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

CIRCULAR

Providing the special control of credit institutions

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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. 102/2022/ND-CP dated December 12, 2022 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 providing the special control of credit institutions.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides: competence to make decision in special control of credit institutions; form of special control; special control decisions; notification and disclosure of information on special control; period of special control, extension of special control period, termination of special control; composition, number of members, structure, operational mechanism, tasks and powers of Special Control Boards; responsibilities of relevant agencies, organizations, individuals.

Article 2. Subjects of application

1. Credit institutions include: commercial banks, cooperative banks, non-bank credit institutions, microfinance institutions, people’s credit funds.

2. Agencies, organizations and individuals involved in the special control of credit institutions.

Chapter II

SPECIAL CONTROL, NOTIFICATION AND DISCLOSURE OF INFORMATION ON SPECIAL CONTROL

Article 3. Competence to make decision in special control of credit institutions

1. The Governor of the State Bank of Vietnam shall consider and decide the following contents for credit institutions, except for people’s credit funds:

a) The placement of credit institutions falling into the cases prescribed in Clause 1 Article 162 of the Law on Credit Institutions under special control;

b) The form of special control;

c) The establishment of Special Control Boards;

d) The special control period;

dd) The notification of special control;

e) The disclosure of special control information;

g) The extension of the special control period;

h) The termination of special control;

i) Other contents falling under the competence of the State Bank of Vietnam (hereinafter referred to as the State Bank) specified in the Law on Credit Institutions and this Circular.

2. Directors of State Bank branches in provinces and centrally-run cities shall consider and decide on the following contents for people's credit funds headquartered in their localities:

a) Contents specified at Points a, b, c, d, dd, e, g and h, Clause 1 of this Article;

b) The contents specified in Clause 2 Article 163, Clause 4 and Clause 5 Article 166, Clause 9 Article 167, Clause 3 and Clause 5 Article 169, Clause 3 Article 172, Clause 2, 5 and 6 Article 174, Clause 2 Article 176, Clause 3 and Clause 4 Article 178, Clauses 2 and 3 Article 187 (except for the contents specified at Point c, Clause 3, Article 3 of this Circular),  Clause 3 Article 188 (except for the contents specified at Point b, Clause 3, Article 3 of this Circular), Clauses 3 and 4 Article 190 of the Law on Credit Institutions;

c) Other contents falling under the competence of the State Bank branches in provinces and centrally-run cities (hereinafter referred to as the State Bank branches) specified in this Circular and relevant laws.

3. Directors of the State Bank branches shall report and propose to the Governor of the State Bank (via the Banking Supervision Agency) the following contents toward people's credit funds headquartered in their localities:

a) Submitting to the Government for decision on the application of special measures specified in Clause 4, Article 162 of the Law on Credit Institutions;

b) Submitting to the Prime Minister for decision on deposit insurance payment limits for depositors specified in Clause 3, Article 188 of the Law on Credit Institutions;

c) Approving support measures beyond their competence specified at Point i Clause 1 Article 171, Clause 11 Article 174 and Clause 3 Article 187 of the Law on Credit Institutions;

d) Other contents beyond the competence of the State Bank's branches specified in this Circular and relevant laws.

Article 4. Forms of special control

1. Based on the actual situation and level of risk in operation of a credit institution, the State Bank Governor or director of the State Bank branch shall consider and decide on:

a) The placement of the credit institution under special control in the form of special supervision or comprehensive control;

b) The contents, scope, measures and activities to control operations, which shall be stated in the special control decision, in conformity with the form of special control and the provisions of Clause 1, Article 11 of this Circular.

2. Special supervision means the placement of a credit institution under the direct control of the State Bank through the Special Control Board’s distance direct control and direction, and on-spot inspection of operations of the credit institution under special control.

3. Comprehensive control means the placement of a credit institution under the direct control of the State Bank through direction and on-spot direct control by the Special Control Board of day-to-day operations of the credit institution under special control.

4. The change of the form of special control is conducted as follows:

a) Based on the actual situation of and level of risk in operation of the credit institution under special control, the Special Control Board shall propose the State Bank Governor (via the Banking Supervision Agency) to change the form of special control, for the credit institutions prescribed in Clause 1, Article 3 of this Circular, or propose the Director of the State Bank branch to change the form of special control over the credit institution under special control as prescribed in Clause 2, Article 3 of this Circular;

b) In case a commercial bank under special control has a compulsory transfer plan approved by a competent authority, the Special Control Board shall propose the State Bank Governor (via the Banking Supervision Agency) to change the form of special control if it deems necessary;

c) Within 20 days after receiving the proposal of the Special Control Board prescribed at Point a and b of this Clause, the State Bank Governor or Director of the State Bank branch shall consider and decide to change the form of special control applied to the credit institution according to his/her competence as prescribed in Article 3 of this Circular.

