Circular 07/2025/TT-NHNN amend Circular 39/2024/TT-NHNN providing the special control of credit institutions

CIRCULAR

Amending and supplementing a number of articles of Circular No. 39/2024/TT-NHNN dated July 01, 2024, of the Governor of the State Bank of Vietnam, providing the special control of credit institutions

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Government’s Decree No. 26/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Banking System Safety;

The Governor of the State Bank of Vietnam hereby promulgates the Circular amending and supplementing a number of articles of Circular No. 39/2024/TT-NHNN dated July 01, 2024, of the Governor of the State Bank of Vietnam, providing the special control of credit institutions.

Article 1. Amending and supplementing a number of articles of Circular No. 39/2024/TT-NHNN dated July 01, 2024, of the Governor of the State Bank of Vietnam, providing the special control of credit institutions

1. To amend and supplement Article 1 as follows:

“Article 1. Scope of regulation

This Circular specifies the competence to decide on special control over credit institutions; forms of special control; the special control decision; notification and disclosure of information on special control; the duration of special control, extension of the special control duration, and termination of special control; reduction of charter capital of commercial banks under special control of which the mandatory transfer plans have been approved by the State Bank of Vietnam; the composition, number of members, structure, operational mechanism, tasks, and powers of the Special Control Board; and the responsibilities of relevant agencies, organizations, and individuals.”

2. To add Article 7a after Article 7 as follows:

“Article 7a. Reduction of charter capital of commercial banks under special control of which the mandatory transfer plans have been approved by the State Bank of Vietnam

1. Within 10 days from the date on which the State Bank approves the mandatory transfer plan in accordance with Clause 4, Article 179 or Clause 4, Article 180 of the Law on Credit Institutions, the commercial bank under special control must complete the determination and submit to the Special Control Board the consolidated business performance results for the accounting period from the date of the most recent audited financial statements to the last day of the month preceding the date the State Bank approves the mandatory transfer plan, in accordance with Vietnamese Accounting Standards, the Accounting Regime, and other relevant laws.

2. Within 20 days from the date on which the State Bank approves the mandatory transfer plan in accordance with Clause 4, Article 179 or Clause 4, Article 180 of the Law on Credit Institutions, the Special Control Board shall complete the determination and report to the State Bank (via the Credit Institutions Supervision Department) the consolidated business performance results of the commercial bank under special control for the accounting period specified in Clause 1 of this Article (including the case where the commercial bank under special control fails to complete the determination of the consolidated business performance results as prescribed in Clause 1 of this Article), and shall propose that the State Bank (via the Credit Institutions Supervision Department) decide on the full reduction of charter capital of the commercial bank subject to mandatory transfer to reduce accumulated losses accordingly, in accordance with Clause 2, Article 183 of the Law on Credit Institutions, in case where the commercial bank under special control has accumulated losses exceeding 100% of the value of its charter capital and reserve funds as stated in the most recent audited financial statements and in the consolidated business performance results of the commercial bank under special control as determined by the Special Control Board pursuant to this Clause.

3. Based on the most recent audited financial statements and the report and proposal of the Special Control Board as specified in Clause 2 of this Article, the State Bank shall decide to reduce in full the charter capital of the commercial bank subject to mandatory transfer in order to reduce accumulated losses accordingly, in the mandatory transfer decision in accordance with Clause 2 and Clause 3, Article 183 of the Law on Credit Institutions. This charter capital amount shall replace the charter capital stated in the establishment and operation license previously granted by the State Bank to the commercial bank under special control.”

3. To amend and supplement Points b and d, Clause 3, Article 10 as follows:

a) To amend and supplement Point b as follows:

“b) Division-level leaders or equivalent positions of the Credit Institutions Supervision Department; the State Bank Inspectorate;”

b) To amend and supplement Point d as follows:

“d) Division-level leaders or equivalent positions of the Supervision and Management Division; the Inspectorate of the State Bank branch where the credit institution under special control is headquartered.”

4. To amend and supplement Point b, Clause 4, Article 10 as follows:

“b) Division-level leaders or equivalent positions of the Supervision and Management Division; the Inspectorate of the State Bank branch where the credit institution under special control is headquartered.”

Article 2. Supplementing, replacing and repealing a number of phrases of Circular No. 39/2024/TT-NHNN dated July 01, 2024, of the Governor of the State Bank of Vietnam, providing the special control of credit institutions

1. To add the phrase “, REDUCTION OF CHARTER CAPITAL” at the end of the title of Chapter II.

2. To replace the phrase “State Bank branches of provinces and centrally-run cities” with the phrase “regional State Bank branches” in Clause 2, Article 3.

3. To replace the phrase “the Banking Supervision Agency” with the phrase “the Credit Institutions Supervision Department” in Clause 3, Article 3; Points a and b, Clause 4, Article 4; Clause 1, Article 8; Clause 1, Article 9; Points d, i and k, Clause 1 and Clause 2, Article 11; Clause 7, Article 12; title of Article 14; Points b and d, Clause 1, Article 16; Clause 6, Article 17 and Clause 2, Article 18.

4. To repeal the phrase “the district level” at Point dd, Clause 3, Article 6.

5. To repeal the phrase “the Chief of the Office, the Chief of the Banking Supervision Agency,” in Article 22.

Article 3. Implementation responsibility

Heads of the units under the State Bank, the Deposit Insurance of Vietnam, the Cooperative Bank of Vietnam, credit institutions under special control, Special Control Boards of the credit institutions under special control shall implement this Circular.

Article 4. Effect

This Circular takes effect from June 6, 2025./.