Circular No. 27/VBHN-NHNN dated June 28, 2016 of the State Bank of Vietnam integrates the Circulars governing cooperative banks

THE STATE BANK OF VIETNAM

Circular No. 27/VBHN-NHNN dated June 28, 2016 of the State Bank of Vietnam integrates the Circulars governing cooperative banks

The Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing cooperative banks, which enters into force from January 1, 2013, shall be amended and complemented by:

The Circular No. 09/2016/TT-NHNN of the Governor of the State Bank of Vietnam dated June 17, 2016 amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing cooperative banks, takes effect on August 15, 2016.

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Enterprises No. 60/2005/QH11 dated November 29, 2005;

Pursuant to the Law on Cooperatives No. 18/2003/QH11 dated November 26, 2003;

Pursuant tothe Government s Decree No. 96/2008/ND-CP dated August 26, 2008 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Upon the request of the Chief of Banking Inspection and Supervision Agency;

The Governor of the State Bank of Vietnam hereby provides for licensing, organization and operation, powers and responsibilities of the cooperative banks1

Chapter I

GENERAL PROVISIONS

Article 1. Scope of application

This Circular shall provide provisions on licensing for, organization and operation, rights and responsibilities of, the cooperative bank; processes and procedures for transformation of the Central People s Credit Fund into the cooperative bank.

Article 2. Subjects of application

1. Cooperative banks.

2. People’s credit funds.

3.Institutional and individual entities involved in establishment of, licensing for, organization and operation, powers and responsibilities of, the cooperative bank.

Article 3. Definitions

For the purpose of this Circular, terms used hereunder shall be construed as follows:

1.First General Members’ Meetingrefers to the first meeting attended by members of the cooperative bank to ratify the cooperative bank’s Charter and the cooperative bank incorporation scheme; elect the Chairperson and members of the Management Board, Chief and members of the Control Board in the first tenure; resolve on other issues pertaining to incorporation of the cooperative bank.

2.Capital contributed to establishing the membership interestrefers to the minimum amount of capital that must be contributed to be eligible to become a member of the cooperative bank.

3.Annual contributed capitalrefers to the amount of capital that a member must contribute on an annual basis to maintain its membership interest.

Article 4. Licensing authority

1. The State Bank of Vietnam (hereinafter referred to as State Bank) shall be the entity authorized to consider application for, and decide to grant, the license to establish and operate the cooperative bank (hereinafter referred to as license).

2. The State Bank shall be entitled to refuse to grant the license in the event that the institutional entity applying for that license fails to comply with provisions set forth in the Law on Credit Institutions and this Circular.

Article 5. Lifespan and geographic scope of operation of the cooperative bank

1. The maximum operational lifespan of the cooperative bank is 99 (ninety nine) years.

2. The cooperative bank shall operate within the territory of the Socialist Republic of Vietnam.

3. The cooperative bank shall be entitled to establish its domestic branches, representative offices and public service affiliates, and overseas representative offices, after obtaining the State Bank’s written consent.

Article 6. Nature and objectives of operations

The cooperative bank shall be a credit institution which is structured in a cooperative form with the main objective of building associations in, and assuring safety for, the people s credit fund network through financial patronage and supervision of operations across this network. Major functions of the cooperative bank shall comprise trade-off of funds and implementation of banking operations in which cooperative members are people s credit funds.

Article 7. Principles of preparation of an application dossier

1. The application dossier for the license granted to the cooperative bank must be made in the Vietnamese language.

2. Duplicate copies of required documents and qualifications must be authenticated as prescribed by laws and regulations.

Chapter II

LICENSING PROVISIONS

Section 1: GRANT OF THE LICENSE TO A COOPERATIVE BANK

Article 8: Licensing requirements

1. Own its charter capital which is equal to the statutory capital prescribed by the Government at the date of submission of application for its incorporation.

2. Comply with provisions set forth in Article 34 hereof when admitting people’s credit funds and other legal entities.

3. Ensure that managers, executive officers and members of the Control Board must meet regulatory eligibility and qualification requirements in accordance with the Law on Credit Institutions and Article 23, 24 and 25 hereof.

4. Establish its Charter conforming to regulations laid down in the Law on Credit Institutions, the Law on Cooperatives and other relevant legislative regulations.

5. Prepare the incorporation scheme and business plan of which feasibility has been proven within 03 (three) initial years of its operations.

6. Have its headquarter, provide sufficient infrastructure facilities, information and communication technology systems that ensure normal operations of the cooperative bank.

Article 9. Documents submitted to apply for the license

1. Application form signed by the Chairperson of the Management Board of the cooperative bank that apply for approval of its establishment (according to the Appendix No. 03 hereof).

2. The cooperative bank’s Charter.

3.The scheme for establishing the cooperative bank that specifies the following contents:

a) Necessity of such incorporation;

b) Name of the cooperative bank, location of its headquarter, operational lifespan, charter capital available upon incorporation, and scope of operations, all of which must accord with regulations set forth in the Law on Credit Institutions and this Circular.

c) Proportion of capital participations of cooperative members in which those holding at least 05% of capital participation in its charter capital must be defined;

d) Proposed organization and personnel structure:

- Personnel organization chart;

- Management, control and administrative machinery, including:

+ Management Board: Chairperson, Board Members;

+ Control Board: Head, Board Members and full-time Board Members;

+ General Director, Deputy General Directors, Chief Accountant, Directors of branches, and equivalents, as defined in the Charter of the cooperative bank;

dd) Risk management capability: Risks that may be incurred during the cooperative bank’s operations (credit risks, operational risks, market risks and liquidation risks, etc.) and other risk prevention and control measures;

e) Information technology:

- Proposal for financial investment in information technology;

- Evaluation of competence in applying information technology which clearly specifies the followings: duration for technological investment, type of technology to be applied; recommended officers and their ability to apply information technology; guarantee of compatibility and connectivity of the communication system with/to the management system of the State Bank for the purpose of providing information required to meet managerial demands of the State Bank;

e) Strategy for developing and expanding the operational network, and providing and developing banking services (providing a thorough analysis of services that will be provided, and target customers, etc.);

h) Internal control and audit system:

- Principles of operations of the internal control and audit system;

- Internal statutes that comply with regulations set forth in Clause 2 Article 93 of the Law on Credit Institutions.

i) Business plan for the first 03 years, at least including expected operating income, prudential ratios, operational efficiency indicators and demonstration of competence in implementing that plan in each year.