Article 5. Special control decisions

A special control decision must have the following contents:

1. The name of the credit institution under special control.

2. The reasons for the placement of the credit institution under special control.

3. The special control period.

4. The form of special control; contents, scope, measures and activities to control operations of the credit institution under special control.

5. Full name and title of each member of the Special Control Board, tasks and powers of the Special Control Board, Head of the Special Control Board and other members of the Special Control Board.

6. The use of the State Bank’s seal, including the seal of the State Bank branch.

7. The conversion of refinanced loans into special loans; the conversion of loans of people's credit funds at cooperative banks into special loans.

8. Other contents.

Article 6. Notification of special control

1. A notice of special control must comprise one or several of the following contents:

a) The special control decision;

b) The change of the form of special control;

c) The extension or termination of special control;

d) A competent authority’s approval of the restructuring plan;

dd) Other contents.

2. The State Bank shall send written notices of special control of credit institutions under special control specified in Clause 1, Article 3 of this Circular to one or several of the following subjects:

a) The Board of Directors or the Members’ Council, the Control Board, the General Director (Director) of the credit institution under special control;

b) The State Bank branch where the credit institution under special control is headquartered and the State Bank branch(es) where the credit institution’s dependent unit(s) is(are) operating;

c) The Deposit Insurance of Vietnam;

d) The provincial-level People’s Committee where the credit institution under special control is headquartered;

dd) The Ministry of Finance (in case the credit institution under special control is a listed company; company having registered for securities trading; State enterprise, subsidiary company or affiliate company of an insurance firm or finance-insurance group; credit institution under special control has a subsidiary company or an affiliated company operating in the field of securities or insurance);

e) Other related agencies and organizations.

3. The State Bank branch shall send a written notice of special control of the credit institution under special control specified in Clause 2, Article 3 of this Circular to one or several of the following subjects:

a) The Board of Directors, the Control Board, the General Director (Director) of the credit institution under special control;

b) The State Bank Governor;

c) The Deposit Insurance of Vietnam;

d) The Cooperative Bank of Vietnam;

dd) The provincial-, district-, or commune-level People’s Committee where the credit institution under special control is headquartered;

e) Other related agencies and organizations.

4. The State Bank Governor shall decide on the scope and contents of notification and recipients of notices of special control prescribed in Clauses 1 and 2 of this Article and time of notification of special control for the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular.

5. Directors of State Bank branches shall decide on the scope and contents of notification and recipients of notices of special control prescribed in Clauses 1 and 3 of this Article and time of notification of special control for the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular.

Article 7. Disclosure of special control information

1. Information on special control of credit institutions shall be disclosed including one or several of the following information:

a) Name of the credit institution under special control;

b) The form of special control, special control period and termination of special control;

c) Other information.

2. The State Bank shall announce information on special control of credit institutions via one or several of the following forms:

a) Posting on the website of the State Bank;

b) Posting on the website of the credit institution under special control (if any);

c) Publishing in the central or local newspaper where the credit institution under special control is headquartered in at least 03 consecutive issues;

d) Disclosing at a press conference;

dd) Announcing at the Shareholders’ General Meeting or Members’ General Meeting or before the Members’ Council of the credit institution under special control.

3. The State Bank Governor shall decide on the scope, contents and form of disclosure of information on special control under Clauses 1 and 2 of this Article and the time of disclosure of information on special control of the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular in conformity with the objective of ensuring the safety of the credit institution system.

4. Directors of State Bank branches shall decide on the scope, contents and form of disclosure of information on special control under Clauses 1 and 2 of this Article and the time of disclosure of information on special control of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular in conformity with the objective of ensuring the safety of the credit institution system.

Article 8. Extension of special control period

1. Based on the actual situation of operation of a credit institution under special control, at least 30 days before the special control period expires, the Special Control Board shall propose the State Bank Governor (via the Banking Supervision Agency) to consider and decide to extend the period of special control, for the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular, or propose the Director of the State Bank branch to consider and decide to extend the period of special control, for the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular.

2. Within 20 days after receiving the proposal of the Special Control Board prescribed in Clause 1 of this Article, the State Bank Governor or the Director of the State Bank branch shall consider and decide to extend the period of special control of the credit institution under special control according to his/her competence prescribed in Article 3 of this Circular.

