Circular No. 20/VBHN-NHNN on providing the licensing, organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam[1]

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

CONSOLIDATED TEXT - THE STATE BANK OF VIETNAM

CIRCULARS

Providing the licensing, organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam^[1]

The State Bank Governor’s Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the licensing, organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam, which took effect on February 1, 2012, and was amended and supplemented by:

The State Bank Governor’s Circular No. 17/2017/TT-NHNN of November 20, 2017, amending and supplementing a number of articles of Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the licensing, organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam, which takes effect on January 5, 2018.

The State Bank Governor’s Circular No. 17/2018/TT-NHNN of August 14, 2018, 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, which takes effect on October 1, 2018.

The State Bank Governor’s Circular No. 28/2018/TT-NHNN of November 30, 2018, amending and supplementing a number of articles of Circular No. 40/2011/TT-NHNN of December 15, 2011, providing the licensing, 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, which takes effect on January 15, 2019.

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

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

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

Pursuant to the November 29, 2005 Law No. 59/2005/QH11 on Investment;

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

The State Bank of Vietnam (below referred to as the State Bank) prescribes the licensing, 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 as follows ^[2],[3],[4]:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation:

This Circular provides the licensing and some contents related to the 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.

2. Subjects of application include:

a/ Commercial banks;

b/ Foreign bank branches;

c/ Representative offices of foreign credit institutions and other foreign institutions engaged in banking activities in Vietnam (below referred to as representative offices);

d/ Organizations and individuals involved in the establishment, organization and operation of commercial banks, foreign bank branches and representative offices.

Article 2. Interpretation of terms

In this Circular, the terms and expressions below are construed as follows:

1. Licenses include license for establishment and operation of commercial banks, license for establishment of foreign bank branches and license for establishment of representative offices granted by the State Bank. The State Bank’s documents modifying or supplementing licenses constitute an integral part of such licenses.

2. Commercial bank means a type of bank allowed to conduct all banking activities and other business activities under the Law on Credit Institutions for profits.