4. Required documents submitted by persons recommended to participate in management, control and administration activities:

a) List of recommended personnel participating in management, control and administration activities;

b) Résumé (according to the Appendix 01 hereof) and police record as defined by laws;

c) Duplicate copy of ID card, passport or other legal identity documents;

d) Public report on interests involved as prescribed in Article 118 of the Law on Enterprises;

dd) Duplicate copies of degrees or diplomas used as a proof of their educational and professional level.

5. Required documents submitted by members:

a) List of members contributing capital to the cooperative bank in which the following main contents must be specified:

- Name and location of its head office, establishment license or business registration certificate, contributed capital amount, capital participation ratio, and time limit for capital contribution;

- Full name, permanent residence, nationality, number, date and place of issue of ID card or passport or other legal identity documents with respect to persons who are contributed capital representatives;

b) Application for membership in the cooperative bank;

c) Establishment license or business registration certificate or other equivalents (applicable to legal entities which are not credit institutions);

d) Regulatory authorities’ written consent granted institutional entities (exclusive of people s credit funds) to contribution of capital to contribution of capital to establishing the cooperative bank (where available);

dd) Charter (applicable to legal entities which are not credit institutions);

e) Written authorization given to a representative to act on behalf of a legal entity (including representative of contributed capital portion) to become a member of the cooperative bank in accordance with laws and regulations.

g) ID card or passport or other legal identity documents of the legal representative of the legal entity which are not the credit institution contributing its capital to the cooperative bank;

h) Declaration of details of relatives or associates of members which are not people s credit funds (according to the Appendix No.02 hereof);

i) Financial statement prepared in the year preceding the year of establishment of the cooperative bank, and the latest financial statement prepared not later than 90 days prior to the date of submission of the application for capital contribution (applicable to the legal entity which is not a credit institution);

k) Declaration of details of contributed capital, number and proportion of shares held by each member at other credit institutions.

6. Written confirmation of the right to legally own or use location of head office.

7. Resolution of the First General Member’s Meeting on establishment of the cooperative bank.

8. Resolution of the First General Members’ Meeting on election of Chairperson, members of the Management Board, Head and members of the Control Board.

9. The Management Board’s decision on appointment of the General Director of the cooperative bank.

Article 10. Licensing process

1. The cooperative bank applicant submits 01 (one) set of documents referred to in Article 7 and 9 hereof in person or by post to the State Bank (Banking Inspection and Supervision Agency).

2. Within a permitted period of 30 days of receipt of the set of documents submitted to apply for the license, the State Bank (Banking inspection and supervision agency) sends the bank applicant its confirmation of whether all documents are valid or need to be supplemented or improved to meet regulations.    

3. Within a permitted period of 180 days of receipt of valid documents, the State Bank issues the license or sends a written notification of refusal to issue the license for which sound grounds must be stated.   

Article 11. Commencement of the cooperative bank’s operations

1. The cooperative bank granted the license as defined in Section I Chapter II hereof must carry out its business registration, information disclosure and reporting of conditions for commencement of its operations in accordance with Article 25 and 26 of the Law on Credit Institutions.

2. The cooperative bank must, whether directly or by post, send the State Bank branches, operated within centrally-affiliated cities and provinces where the cooperative bank’s head office is located, the notice of conditions for commencement of its operations as prescribed in Clause 1 of this Article at least 15 days before the scheduled commencement date.

Section 2: TRANSFORMATION OF THE CENTRAL PEOPLE’S CREDIT FUND TO THE COOPERATIVE BANK

Article 12. Procedures, and evaluation of the application, for approval of transformation and grant of the license to the cooperative bank

1. The Central People’s Credit Fund must hold the general meeting on transformation into the cooperative bank (hereinafter referred to as transformation general meeting) as stipulated by Article 13 hereof, and submit application dossiers to the State Bank for its approval of such transformation as provided for in Article 14 hereof.

2. Within a maximum period of 60 business days of receipt of the State Bank’s approval of transformation of the Central People’s Credit Fund into the cooperative bank, the former must convene its first general members’ meeting to perform the following tasks:

a) Ratify the cooperative bank’s Charter.

b) Officially elect the Chairperson and members of the Management Board, Head and members of the Control Board of the cooperative bank in the first tenure according to the list of nominees as defined in Clause 1 Article 22 hereof.

c) Ratify the business plan for 3 initial years of its operations.

3. Within a maximum period of 15 business days after the date on which the first general members’ meeting is held, the Central People’s Credit must submit dossiers required for application for the license granted to the cooperative bank under the provisions of Article 16 hereof.

4. Banking Supervision and Inspection Agency shall be responsible for entertaining and verifying such dossiers before sending an assessment report to the Governor of the State Bank for his/her consent to transformation and grant of the license to the cooperative bank.

Article 13. Transformation general meeting

1. The general meeting on transformation of Central People’s Credit Fund into the cooperative (herein after referred to as transformation general meeting) shall be convened by the Management Board of the Central People’s Credit Fund. Holding the transformation general meeting in the form of a plenary meeting attended by all members or members’ delegates of the Central People’s Credit Fund, and form of election of members’ delegates attending the transformation general meeting, shall be subject to the decision made by the Management Board of the Central People’s Credit Fund.

2. The transformation general meeting shall take on the following duties:

a) Ratify the scheme for transforming the Central People’s Credit Fund into the cooperative bank. This scheme must be composed of the followings as minimum requirements:

- Necessity for transformation of the Central People’s Credit Fund into the cooperative bank;

- Name of the cooperative bank, its head office, operational lifespan and its charter capital;

- Operational contents that conform to regulations set forth in the Law on Credit Institutions and this Circular;

- Organization, management and administration system;

- List of recommended personnel, enclosing details of qualifications and past performance in the banking sector:

+ Chairperson and members of the Management Board;

+ Head and members of the Control Board;

+ General Director.

b) Ratify the cooperative bank’s draft Charter;

c) Ratify the list of members of the cooperative bank.