Article 9. Termination of special control

1. When a credit institution under special control falls into one of the cases prescribed in Article 168 of the Law on Credit Institutions, the Special Control Board shall propose the State Bank Governor (via the Banking Supervision Agency) to consider and decide to terminate special control of the credit institutions under special control prescribed in Clause 1 Article 3 of this Circular, or propose the Director of the State Bank branch to consider and decide to terminate special control of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular.

2. Within 20 days from the date of receipt of the proposal of the Special Control Board specified in Clause 1 of this Article, the State Bank Governor or the Director of the State Bank branch shall consider and decide to terminate the special control of the credit institution under special control according to his/her competence specified in Article 3 of this Circular.

3. Credit institutions under special control may terminate their special control from the effective date of the Decision on termination of special control.

Chapter III

COMPOSITION, NUMBER OF MEMBERS, STRUCTURE, OPERATIONAL MECHANISM, TASKS AND POWERS OF A SPECIAL CONTROL BOARD

Article 10. Composition, number of members, structure and operational mechanism of a Special Control Board

1. The composition and structure of the Special Control Board shall be organized according to one of the following two models:

a) The head of the Special Control Board and other members;

b) The Head of the Special Control Board, Deputy Head of the Special Control Board, and other members.

2. Members of the Special Control Board must be the following subjects:

a) Cadres, public employees, civil servants or employees of the State Bank, the Deposit Insurance of Vietnam, the Cooperative Bank of Vietnam (in case of special control of the credit institutions prescribed in Clause 2, Article 3 of this Circular), the compulsory transfer recipient (in case of special control over the commercial bank that has a compulsory transfer plan approved by the competent authority), credit institutions other than credit institutions under special control, other agencies and organizations related to the special control of credit institutions appointed or requisitioned by the State Bank or appointed by agencies and organizations related to the special control of credit institutions at the request of the State Bank;

b) Experts in the fields of finance, banking, accounting, audit, and information technology, who are invited or solicited by the State Bank.

3. The Head of the Special Control Board of a credit institution specified in Clause 1, Article 3 of this Circular must be one of the following subjects:

a) A departmental leader or holder of an equivalent or higher title in units of the State Bank;

b) A departmental leader or holder of an equivalent or higher title of the Banking Supervision Agency; division-level leaders or equivalent titles or higher of the Banking Supervision Departments of the Banking Supervision Agency;

c) Directors and Deputy Directors of the State Bank branches where the credit institutions under special control are headquartered;

d) The Chief Inspector or a Deputy Chief Inspector or holder of an equivalent title of the State Bank branch where the credit institution under special control is headquartered; division-level leaders or equivalent titles or higher of the Banking Supervision Department of State Bank - Hanoi Branch, the Banking Supervision Department of State Bank - Ho Chi Minh City Branch.

4. The head of the Special Control Board of a credit institution prescribed in Clause 2, Article 3 of this Circular must be one of the following subjects:

a) The Director or a Deputy Director of the State Bank branch of where the credit institution under special control is headquartered;

b) The Chief Inspector or a Deputy Chief Inspector or holder of an equivalent title of the State Bank branch where the credit institution under special control is headquartered; division-level leaders or equivalent titles or higher of the Banking Supervision Department of State Bank branches (if any) where the credit institutions under special control are headquartered.

5. Members of the Special Control Board must not be related persons specified at Point d, Clause 24, Article 4 of the Law on Credit Institutions of members of the Board of Directors, members of the Members’ Council, members of the Control Board, General Director (Director), individuals who are major shareholders, capital contributors of credit institutions under special control or individuals who are legal representatives of major shareholders, owners and capital contributors of credit institutions under special control.

6. Operational mechanism of the Special Control Board:

a) The Special Control Board shall work on a collegial basis and apply the personal accountability regime in conformity with the contents and characteristics of the to-be-handled matters;

b) The frequency of meetings, mechanisms of information exchange, decision making and summarization of opinions of members shall be decided by the Head of the Special Control Board in conformity with the form of special control and actual situation of the credit institution under special control.

7. The State Bank Governor (for credit institutions under special control specified in Clause 1, Article 3 of this Circular), Directors of the State Bank branches (for credit institutions under special control specified in Clause 2, Article 3 of this Circular) shall decide on the composition, number of members and structure of the Special Control Board in accordance with the form of special control and the actual situation of the credit institution under special control.

