VietnameseIn the course of operation, commercial banks must comply with various regulations on the number and establishment of transaction offices. Under current law, how many transaction offices may a commercial bank establish? The article below provides detailed information.
How many transaction offices may a commercial bank establish?
Pursuant to Article 12 of Circular No. 61/2025/TT-NHNN, the number of transaction offices that may be established is regulated as follows:
Accordingly, in addition to meeting the requirement on the total number of transaction offices prescribed in Article 7 of this Circular, a commercial bank must satisfy the following requirements:
- Inner districts of Hanoi and Ho Chi Minh City- The number of transaction offices of a commercial bank shall not exceed two (02) times the number of existing branches of the commercial bank in each of these areas and shall not exceed 20 transaction offices.
- Provinces and centrally run cities: The number of transaction offices of a commercial bank shall not exceed three (03) times the number of existing branches of the commercial bank in that province or centrally run city.
- Cases exceeding the permitted number of transaction offices
Where the number of transaction offices established before the effective date of this Circular exceeds the limits prescribed in Clauses 1 and 2 of this Article, or where at the time of application the number of transaction offices equals the limits prescribed in Clauses 1 and 2:
The commercial bank may establish no more than two (02) additional transaction offices in rural areas in each province or centrally run city per financial year.
The total number of additional transaction offices established under this provision shall not exceed the number of existing branches of the commercial bank in each province or centrally run city at the time of application.
- Commercial banks operating for 12 months or more
- Where a commercial bank has an operating period of 12 months or more, calculated from the date of commencement of operations to the time of application, it may establish no more than 10 transaction offices, provided that transaction offices located in rural areas account for at least 50% of the total number of transaction offices established in a financial year.
- The number of transaction offices managed by one (01) branch shall be decided by the commercial bank in accordance with the management capacity of each branch.
Besides, pursuant to Article 7 of Circular No. 61/2025/TT-NHNN, the total number of branches and transaction offices that may be established by a commercial bank shall satisfy the following formula:
VND 300 billion × N1 + VND 100 billion × M1 + VND 50 billion × N2 + VND 20 billion × M2 ≤ C
Within that:
C is the actual value of the charter capital of the commercial bank, determined in accordance with Clause 3, Article 28 of the Law on Credit Institutions, as at 31 December of the year preceding the year of application for commercial banks with an operating period of 12 months or more, and as at the month immediately preceding the month of application for commercial banks with an operating period of less than 12 months.
N1 is the number of branches already established and proposed to be established in the inner districts of Hanoi and Ho Chi Minh City.
N2 is the number of branches already established and proposed to be established in the outer districts of Hanoi, the outer districts of Ho Chi Minh City, and other provinces and centrally run cities.
M1 is the number of transaction offices already established and proposed to be established in the inner districts of Hanoi and Ho Chi Minh City.
M2 is the number of transaction offices already established and proposed to be established in the outer districts of Hanoi, the outer districts of Ho Chi Minh City, and other provinces and centrally run cities.
Note: The classification of branches and transaction offices into the areas specified under N1, N2, M1, and M2 shall be based on administrative boundaries at the time of application and at the time of approval.
Conditions for the establishment of transaction offices
Pursuant to Article 11 of Circular No. 61/2025/TT-NHNN, a commercial bank may establish a transaction office only if it fully satisfies the following conditions:
General conditions:
Satisfying the conditions prescribed at Points a, b, c, d, dd, e, and g, Clause 1, Article 6 of this Circular.
Profitable operations: Having profitable business results according to the audited consolidated and separate financial statements of the year immediately preceding the year of application.
Compliance with safety limits: Complying with the restrictions to ensure operational safety of credit institutions as prescribed in Articles 134, 135, 136, 137; Clause 1, Article 138; and Article 142 of the Law on Credit Institutions No. 32/2024/QH15, as amended and supplemented by Law No. 96/2025/QH15, during the 12 months immediately preceding the month of application.
Risk provisioning: Fully complying with regulations on asset classification, provisioning levels and methods, and the use of provisions to handle risks in operations during the 12 months immediately preceding the month of application.
Non-performing loan (NPL) ratio: Having an NPL ratio not exceeding 3%, or another ratio as decided by the Governor of the State Bank of Vietnam from time to time, at the relevant reporting dates.
Corporate governance and management: Having adequate governance and management structures in accordance with law and not lacking a General Director at the time of application.
No administrative sanctions: Not being subject to administrative sanctions related to organization, governance, management, or credit granting during the 12 months immediately preceding the month of application.
No restriction on network expansion: Not being subject to measures prohibiting network expansion.
- If the transaction office is proposed to be established in an area other than a rural area, the commercial bank must be rated A or B according to the most recent rating announced by the State Bank of Vietnam at the time of application and approval.
- Conditions applicable to the managing branch
Having an operating period of at least 12 months.
Having an NPL ratio within the prescribed limit.
Not being subject to administrative monetary penalties in the banking and monetary sector during the 12 months immediately preceding the month of application.
Having a positive income–expense balance in the year immediately preceding the year of application.
Complying with the requirements on the number of transaction offices prescribed in Articles 7 and 12 of Circular No. 61/2025/TT-NHNN.