Article 14. Dossiers, processes and procedures for approval of transformation of the Central People’s Credit Fund to the cooperative bank

1. After the transformation general meeting ends, the Central People’s Credit Fund shall prepare 01 (one) set of documents to request the State Bank to approve transformation of the Central People’s Credit Fund into the cooperative bank, and send these documents, whether directly or by post, to the State Bank (Banking Inspection and Supervision Agency). This set of documents includes the following components:

a) Written request submitted by the Chairperson of the Management Board of the Central People’s Credit Fund to the State Bank for its approval of transformation of the Central People’s Credit Fund into the cooperative bank;

b) Minutes of the transformation general meeting;

c) Resolution of the transformation general meeting in which the following details should be included:

- Ratify the scheme for transforming the Central People’s Credit Fund into the cooperative bank;

- Ratify the cooperative bank’s draft Charter;

- Ratify the list of members of the cooperative bank.

d) Scheme for transforming the Central People’s Credit Fund into the cooperative bank;

dd) Charter of the cooperative bank;

e) List of members of the cooperative bank.

2. Within a maximum period of 10 business days of receipt of all required documents, the State Bank shall grant the decision to approve transformation of the Central People’s Credit Fund into the cooperative bank.

Article 15: Licensing requirements

1. Persons in charge of management and administration tasks, and members of the Control Board, must meet regulatory qualification and other eligibility requirements as applied to the Central People s Credit Fund at the date of submission of application for that transformation.

2. Establish its Statutes in conformity with regulations laid down in the Law on Credit Institutions, the Law on Cooperatives and other relevant legislative regulations.

3. Have its headquarter, provide sufficient infrastructure facilities, information and communication technology systems that ensure normal operations of the cooperative bank.

Article 16. Application dossiers for the license granted to the cooperative bank

1. Written request submitted by the Chairperson of the Management Board of the Central People’s Credit Fund to the State Bank for its grant of the license to the cooperative bank;

2. The cooperative bank’s Charter ratified by the first general members’ meeting;

3. Minutes of the first general members’ meeting;

4. Resolution of the first general members’ meeting which has been ratified, including at least the following contents:

a) Ratification of the cooperative bank’s Charter;

b) Result of official election of members of the Management Board and members of the Control Board;

c) Ratification of the business plan for the first 3 initial years.

5. Dossiers of members which are people’s credit funds composed of the following details: list, location of head office and contributed capital amount.

6. Dossiers of members which are legal entities other than people’s credit institutions (where applicable) composed of the following details: list, location of head office and contributed capital amount.

7. Written confirmation of the right to legally own or use location of head office of the cooperative bank.

8. The Management Board’s decision on appointment of the General Director of the cooperative bank.

9. Business plan for the first 3 years of operations, approved by the first general members meeting.

Article 17. Processes and procedures for granting the license to the cooperative bank

1. Within a maximum period of 15 business days after the date on which the first general members’ meeting is held, the Central People’s Credit must submit 01 (one) set of documents referred to in Article 16 hereof, whether directly or by post, to the State Bank (Banking Inspection and Supervision Agency).

2. Within a period of 10 business days of receipt of all valid documents, the State Bank shall make its decision to grant the license.

Section 3: LICENSE AND LICENSING FEE

Article 18. Contents of the license

1. The license must include the following main contents:

a) License number, issue place and date;

b) Name of the cooperative bank:

- Full and abbreviated name written in Vietnamese;

- Full and abbreviated name written in English (if any);

- Transaction name (if any).

c) Location of head office;

d) Contents and scope of operations;

dd) Operational territories;

e) Charter capital;

g) Operational lifespan.

2. The State Bank shall specifically provide for contents, scope of operations, operational territories and operational lifespan in the license according to the template given in the Appendix No.05 hereof.

Article 19. Licensing fee

1. Amount of licensing fee paid by the cooperative bank shall conform to laws and regulations on fees and charges.

2. Within a permitted period of 15 (fifteen) business days after the date of issuance of the license, the cooperative bank must pay the licensing fee at the transaction center of the State Bank.

3. The licensing fee amount referred to in Clause 1 of this Article shall not be withheld from its charter capital and refunded in all cases.

Article 20. Usage of the license

1. The licensee bank must use the name and carry out its operations, and avoid performing any non-bank or other business activities, as specified in the license granted by the State Bank.

2. The cooperative bank shall not be allowed to erase, purchase, sell, assign, lease, and authorize free use of, the license.

3. Where the license is lost, stolen, damaged or burnt or destroyed in any other forms, the cooperative bank must send a written notification of reasons directly or by post to the State Bank (Banking Inspection and Supervision Agency) to request its consideration of issuance of a copy of the license from the original register in accordance with laws. Within a permitted period of 02 (two) business days of receipt of the written request, the State Bank must consider that request and decide to issue a copy of the license from the original one to the cooperative bank.

Chapter III

MANAGEMENT BOARD, CONTROL BOARD AND GENERAL DIRECTOR OF THE COOPERATIVE BANK

Article 1. Organization and operation of the Management Board, Control Board and General Director

1. The Management Board of the cooperative bank is an organ accorded the power to manage the cooperative bank which is entitled to act on behalf of the cooperative bank to decide and implement rights and obligations of the cooperative bank, except for issues that fall within the authority of the General Members Meeting.

2. The control board of the cooperative bank shall exercise its power to conduct the internal audit, control and evaluate compliance with laws and regulations, internal statutes, Charter and any resolution or decision made by the General Members Meeting and/or the Management Board.

3. The General Director is the highest-level executive of the cooperative bank and assume his/her accountability to the Management Board for implementation of his/her powers and obligations.