Article 11. Tasks and powers of Special Control Board

1. A Special Control Board shall perform the tasks and exercise the powers prescribed in Article 164 of the Law on Credit Institutions. The Special Control Board shall perform its tasks and exercise its powers through one or several of the following activities:

a) Requesting the credit institution under special control to provide the information, documents and dossiers relating to its operation in an adequate, accurate and prompt manner, including information, documents and dossiers on:

(i) The actual situation of the organization, personnel, administration, governance, information technology system and internal control system;

(ii) The actual situation of banking activities and other business activities, including accumulated profits and losses of credit institutions; ability to pay due debt obligations;

(iii) The actual state of assets and security assets, clearly reporting the state of non-performing loans, bad receivables, restructured loans showing the latent risk of becoming non-performing loans, non-performing loans sold to the Vietnam Asset Management Single-Member Limited Liability Company (VAMC) and not yet handled, and accrued interests to be refunded in accordance with law but not yet refunded;

(iv) The list of customers (excluding credit institutions and foreign bank branches) extended with credit; list of money depositors (organizations or individuals); and list of other creditors;

(v) Other information serving the performance of tasks by the Special Control Board.

b) Requesting the credit institution under special control to inventory cash items and cash equivalents available in the system on the principle of cross inspection and supervision and report the result within 05 days after completing the inventory;

c) Organizing the supervision of the inventory process prescribed at Point b of this Clause in conformity with the actual situation and scope of operation of the credit institution under special control;

d) In the period when there is no plan on restructuring or such plan of a credit institution under special control is not yet approved by a competent authority, on the basis of information, documents and dossiers provided by the credit institution under special control specified at Point a, b of this Clause or information from independent audit reports, inspection conclusions and other sources, the Special Control Board shall evaluate actual situation of the credit institution under special control so as to proactively apply or propose the State Bank Governor (via the Banking Supervision Agency, for the Special Control Board of credit institutions under special control specified in Clause 1, Article 3 of this Circular) or the Director of the State Bank branch (for the Special Control Board of the credit institution under special control specified in Clause 2, Article 3 of this Circular) to apply appropriate measures in conformity with the actual situation of the credit institution under special control;

dd) Giving approval before the credit institution under special control conducts a number of transactions and activities according to the provisions of the Decision on special control and other documents of the State Bank;

e) Requesting the credit institution under special control to report on its operational results according to the content and frequency suitable to the actual situation of the credit institution under special control;

g) Deciding to attend meetings of the Board of Directors, Members’ Council or Control Board of the credit institution under special control and give opinions on issues raised at these meetings and relevant to the Special Control Board’s powers and tasks;

h) Directing, inspecting, supervising and controlling operations of the credit institution under special control in order to prevent the hindering, dispersal, pledge, mortgage and transfer of assets and other acts that may cause damage to the credit institution under special control;

i) Reporting, periodically as prescribed in the special control decision or when necessary or requested by the State Bank Governor or director of the State Bank branch, to the State Bank Governor (via the Banking Supervision Agency, for the Special Control Boards of the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular) or the Director of the State Bank branch, (for the Special Control Boards of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular), on the governance, administration, operation, business, investment, finance, liquidation and other matters (if any) of the credit institution under special control and propose handling measures (if any); results, difficulties and problems in the process of implementation of the approved restructuring plan and propose handling measures (if any);

k) Timely reporting to the State Bank Governor (via the Banking Supervision Agency, for the Special Control Boards of the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular), or the director of the State Bank branch (for the special control boards of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular), on abnormal developments, latent risks, possibility of losing safety and violations of the credit institution under special control; difficulties and problems arising in the course of exercising special control of the credit institution and propose handling measures;

l) Promptly notifying the credit institution under special control of information and direction of competent authorities concerning the operation of, and plan on restructuring, the credit institution;

m) Other tasks as prescribed in the Law on Credit Institutions or assigned by the State Bank Governor or the Director of the State Bank branch.

2. The Special Control Board of the credit institution under special control specified in Clause 1, Article 3 of this Circular shall advise and propose to the State Bank Governor (through the Banking Supervision Agency) the following contents:

a) Submitting to the Government for the decision on the application of special measures specified in Clause 4, Article 162 of the Law on Credit Institutions;

b) Implementing Points b, c and d, Clause 2, Article 163, Clauses 4 and 5, Article 166 of the Law on Credit Institutions.

3. The Special Control Board of the people's credit fund under special control shall advise and propose the Director of the State Bank branch on the contents specified in Clause 2 and Clause 3, Article 3, except for Points a, c and d, Clause 1, Article 3 of this Circular and except for advising and proposing forms of special control to issue the decision on placing people's credit funds under special control.

Article 12. Rights and obligations of the Head of Special Control Board

1. Leading and organizing the performance of the tasks, powers and work of the powers of the Special Control Board specified in the Law on Credit Institutions, this Circular and the special control decision.

