Circular No. 17/2018/TT-NHNN dated August 14, 2018 of the State Bank of Vietnam on amending and supplementing a number of articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches

CIRCULAR

Amending and supplementing a number of articles of the Circulars prescribing the licensing, operation network and foreign exchange operation of credit institutions 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 Director of the Department of Legal Affairs;

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of the Circulars prescribing the licensing, operation network and foreign exchange operation of credit institutions and foreign bank branches.

Article 1. To amend, supplement or annul a number of articles of Circular No. 40/2011/TT-NHNN of December 15, 2011, of the Governor of the State Bank of Vietnam, prescribing the licensing and organization and operation of commercial banks, foreign bank branches and representative offices of foreign credit institutions and other foreign organizations engaged in banking operations in Vietnam

1. To amend and supplement Point dd, Clause 2, Article 9 as follows:

“dd/ When founding a joint-stock commercial bank, its founding shareholders must jointly hold at least 50% of its charter capital, at least 50% of which must be jointly held by those being legal persons;”.

2. To amend and supplement Point e, Clause 2, Article 9 as follows:

“e/ In addition to the conditions prescribed at Points c and dd of this Clause, a founding shareholder being an individual must satisfy the following conditions:

(i) Holding the Vietnamese citizenship;

(ii) Being not subject to ban under the Law on Enterprises;

(iii) Refraining from using capital mobilized or borrowed from organizations and individuals to make capital contribution;

(iv) Having acted as the manager of a profit-making business for at least 3 years preceding to the year of submission of the dossier of application for a license, or possessing a university or postgraduate degree in economics or law;”.

3. To amend and supplement Point g (ii), Clause 2, Article 9 as follows:

“(ii) Refraining from using capital mobilized or borrowed from other organizations and individuals to make capital contribution;”.

4. To annul Points a, b and d, Clause 2, Article 9; the letters “a, b” at Point g, Clause 2, Article 9; and Clause 3, Article 10.

Article 2. To annul a number of articles of Circular No. 21/2013/TT-NHNN of September 9, 2013, of the Governor of the State Bank of Vietnam, prescribing the operation network of commercial banks

To annul Point i, Clause 1, Article 6.

Article 3. To annul a number of articles of Circular No. 21/2014/TT-NHNN of August 14, 2014, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange operation, conditions, order and procedures for approval of foreign exchange operation of credit institutions and foreign bank branches

To annul Point a, Clause 2, Article 10 (as amended and supplemented by Clause 10, Article 1 of Circular No. 28/2016/TT-NHNN of October 5, 2016, amending and supplementing a number of articles of Circular No. 21/2014/TT-NHNN of August 14, 2014, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange operation, conditions, order and procedures for approval of foreign exchange operation of credit institutions and foreign bank branches).

Article 4. To amend, supplement or annul a number of articles of Circular No. 30/2015/TT-NHNN of December 25, 2015, of the Governor of the State Bank of Vietnam, prescribing the licensing and organization and operation of non-bank credit institutions

1. To amend and supplement Clause 5, Article 11 (as amended and supplemented by Clause 2, Article 1 of Circular No. 15/2016/TT-NHNN of June 30, 2016, amending and supplementing a number of articles of Circular No. 30/2015/TT-NHNN of December 25, 2015, of the Governor of the State Bank of Vietnam, prescribing the licensing and organization and operation of non-bank credit institutions) as follows:

“5. Refraining from using capital mobilized or borrowed from other organizations and individuals to make capital contribution.”.

2. To amend and supplement Point a, Clause 6, Article 11 (as amended and supplemented by Clause 2, Article 1 of Circular No. 15/2016/TT-NHNN of June 30, 2016, amending and supplementing a number of articles of Circular No. 30/2015/TT-NHNN of December 25, 2015, of the Governor of the State Bank of Vietnam, prescribing the licensing and organization and operation of non-bank credit institutions) as follows:

“a/ Holding the Vietnamese citizenship;”.

3. To annul Clauses 1, 2 and 3, Article 11.

Article 5. To annul a number of articles of Circular No. 31/2012/TT-NHNN of November 26, 2012, of the Governor of the State Bank of Vietnam, on cooperative banks

To annul Clause 6, Article 8, and Clause 1, Article 25.

Article 6. To annul a number of articles of Circular No. 04/2015/TT-NHNN of March 31, 2015, of the Governor of the State Bank of Vietnam, on people’s credit funds

To annul Point d, Clause 1, Article 31 (as amended and supplemented by Clause 3, Article 2 of Circular No. 06/2017/TT-NHNN of July 5, 2017, amending and supplementing a number of articles of Circular No. 03/2014/TT-NHNN of January 23, 2014, of the Governor of the State Bank of Vietnam, on funds to ensure safety for the system of people’s credit funds, and Circular No. 04/2015/TT-NHNN of March 31, 2015, of the Governor of the State Bank of Vietnam, on people’s credit funds).

Article 7. Responsibility to organize the implementation

The Chief of the Office, Director of the Department of Legal Affairs and heads of the units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam, chairpersons of boards of directors or members’ councils, and general directors (directors) of credit institutions and foreign bank branches shall organize the implementation of this Circular.

Article 8. Implementation provisions

This Circular takes effect on October 1, 2018.-

For the Governor of the State Bank of Vietnam
Deputy Governor
DAO MINH TU