4. The State Bank shall recommend a representative to administer the amount of patronage fund at the cooperative bank, who is required to meet eligibility standards and requirements set out in the Law on Credit Institutions and this Circular in order for the General Members Meeting to elect that representative to hold the position as the Chairperson of the Management Board, Head of the Control Board, a member of the Management Board working in a dual office holding regime as the General Director of the cooperative bank.

5.The Management Board, Control Board and General Director of the cooperative bank shall be organized and operated under the Law on Credit Institutions and Article 22, 23, 24, 25, 26, 27 and 28 hereof.

Article 22. Approval of the list of recommended persons to be elected or appointed to become members of the Management Board, Control Board and General Director

1. The list of recommended persons to be elected or appointed to become members of the Management Board, Control Board and General Director of the cooperative bank shall be subject to the written approval granted by the State Bank before election or appointment takes place. Those who are elected or appointed to become members of the Management Board, Control Board and General Director of the cooperative bank must be present in the list approved by the State Bank.

2. The cooperative bank must send a written notification, whether directly or by post, to the State Bank (Banking Inspection and Supervision Agency), of the list of persons elected or appointed to hold positions referred to in Clause 1 of this Article no later than 10 (ten) business days after the date of election or appointment.

Article 23. Qualification requirements for becoming the Chairperson and members of the Management Board

1. The Chairperson of the Management Board must meet the following standards:

a) Acquire at least 05 (five) years’ experience in the banking domain;

b) Be used to hold a position as the manager or executive officer in a banking institution for a period of at least 02 (two) years in the past;

c) Obtain a university degree or higher in one of the disciplines, such as the economics, finance, accounting, audit, bank and law.

2. A member of the Management Board must meet the following standards:

a) Acquire at least 02 (two) years’ experience in the banking domain;

b) Be used to hold a position as the manager or executive officer in a banking institution for a period of at least 01 (one) year in the past;

c) Obtain a university degree or higher in one of the disciplines, such as the economics, finance, accounting, audit, bank and law.

3. The Chairperson or member of the Management Board is not the one provided for in Article 33 and 34 of the Law on Credit Institutions.

Article 24. Qualification requirements for becoming members of the Control Board

1. A member of the Control Board must meet the following standards:

a) Acquire at least 03 (three) years’ experience in the field of accounting, audit, finance and bank;

b) Obtain a university degree or higher in one of the disciplines, such as the economics, finance, accounting, audit and bank.

2. A full-time member of the Control Board must reside in Vietnam during his/her incumbency, and shall be prohibited from holding other positions or performing other tasks at any other credit institution or enterprise.

3. A member of the Control Board is not the one referred to in Article 33 and 34 of the Law on Credit Institutions.

Article 25. Qualification requirements for becoming the General Director

1. Acquire at least 05 (five) years’ experience in the banking domain;

2. Be used to hold a position as the manager or executive officer in a banking institution for a period of at least 03 (three) years in the past;

3. Attain a university degree or higher in one of the disciplines, such as the economics, finance, bank, business governance and law.

4. Register a permanent residence in Vietnam.

5. Be not the one referred to in Article 33 and 34 of the Law on Credit Institutions.

Article 26. Duties and powers of the Chairperson of the Management Board

The Chairperson of the Management Board is the legal representative of the cooperative bank who is responsible for implementing the following duties and powers:

1. Set up the plan and schedule for operations of the Management Board, assign tasks, conduct overall monitoring and oversight of performance of members of the Management Board.

2. Prepare work contents, agenda, convene and preside over meetings of the Management Board and the General Members’ Meeting.

3. Assume his/her accountability to the General Members’ Meeting and the Management Board for his/her assigned tasks.

4. Sign documents issued by the General Members’ Meeting and the Management Board in accordance with laws and regulations and Charter of the cooperative bank.

5. Implement other powers and duties specified in the Charter of the cooperative bank.

Article 27. Management Board’s meeting

1. The Management Board’s meeting shall be valid if at least two-thirds of the members of the Management Board are present. The Management Board shall be operated according to the collective principle, and make a decision by majority vote. In case the number of favorable votes is equal to the number of dissenting votes, the number of votes composed of the vote cast by the person presiding at the meeting shall be decisive.

2. If the first meeting of the Management Board is adjourned on the grounds that the number of members attending is too small to constitute a stipulated quorum, the Chairperson of the Management Board must convene the second meeting within a maximum period of 15 consecutive business days. If after two postponements no quorum can yet be constituted, the Chairperson of the Management Board shall be responsible for reporting to the next General Members’ Meeting to evaluate membership of the members that do not attend the meeting and take appropriate disciplinary actions.

3. All contents of, and conclusions reached in, each session of the General Members Meeting must be recorded into the minute book. Minutes of meetings of the Management Board must be fully signed by the meeting chair and secretary. The meeting chair and secretary shall assume joint responsibility for accuracy and integrity of these minutes. Members of the Management Board shall be entitled to retain their opinions and retained opinions shall be recorded in the meeting minutes.

Article 28. Duties and powers of the Head of the Control Board

1. Bear responsibility for assigning and directing members of the Control Board to implement duties and powers of the Control Board.

2. Establish programs and plans for inspection, oversight and monitoring of implementation of specific duties of members.

3. Convene and preside at meetings of the Control Board.

4. Authorize one of the members of the Control Board to act on behalf of the Head to undertake tasks during his/her absence.

5. Request the Management Board to convene an irregular meeting to handle violations against laws and regulations and the Charter of the cooperative bank.

6. Convene and preside at the irregular General Members’ Meeting in accordance with Clause 3 Article 37 hereof.

7. Implement other powers and duties specified in the Charter of the cooperative bank.

Chapter IV

CHARTER CAPITAL, CONTRIBUTED CAPITAL, AND TRANSFER AND RETURN OF CONTRIBUTED CAPITAL OF THE COOPERATIVE BANK

Article 29. Charter capital

1. The charter capital is the amount of capital specified in the Charter of the cooperative bank, including:

a) Capital contributed by member people s credit funds;

b) Government’s patronage fund;

c) Capital contributed by other legal entities.

