THE STATE BANK OF VIETNAM
Circular No. 17/2017/TT-NHNN dated November 20, 2017 of the Vietnam State Bank amending, supplementing a number of articles of the Circular 40/2011/TT-NHNN regulating on licensing and organizations, operations of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations with banking operations in Vietnam
Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credit Institutions dated June 16, 2010;
Pursuant to the Decree No. 16/2017/ND-CP dated June 16, 2010 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the proposal of the Director of the Banking and Inspection Department,
The State Bank Governor promulgates the Circular amending, supplementing a number of Articles of the Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of State Bank regulating on licensing and organizations, operations of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations with banking operations in Vietnam (hereinafter referred to as the Circular No. 40/2011/TT-NHNH).
Article 1.To amend, supplement a number of articles of the Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of State Bank regulating on licensing and organizations, operations of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations with banking operations in Vietnam(hereinafter referred to as the Circular No. 40/2011/TT-NHNH).
1. To amend, supplement Clause 4, Article 13 as follows:
“4. If copies of papers are copies that are not authenticated and taken from the original papers, the original papers must be presented to contrast, the person who contrasts must sign to certify on copies and shall be responsible for the accuracy of copies.”
2. To amend, supplement Point b Clause 4 Article 14 as follows:
“b) Copies of documents evidencing qualifications;”
3. To supplement Section 4 into Chapter II as follows:
“Section 4:
REGULATION ON REQUESTING FOR LICENSING, SUPPLEMENTING THE LICENCE
Article 18a. Principles of requesting for licensing, supplementing the license
Requesting for licensing, supplementing the license must be implemented according to the following principles:
1. The State Bank shall not grant permits for operations that commercial banks, foreign bank’s branches are not permitted as stipulated by current law; adjust contents permitted in accordance with the law on credit institutions and Appendix 01a, 01b promulgated together with this Circular. The new license shall replace all licenses, approval (that is a part that cannot be separated with the license) granted by the State Bank.
2. For business operation of providing foreign exchange services, doing business on gold, providing derivative products on foreign currency, other financial assets in the domestic market and in the international market, granting permits shall be implemented according to specific regulations as stipulated by the State Bank and other regulations.
3. For business operations as stipulated under Clause 24 Article 4 of the license form for granting permits for establishment and operation of commercial banks (Appendix 01a) and Clause 23 Article 4 of the license form of granting permits for establishment and operation of foreign bank’s branches (Appendix 01b), it shall be done after the approval of the State Bank. Procedures and application dossier of supplementing contents of the license shall be implemented according to specific regulations of the State Bank and other regulations;
4. If the commercial banks, foreign bank’s branches request for supplementing contents of the license and re-granting the license, the State Bank shall consider on re-granting the license when commercial banks, foreign bank’s branches fully meet regulations on documents as stipulated under Article 18c of this Circular.
Article 18b. Procedures of re-granting the license, granting the license for supplementing contents of the license
1. Commercial banks, foreign bank’s branches shall prepare documents as stipulated under Article 18c of this Circular and send by post or submit directly to the State Bank (through Banking Inspection and Supervision Department).
2. Within 40 days since the receipt of the valid dossier, the State Bank shall re-grant the license or supplement the content of the license or re-new the license. If refusal, the State Bank must state the reasons in writing;
3. After being approved on re-granting the license, supplementing the content of the license, commercial banks and foreign bank’s branches shall:
a) Process procedures with business registration agencies on changes in the license as stipulated;
b) Publish changes of the license on media and newspaper in 3 consecutive issues of the newspaper or electronic newspaper within 7 working days since the State Bank issued the new license.
c) Commercial banks shall amend, supplement the regulation in accordance with the license and register with the State Bank as stipulated under Clause 3 Article 27 of this Circular.
