Article 12 of this Circular, once approved by the State Bank of Vietnam, must comply with Clauses 1 and 2 of this Article and Clause 2, Article 15 of this Circular. The State Bank’s written approval of share purchase constitutes an integral part of the written approval of the charter capital increase.”

7. To amend and supplement Clause 1, Article 18 as follows:

1. To act as the focal point for receiving, appraising and collecting opinions (when necessary) of related units of the State Bank, then summarize and submit them to the State Bank Governor for consideration and approval, with regard to the changes specified in Articles 5 thru 17 according to its competence provided in Clause 1, Article 4 of this Circular; within 3 working days from the date the State Bank receives documents from commercial banks or foreign bank branches as specified in Clause 3, Article 6 and Clause 4, Article 7 of this Circular, the Banking Supervision Agency shall request State Bank’s branches of provinces or cities in which head offices of commercial banks or foreign bank branches are expected to be located to inspect the satisfaction of all conditions for location of head offices.”

8. To add Clauses 3 and 4 to Article 19 as follows:

“3. Within 7 working days after receiving a written request of the Banking Supervision Agency, the State Bank’s branches of provinces or cities in which head offices of commercial banks or foreign bank branches are expected to be located shall inspect the satisfaction of all conditions for location of head offices; and send their written opinions to the Banking Supervision Agency.

4. The inspection of satisfaction of all conditions on location of head offices shall be carried out before the issuance of a decision to modify information on the office location of the foreign bank branch stated in its license under competence provided in Clause 2, Article 4 of this Circular.”

Article 2. Transitional provisions

Written requests for modification of information on head office locations of commercial banks or office locations of foreign bank branches stated in their licenses that are submitted before the effective date of this Circular may continue to be considered and processed in accordance with the law effecctive at the time of dossier submission.

Article 3. Organization of implementation

The Chief of the Office, Chief of the Banking Supervision Agency, and heads of units of the State Bank, commercial banks and foreign bank branches shall implement this Circular.

Article 4. Implementation provision

This Circular takes effect on August 15, 2022.-

For the State Bank Governor
Deputy Governor
DOAN THAI SON