2. Capital-contributing members cannot use trust or borrowed funds in any form for contributing capital to establishment of the cooperative bank, and must clearly identify the funding source, undertake and bear responsibility for legality of the contributed capital.

3. Capital participation in establishment of the cooperative bank must strictly observe applicable laws and conform to the following requirements:

a) With respect to legal entities licensed to operate in the banking, securities and insurance sectors, capital contribution must abide by relevant laws and regulations;

b) With respect to legal entities operating in the business activities that conform to statutory capital requirements, the maximum agreed-upon amount of contributed capital shall not exceed the owner s equity less the predetermined statutory capital;

c) With respect to other legal entities, the maximum agreed-upon amount of contributed capital shall equal the owner s equity minus the difference between long-term investments and long-term liabilities (method of determination specifically provided for in the Appendix No.04 hereto).

Article 30. Form of capital contribution to the charter capital

Contributions to the charter capital of the cooperative bank may be made in Vietnamese dong or other kinds of asset.

Other kinds of asset used as contributions to the charter capital must be those assets of which the right of ownership and use is proven by legal certificates (those which are necessary assets directly assisting in operations of the cooperative bank). Valuation and transfer of the right to own assets given as capital contributions shall comply with applicable laws and regulations.

Article 31. Contribution of capital to participating in the cooperative bank

1. The minimum amount of capital contributed to establishing the membership interest in the cooperative bank is 10,000,000 (ten million) dong.

2. The minimum annual amount of contributed capital of the cooperative bank members is 1,000,000 (one million) dong.

The specific amount of contributed capital shall be decided by the General Members’ Meeting. The cooperative bank members shall be exempted from paying annual contributed capital in the first financial year after the date of commencement of its operations. Annual capital contribution must be completed no later than 30 (thirty) days from the closing date of the General Members Meeting.

3. Total maximum contributed capital (including capital contributed to establishing membership interest and annual contributed capital) of a member (inclusive of transferred capital) shall be decided by the General Member’s Meeting and recorded into the Charter of the cooperative bank, but not exceed 30% of the charter capital of the cooperative bank at the date of capital contribution and acquisition of transferred capital, except for state capital shares invested in the cooperative bank.

Article 32. Method for distribution of profits

Distribution of profits based on the amount of contributed capital (capital contributed to establishing membership interest and annual contributed capital), and level of usage of services provided by the cooperative bank, shall be decided by the General Members Meeting and conform to laws and regulations.

Article 33. Transfer and return of contributed capital

1. Transfer of contributed capital by members shall be carried out in accordance with the following provisions:

a) If a member is a people’s credit fund, it shall be allowed to transfer a part of its contributed capital (but it shall be required to maintain the minimum amount of capital contributed to establishing membership interest and annual contributed capital) to other legal entities that meet requirements set forth in Article 34 hereof.

b) If a member is not a people’s credit fund, it shall be allowed to transfer either all or part of its contributed capital to other legal entities that meet requirements set forth in Article 34 hereof. In case of transferring a part of contributed capital, a cooperative member must maintain the minimum amount of capital contributed to establishing membership interest and annual contributed capital as provided for by Article 31 hereof.

2. Upon termination of membership as stipulated by Article 35 hereof, a cooperative member may choose to transfer its contributed capital, interests and obligations to other legal entities, or receive its contributed capital returned or profits earned therefore (where applicable) and other benefits defined in Clause 4 of this Article.

2. In case of termination of membership, transfer of a cooperative member’s contributed capital to other legal entities must meet requirements set out in Article 34 hereof.

4. Return of contributed capital and profits earned from contributed capital (where applicable) to members must take into consideration the financial status of the cooperative bank in the year-end financial report, and may be acceptable only if the following requirements are observed:

a) Such return does not reduce the charter capital of the cooperative bank to the lower amount than the predetermined statutory capital;

b) Such return does not result in any violation against the prudential ratio stipulated by the State Bank;

c) Sufficient liquidity is maintained at the date upon which such return occurs;

d) The cooperative member has fully discharged its financial obligations to the cooperative bank, including:

- Have already repaid all of debts owed (both principal and interest);

- Have already compensated for losses for which it assumes several or joint liability;

- Have already managed to deal with business losses and risks in proportion with the amount of contributed capital for which it assume joint liability under the decision made by the General Members Meeting.

5. Return and transfer of all of a member’s contributed capital shall be subject to ratification by the General Members’ Meeting.

Chapter V

PROVISIONS ON COOPERATIVE BANK MEMBERS

Article 34. Eligibility requirements for becoming a cooperative member

1. With respect to people’s credit funds and other credit institutions, they must not be subject to any special control as provided in Clause 3 Article 146 of the Law on Credit Institutions at the date of submission of application for membership.

2. With respect to other legal entities, they must generate operating profits in the year prior to the application year.

3. Those stipulated in Clause 1 and 2 of this Article must contribute the predetermined amount of capital as prescribed by Article 31 hereof, and must submit applications for membership and assign their legal representatives to participate in the cooperative bank.

Article 35. Termination of membership

A member’s membership in the cooperative bank shall be terminated if:

1. The member’s legal personality is terminated.

2. The member which is not a people’s credit fund:

a) does not have its representative that satisfies requirements set forth in laws and the Charter of the cooperative bank;

b) fails to make sufficient annual capital contributions as stipulated by Clause 2 Article 31 hereof;

c) has already disposed of all of its contributed capital to other legal entity in accordance with Clause 1 Article 33 hereof.

3. The member is allowed to resign, or is discharged, from membership in the cooperative bank by the General Members’ Meeting in accordance with laws and the Charter of the cooperative bank.

Chapter VI

GENERAL MEETING OF COOPERATIVE BANK MEMBERS

Article 36. First General Members’ Meeting

The first General Members’ Meeting is a plenary meeting of members or a meeting of representatives of members of the cooperative bank that works on the following contents:

1. Ratify the scheme for establishing the cooperative bank.

2. Ratify the cooperative bank’s Charter.

3. Elect the President and members of the Management Board, Head and members of the Control Board of the cooperative bank in the first tenure according to the list of nominees as defined in Clause 1 Article 22 hereof.

