Circular 28/2018/TT-NHNN amending and supplementing Circular 40/2011/TT-NHNN on granting licenses

CIRCULAR

Amending and supplementing a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the grant of licenses for and organization and operation of commercial banks, foreign bank branches, and representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam

Pursuant to the June 16, 2010 Law on 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. 40/2011/TT-NHNN of December 15, 2011, providing the grant of licenses for and organization and operation of commercial banks, foreign bank branches, and representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam.

Article 1.  To amend and supplement a number of articles of the Governor of the State Bank of Vietnam’s Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the grant of licenses for and organization and operation of commercial banks, foreign bank branches, and representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam (below referred to as Circular No. 40/2011/TT-NHNN)

1. To amend and supplement Article 3 as follows:

“Article 3. Competence to decide on grant of licenses

1. The State Bank Governor may decide to grant licenses under the Law on Credit Institutions, this Circular and relevant laws.”

2. To amend and supplement Clause 2, Article 6 as follows:

“2. The licensing fee rates must comply with the law on charges and fees.”

3. To amend and supplement the title of Section 2, Chapter II as follows:

“Section 2

CONDITIONS FOR FOUNDING SHAREHOLDERS OF JOINT-STOCK COMMERCIAL BANKS, FOUNDING MEMBERS OF JOINT-VENTURE BANKS, OWNERS BEING FOREIGN CREDIT INSTITUTIONS OF WHOLLY FOREIGN-OWNED BANKS, AND PARENT BANKS OF FOREIGN BANK BRANCHES”

4. To amend and supplement the title of Article 9 as follows:

“Article 9. Conditions for founding shareholders of a joint-stock commercial bank”

5. To amend and supplement the title of Article 10 as follows:

“Article 10. Conditions for founding members of a joint-venture bank, and owners being foreign credit institutions of a wholly foreign-owned bank”

6. To amend and supplement the title of Article 11 as follows:

“Article 11. Conditions for the parent bank of a foreign bank branch”

7. To amend and supplement Point a, Clause 4, Article 14 as follows:

“a/ Resumes, made according to the form provided in Appendix 03 to this Circular; criminal record certificates:

For persons holding Vietnamese citizenship: Criminal record certificates must be issued by criminal record database-managing agencies, containing information on previous criminal conviction status (including previous criminal convictions already remitted and not yet remitted) and information on the ban on holding certain positions or establishing or managing enterprises or cooperatives;

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