Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the State Bank of Vietnam on prescribing dossiers, order and procedures for approving changes of commercial banks and foreign bank branches

CIRCULAR

Prescribing 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 prescribing dossiers, order and procedures for approving changes of commercial banks and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular prescribes:

a/ Dossiers, order and procedures for approving changes in, and modification of, establishment and operation licenses of commercial banks or establishment licenses of foreign bank branches (below referred to as licenses) regarding the following information:

(i) Changes in names and locations of head offices of commercial banks; or changes in names and locations of offices of foreign bank branches;

(ii) Increase in charter capital of commercial banks or allocated capital of foreign bank branches;

(iii) Extension of the operation duration;

b/ Dossiers, order and procedures for approving changes of commercial banks and foreign bank branches:

(i) Purchase and sale or transfer of capital contributions of owners of single-member limited liability commercial banks; purchase and sale or transfer of capital contributions of capital-contributing members of limited liability commercial banks with two or more members;

(ii) Purchase and sale or transfer of shares of major shareholders; purchase and sale or transfer of shares by/to shareholders to become major shareholders of commercial banks;

(iii) Suspension of business operation for at least 5 working days, except the case where business operation is suspended for a force majeure event.   

2. The purchase and sale or transfer of shares or capital contributions leading to the legal transformation of commercial banks must comply with the State Bank’s regulations and relevant regulations.

3. The transfer of all capital contributions and the whole charter capital of a commercial bank that has been compulsorily purchased must comply with Clause 3, Article 3 of the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions.

4. Foreign investors may purchase shares of Vietnamese commercial banks in accordance with the regulations on purchase by foreign investors of shares of Vietnamese credit institutions.

Article 2. Subjects of application

1. Commercial banks.

2. Foreign bank branches.

3. Organizations and individuals related to dossiers, order and procedures for approving changes of commercial banks and foreign bank branches prescribed in this Circular.

Article 3. Principles of making and sending dossiers of request for approval of changes

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