4. Ratify the business plan for a period of 3 initial years of its operations.

Article 37. General meeting of cooperative bank members

1. The General Members’ Meeting is an organ accorded the ultimate decision-making power of the cooperative bank to implement duties and powers referred to in Article 80 of the Law on Credit Institutions.

2. The General Members’ Meeting must be held once a year and convened by the Management Board within a period of 03 (three) months from the last date of a given financial year.

3. An irregular General Members’ Meeting shall be held in the following cases:

a) The Management Board convenes such meeting on grounds of the benefits of the cooperative bank or upon the written request of at least 1/3 (one-third) of the members;

b) The meeting is held upon the request of the Control Board as provided in Clause 6 Article 84 of the Law on Credit Institutions;

c) The meeting is held upon the request of the State Bank in case there is any event that may cause impacts on safety for operations of the cooperative bank;

d) The meeting is held in other cases as defined be the Charter of the cooperative bank.

Within a permitted period of 15 (fifteen) days of receipt of the written call for the General Members Meeting from at least 1/3 (one-third) of the members, if the Management Board fails to convene the irregular General Members Meeting, members calling that meeting may request the State Bank in writing to take charge of holding and opening of the General Members’ Meeting whenever necessary.

Article 38. Authority of the General Members’ Meeting

The General Meeting of Members of the cooperative bank shall be accorded authority to discuss and decide the following contents:

1. Annual income statements; Performance reports of the Management Board and Control Board.

2. Recommendation for profit distribution.

3. Business plan and objectives for the coming year.

4. Increase or decrease in the charter capital, and level of capital contributed by cooperative members.

5. Election, appointment and dismissal of the Chairperson, other members of the Management Board, Head and other members of the Control Board.

6. The list of new members admitted into the cooperative bank; forced resignation of members from the cooperative bank as requested by the Management Board.

7. Amendment to, and supplementation of, the cooperative bank’s Charter.

8. Dissolution and bankruptcy of the cooperative bank.

9. Others suggested by the Management Board, Control Board or at least 1/3 (one-third) of the members of the cooperative bank.

Article 39. Holding of the General Members’ Meeting

1. The General Members’ Meeting of the cooperative bank can be held in a form of a plenary meeting of cooperative members or a meeting of representatives of members (hereinafter referred to as General Members’ Meeting).

2. The plenary meeting of members or the meeting of representatives of members shall have the same duties and powers. Based on current conditions, the Management Board shall decide method for holding of the General Members Meeting, election, number of representatives of members participating in the General Members’ Meeting in each session.

3. The number of representatives of members invited to participate in the General Members’ Meeting shall not be less than 20% of the members.

4. The General Members’ Meeting shall be deemed valid if at least 2/3 (two-thirds) of the members or representatives of members invited are present.

5. If a quorum (including either members or representatives of members) is not present as stipulated by Clause 4 of this Article, the Management Board or Control Board must postpone the General Members Meeting and re-invite them within a period of 30 (thirty) days from the date of postponement (with respect to the annual General Members’ Meeting, the time limit for postponement and re-invitation shall not exceed the time limit for holding of the General Members’ Meeting as stipulated in Clause 2 Article 37 hereof).

6. Decision to amend or supplement the Charter, resolve and file for bankruptcy of the cooperative bank shall be approved only if more than ¾ (three-quarters) of the members or representatives of members present at the General Members’ Meeting vote in favor of that decision.

7. Decisions to handle other issues shall be approved only if more than ½ (half) of the members present at the General Members Meeting vote in favor of these decisions.

8. Casting votes at the General Members’ Meeting shall not be subject to the amount of capital contributed, or titles held, by cooperative members. Each member shall be given only one ballot. A ballot shall represent the number of members of which the representative acts on behalf.

Article 40. Notice of convening of the General Members’ Meeting

The body convening the General Members’ Meeting must send an invitation to each member or representative within a period of not later than 07 (seven) business days before opening of the meeting if the Charter of the cooperative bank does not provide for specific time limit. The invitation must specify the meeting time, venue, contents, agenda and discussion materials.

Chapter VII

OPERATIONS OF THE COOPERATIVE BANK

Article 41. Transactions with member people s credit funds2

1. Receive deposits from and offer loans for trade-off purposes to member people’s credit funds under capital trade-off regulations.

Institution and contents of capital trade-off regulations must conform to the following principles:

a) People s credit funds deposit their money (indefinite or definite term) in the cooperative bank for capital trade-off purposes. In case of premature withdrawal, people’s credit funds must inform the cooperative bank in advance;

a) Member people s credit funds are granted loans from the cooperative bank for capital trade-off purposes when demands for capital used for credit expansion arise;

c) Subsidization regulations on the deposit facility interest rate must be applied, and the lending facility interest rate on loans for trade-off purposes must be explicit, unprofitable and promote association between the cooperative bank and people’s credit funds;

d) Specific regulations on applicable subjects, limits, processes, dossiers and evidence documents relating to acceptance of deposits and grant of loans on a trade-off basis must be made;

dd) The cooperative bank must establish, collect opinions from all of the member people’s credit funds on, and approve capital trade-off regulations at the General Members Meeting of the cooperative bank. After introducing the capital trade-off regulations, the cooperative bank shall hold training sessions for, and disseminate information about these regulations to, member people s credit funds, and send them to the State Bank (Banking Inspection and Supervision Agency) to perform its inspection and supervision activities. Amendment to, and supplementation of, capital trade-off regulations approved by the General Members Meeting of the cooperative bank.

2. Offer loans to member people s credit funds to deal with temporary difficulties in liquidity.

3. Open checking accounts, and provide payment instruments to member people s credit funds.

4. Design, develop and use new products and services in activities of member people’s credit funds to meet these members’ demands and serve the purpose of multiplying community benefits throughout its area.