Article 18c. Application dossier for re-granting the license and supplementing the content of the license
1. For re-granting the license:
a) Application must be signed by the legal representative of commercial banks, foreign bank’s branches, of which it must be clearly mentioned contents of operation; for 100% foreign owned banks, it must be clearly mentioned in the application that this is operation that owner, 50% foreign owned bank of 100% foreign owned banks are permitted. For foreign bank’s branches, the application must contain the commitment that this is content that head banks are permitted at the host country.
b) List of operations according to the current license, other approval documents of the State Bank together with the license and these approval documents;
2. For supplement of the license
a) Application must be signed by the legal representative of commercial banks, foreign bank’s branches, of which it must be clearly mentioned contents that need to be supplemented; for 100% foreign owned banks, it must be clearly mentioned in the application that this is operation that owner, 50% foreign owned bank of 100% foreign owned banks are permitted. For foreign bank’s branches, the application must contain the commitment that this is content that head banks are permitted at the host country. For application of supplements of investment in futures contract of Government bonds, the application must contain reports on the fact that sale and purchase of government bonds are permitted by the State Bank.
b) Resolution of the Controller’s Board (Board of Members) of commercial banks approving the supplement of the license; documents of head bank signed by the legal representative for supplement of the license (for foreign bank’s branches);
c) For supplement of derivative interest rate, securities depository, besides documents as stipulated under Point a and b of this Article, commercial banks, foreign bank’s branches shall have to prepare internal processes, measures to prevent risks for each operation in the application of supplement of the license;
3. For case of supplement of the license and re-granting of the license
a) Application of supplement of the license and re-granting of the license signed by legal representative of commercial banks, foreign ban’s branches, of which it contains contents as stipulated under Point a Clause 1 and Point a Clause 2 of this Article;
b) Dossier as stipulated under Point b Clause 1 and Point b, c Clause 2 of this Article;
4. To amend, supplement Article 36 as follows:
a) To amend, supplement Point a Clause 1 as follows:
“a) Components of Appraisal Council shall be decided by the Governor of the State Bank, including the Governor or a Deputy Governor (authorized by the Governor) as President, other members are heads of the units specified in clauses 2,3,4,5,6,7,8, 10 of this Article;”
b) To supplement Point g and h into Clause 2 as follows:
“g. To act as contact point for receiving and evaluating dossiers for granting permits, supplementing contents into permits of commercial banks and foreign bank branches;
h) To get written opinions of related units in the State Bank on application of granting supplements into the permits for contents such as derivative interest, provision of derivative goods and securities depository.”
c) To supplement Clause 10 and 11 into Article 36 as follows:
“10. Foreign Exchange Management Department:
a) Within 30 days since the receipt of request from Banking Inspection and Supervision Department, Foreign Exchange Management Department shall appraise the dossier and send it to Banking Inspection and Supervision Department;
b) Having opinions on issues related to foreign exchange activities of commercial banks, foreign bank’s branches.
11. Within 30 days from the date the Banking Inspection and Supervision Department sends a written request for supplement of the license for operations on derivative interest rate, provision of derivative products and securities depository, agencies under the State Bank’s management shall give opinions in writing and mention the approval or disapproval for application of commercial banks, foreign bank’s branches.”
Article 2.To replace the Appendix 01 promulgated together with the Circular No. 40/2011/TT-NHNN by the Appendix promulgated together with this Circular including: Appendix 01a (Form of permit for the establishment and operation of commercial bank), Appendix 01b (Form of permit for the establishment of foreign bank branches), Appendix 01c (Form of permit for representative offices).
Article 3.Responsibilities and implementation organization
The Director of Administrative Department, Director of Banking Inspection and Supervision Department, Head of units of the State Bank, Managers of State Bank Branches in provinces, cities under the Central Government’s management, Chairman of the Board of Directors, Chief of Controllers Committee, General Manager (Manager) of foreign bank branches, Chief of Representative Office of foreign credit institutions doing business in banking sector shall, within their scope of function, assignment and authority, be responsible for the implementation in compliance with provisions in this Circular.
Article 4. Effect
1. This Circular takes effect on January 05, 2018.
2. To annul the Circular No. 08/2015/TT-NHNN dated June 30, 2015 of the State Bank of Vietnam amending, supplementing a number of Articles of the Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the State Governor of Vietnam.
For the Governor
Deputy Governor
Nguyen Dong Tien
*All Appendices are not translated herein.
Vietnamese
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