5. Perform other banking transactions specified in laws and regulations with member people’s credit funds.

Article 42. Transactions with customers other than member people s credit funds

1. The cooperative bank shall be entitled to perform certain banking and other business activities under the provisions of Section 2 Chapter IV of the Law on Credit Institutions with the State Bank s written consent.

2. The cooperative bank shall offer loans to customers other than member people s credit funds after meeting capital trade-off demands of member people s credit funds.

3. As the case may be, the State Bank can impose restrictions on credit granted by the cooperative bank to customers other than member people s credit funds.

Article 43. Application of regulations on safety for banking activities

1. The cooperative bank shall implement regulations on safety for banking activities in accordance with provisions laid down in the Law on Credit Institutions and the State Bank’s specific directives.

Chapter VIII

RIGHTS AND RESPONSIBILITIES OF THE COOPERATIVE BANK IN A RELATIONSHIP WITH PEOPLE’S CREDIT FUNDS

Article 44. Rights3

1. Have access to the information system of the State Bank to collect information about activities of people’s credit funds.

2. Request people’s credit funds to provide reports used for capital trade-off and system security monitoring purposes.

3. Inspect and oversee use of loans and capacity to repay loans obtained by member people’s credit funds from the cooperative bank.

Article 45. Responsibilities4

1. Provide member people’s credit funds with guidance on and training in banking and information technology practices.

2. Assist people’s credit funds in banking activities as prescribed by laws and regulations.

3. Participate in implementation of remedial measures in the event that member people’s credit funds are faced with difficulties or incur risks of safety in its activities.

4. Adopt capital trade-off regulations referred to in Clause 1 Article 41 hereof after obtaining approval from the General Members’ Meeting of the cooperative bank.

5. Assist people’s credit funds in carrying out internal audits as requested by these funds.

6. Contribute opinions in writing on the proposed list of personnel to be elected and appointed to become the Chairperson and other members of the Management Board, Head and other members of the Control Board, Director of member people’s credit funds upon the request of the State Bank branches of centrally-affiliated cities and provinces.

7. Carry out other responsibilities specified in the Charter of the cooperative bank and laws.

Chapter IX

IMPLEMENTARY PROVISIONS

Article 46. Responsibilities of Banking Inspection and Supervision Agency

1. Act as the focal point for dealing with difficulties that may arise in the course of implementation of this Circular.

2. Collaborate with other subordinate units of the State Bank in making arrangements for and initiating assessment of application dossiers for the license, and petition the Governor of the State Bank to consider the case and make his decision to grant the license to the cooperative bank.

3.5Lead and collaborate with relevant bodies to inspect and supervise the cooperative bank s activities; keep and request the cooperative bank to amend or supplement capital trade-off regulations in accordance with Clause 1 Article 41 hereof to make them conform to laws and regulations whenever necessary.

4. Provide information and data for competent bodies or units on the cooperative bank s activities, and compliance with relevant laws on the cooperative bank s activities.

Article 47. Responsibilities of affiliates of the State Bank

1. Monitor, and cooperate with the Banking Inspection and Supervision Agency on, management of the cooperative bank’s activities within their jurisdiction and competence.

2. Where necessary, cooperate with the Banking Supervision and Inspection Agency in assessment of application dossiers for the license granted to the cooperative bank under the direction of the Chairperson of the Assessment Board.

Chapter X

EFFECT

Article 48. Transitional provisions

1. The cooperative bank shall uphold and continue conformity with legal powers, obligations and benefits, as well as assume responsibilities for handling any unsolved issues that exist during the operation of the Central People s Credit Fund in conformity with regulations laid down in the Law on Credit Institutions and relevant laws.

2. The cooperative bank and customers shall continue to implement contracts and transactions signed between the Central People’s Credit Fund and customers which remain valid till the agreed expiry date. Amending, supplementing and terminating contracts and transactions shall be carried out by mutual agreement and conform to provisions of the Law on Credit Institutions and relevant laws.

Article 49.Effect

This Circular takes effect on January 1, 2013.

Article 50. Implemental arrangement

The Chief of Office, Chief of the Bank Inspection and Supervision Agency, Heads of affiliates of the State Bank, Directors of State Bank branches of centrally-affiliated cities and provinces, Chairperson and members of the Management Board, Head and members of the Control Board, General Director of the cooperative bank, and other persons or entities concerned, shall be responsible for implementing this Circular./.

APPENDIX 01

RÉSUMÉ

(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

RÉSUMÉ

1. Personal particulars:

- Full name on the birth certificate:

- Usual full name:

- Alias name:

- Birth date:

- Birth place:

- Nationality:

+ Original nationality:

+ Current nationality:

- Permanent residence in the household registry:

- Residence in the ID card (or passport):

- Current residence:

- Number of ID card, passport or other legal identity documents, issue date and place:

- Name and address of the legal entity; amount and proportion of contributed capital (applicable to the legal entity’s representative of contributed capital):

2. Educational background:

Name of the educational establishment, name of the city or country where that establishment is based, name of training course, training period, full name of the degree (describe in detail degrees or educational programs pertaining to qualification standards and requirements for posts to which the applicant is elected and appointed).

3. Work summary:

- Past performance, professions and posts (from 18 years of age till now): what?, where?, and summary of main points.

- Posts undertaken in other organizations.

- Posts to be taken over in the cooperative bank.

- Rewards or disciplinary actions (where applicable).

4. Relationship:

- Fully describe family relationships, including fathers, mothers, spouses, sons or daughters, brothers or sisters (specify full name, age, residence and workplace);

- Number of the business registration certificate of the legal entity; full name, birth date and number of the ID card or passport of the legal representative of that legal entity.

5. Statement on assumption of legal responsibility

- I undertake not to violate regulations of laws, the State Bank and the cooperative bank s Charter.

- I hereby undertake that the abovementioned information is true. I bear full responsibility for any information misrepresented herein.

6. Signature and full name of the declarant

7. Attached herein is the certification of the People’s Committee of the administrative division where the declarant registers permanent residence, or of the host body for which the declarant is working.

(In addition to basic information mentioned above, the declarant can provide others whenever necessary).

APPENDIX 02

DECLARATION OF RELATIVES OR ASSOCIATES
(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
----------------

DECLARATION OF DETAILS OF RELATIVES OR ASSOCIATES

I hereby undertake that details provided in the abovementioned declaration are true. If there is any misrepresented information, I fully take legal responsibility.

INSTRUCTIONS

1. At the column (2), describe all of relatives or associates concerned as referred to in Clause 28 Article 4 of the Law on Credit Institutions.

2. At the column (4), specify relationship with the declarant.

3. At the column (5), specify name of credit institutions contributing capital or holding shares.

4. At the section (8), if the declarant is a legal entity, the representative of that legal entity can sign his/her name.

APPENDIX 03

APPLICATION FOR THE LICENSE
(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
----------------

………, date:…..

APPLICATION FOR THE LICENSE

COOPERATIVE BANK

Dear the Governor of the State Bank of Vietnam

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Circular No...../2012/TT-NHNN dated ../../2012 of the Governor of the State Bank of Vietnam on the cooperative bank;

Pursuant to the minutes of the General Members’ Meeting held on date:……….with respect to............;

Pursuant to the minutes of the meeting of the Management Board held on date:……..on appointment of the General Director of the cooperative bank;

The Management Board………. hereby acts on behalf of members to petition the Governor of the State Bank of Vietnam to:

I/ Grant the license to the cooperative bank with the following details:

1. Name of the cooperative bank:

- Full name written in Vietnamese;

- Abbreviated name written in Vietnamese;

- Full name written in English (if any);

- Abbreviated name written in English (if any);

- Transaction name (if any).

2. Location of head office, telephone and fax number:

3. Operational territories:

4. Contents and scope of operations:

5. Operational lifespan:

6. Charter capital:

II/ Register the cooperative bank’s Charter

We hereby undertake to strictly comply with regulations of laws, the State Bank of Vietnam and the cooperative bank’s Charter, and in case of committing any violation, bear legal responsibility for it.

APPENDIX 04

METHOD FOR DETERMINING FINANCIAL CAPACITY OF A LEGAL ENTITY WHICH IS NOT A CREDIT INSTITUTION
(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

1. General formula:

2. Detailed formula:

A = E - LI and

LI = LA - LD

Where:

+ A: Financial capacity eligible for capital participation in the cooperative bank

+ E: Owner’s equity

+ LI: Difference between long-term investments and long-term liabilities

+ LA: Long-term asset

+ LD: Long-term liabilities

3. Conclusions:

* If A >= the agreed amount of capital contributed to the cooperative bank, the legal entity shall be judged to have sound and sufficient financial capacity to contribute capital to the cooperative bank.

* If A< the agreed amount of capital contributed to the cooperative bank, the legal entity shall be judged to have unsound and insufficient financial capacity to contribute capital to the cooperative bank.

APPENDIX 05

SAMPLE LICENSE
(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

LICENSE

TO ESTABLISH AND OPERATE THE COOPERATIVE BANK

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Government s Decree No. 96/2008/ND-CP dated August 26, 2008 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to the Circular No...../2012/TT-NHNN dated ..2012 of the Governor of the State Bank of Vietnam on the cooperative bank;

After considering the application for the license filed by the Chairperson of the Management Board and attached dossiers:

Upon the request of the Chief of Banking Inspection and Supervision Agency,

HEREBY DECIDES:

Article 1.Agree to grant the license to establish the cooperative bank with the following details:

1. Name of the cooperative bank:

- Full name written in Vietnamese;

- Abbreviated name written in Vietnamese;

- Full name written in English (if any):

- Abbreviated name written in English (if any):

- Transaction name (if any):

2. Location of head office:

Article 2.Contents and scope of operations:

Operations...(list activities or operations which have been proposed and approved in accordance with provisions of the Law on Credit Institutions and this Circular);

Article 3.Operational territories:

Article 4.The charter capital of the cooperative bank is VND… (in words:…).

Article 5.The operational lifespan of the cooperative bank is … years.

Article 6.In the course of its operations, the cooperative bank must comply with Vietnamese laws.

Article 7.This license is valid from the signing date.

Article 8.The license shall be made into 05 (five) original copies: 01 (one) copy issued to the cooperative bank; 01 (one) copy used for business registration purpose; 03 (three) remaining copies deposited with the State Bank of Vietnam (including 01 copy deposited at the office of the State Bank of Vietnam; 01 copy deposited at the State Bank branch of the city or province where the cooperative bank s proposed head office is located; 01 copy archived in the file of licenses granted to cooperative banks).

The Governor

The Certification of Integrated Document

For the Governor

The Deputy Governor

Nguyen Dong Tien

1The Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the State Bank’s Governor on the cooperative bank has the following bases for its enactment:

“Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Enterprises No. 68/2014/QH13 dated November 26, 2014;

Pursuant to the Law on Cooperatives No. 23/2012/QH13 dated November 20, 2012;

Pursuant to the Government s Decree No. 156/2013/ND-CP dated November 11, 2013 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Upon the request of the Chief of Banking Inspection and Supervision Agency;

The Governor of the State Bank of Vietnam hereby introduces the Circular amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the State Bank’s Governor on the cooperative bank.”

2This Article is amended according to the provisions of Clause 1 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing cooperative banks, which enters into force from August 15, 2016, and enters into force from August 15, 2016.

3This Article is amended according to the provisions of Clause 2 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and enters into force from August 15, 2016.

4This Article is amended according to the provisions of Clause 3 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and enters into force from August 15, 2016.

5This Article is amended according to the provisions of Clause 4 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and enters into force from August 15, 2016.

6Article 2 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and entering into force from August 15, 2016, shall be provided for as follows:

“Article 2. Effect

1. This Circular takes effect August 15, 2016.

2. The Chief of Office, Chief of the Banking Inspection and Supervision Agency, Heads of affiliates of the State Bank, Directors of State Bank branches of centrally-affiliated cities and provinces, Chairperson of the Management Board, and General Director of the cooperative bank, shall implement this Circular.”