2. Convening and chairing meetings of the Special Control Board.

3. Signing documents falling within the competence of the Special Control Board on behalf of the Special Control Board.

4. Assigning tasks to members of the Special Control Board.

5. Deciding on the contents prescribed in Clause 6, Article 10 of this Circular.

6. Directing and supervising the performance of tasks by members of the Special Control Board, including the management and storage of documents and dossiers, confidentiality of information relating to operations of the credit institution under special control as prescribed by law and directed by the State Bank Governor (for the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular) or the Director of the State Bank branch (for the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular).

7. Within 30 days after the decision on termination of special control of the credit institution under special control takes effect, on behalf of the Special Control Board, to hand over all documents and dossiers relating to the exercise of special control of the credit institution to the Banking Supervision Agency (for the Heads of the Special Control Boards of the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular) or the State Bank branch where the credit institution under special control is headquartered (for the heads of the Special Control Boards of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular)

8. Other rights and tasks assigned in the Decision on special control.

9. Authorizing the Deputy Head of the Special Control Board or other members of the Special Control Board to exercise the rights specified in Clauses 2, 3, 6 and 8 of this Article during their absence.

10. Being held responsible before the State Bank Governor or the Director of the State Bank branch and before law for the performance of assigned tasks.

Article 13. Rights and obligations of members of the Special Control Board

1. Performing tasks assigned or authorized by the Head of the Special Control Board.

2. Promptly reporting to the Head of the Special Control Board on abnormal issues, latent risks, possibility of losing safety and violations of the credit institution under special control and propose handling measures.

3. Being held responsible before the Head of the Special Control Board and before law for the performance of their assigned tasks.

Chapter IV

RESPONSIBILITIES OF RELEVANT AGENCIES, ORGANIZATIONS AND INDIVIDUALS

Article 14. Responsibilities of the Banking Supervision Agency

1. Timely reporting to the State Bank Governor when the credit institutions prescribed in Clause 1, Article 3 of this Circular all into one of the cases prescribed in Clause 1, Article 162 of the Law on Credit Institutions.

2. Advising and proposing the State Bank Governor to decide on the contents prescribed in Clause 1, Article 3 of this Circular, except for special loans.

3. Advising the State Bank Governor to direct and implement special control over credit institutions specified in Clause 1, Article 3 of this Circular.

4. Advising the State Bank Governor to decide the contents as prescribed in Clause 3, Article 3 of this Circular which fall within the ambit of its functions and tasks, except for the contents of special loans.

5. Acting as the focal point in receiving reports, proposals and recommendations related to special control of the credit institutions prescribed in Clause 1, Article 3 of this Circular, including also the contents prescribed in Clause 2, Article 11 of this Circular.

6. Handling according to its competence or advising and proposing the State Bank Governor to handle reports, advice, proposals and recommendations specified in Clause 5 of this Article within the ambit of its functions and tasks.

7. Advising and proposing the State Bank Governor to implement the provisions in Points b, c and d, Clause 2, Article 163; Clauses 4 and 5, Article 166 of the Law on Credit Institutions, for credit institutions specified in Clause 1, Article 3 of this Circular.

8. Providing information about the conditions for supporting credit institutions, credit institutions receiving all debt obligations according to their assigned functions and tasks at the request of the State Bank branches specified at Point dd, Clause 2, Article 16 of this Circular.

9. Receiving, managing and storing documents and dossiers and ensure confidentiality of information relating to special control of the credit institutions prescribed in Clause 1, Article 3 of this Circular as prescribed by law and directed by the State Bank Governor, including also the documents and dossiers prescribed in Clause 7, Article 12 of this Circular.

10. Advising the State Bank Governor to assign related units of the State Bank to advise on and handle proposals, recommendations and contents related to special control of credit institutions which fall within the ambit of the functions and tasks of these units.

Article 15. Responsibilities of other units of the State Bank

1. Appointing participants to the Special Control Board.

2. Providing information about the conditions for supporting credit institutions, credit institutions receiving all debt obligations according to their assigned functions and tasks at the request of the State Bank branches specified at Point dd, Clause 2, Article 16 of this Circular.

3. Advising and handling proposals, recommendations and contents related to the special control of credit institutions under the functions and tasks of units or as assigned by the Governor of the State Bank.

Article 16. Responsibilities of the State Bank branches

1. For the credit institutions under special control prescribed in Clause 1, Article 3 of this Circular:

a) Appointing their personnels to join the Special Control Boards;

b) Performing jobs related to the exercise of special control of dependent units of credit institutions under special control in their localities as assigned by the State Bank Governor and advise and propose the State Bank Governor (via the Banking Supervision Agency) to apply handling measures according to their assigned competence and tasks;

c) Handling according to their competence the matters related to units of credit institutions under special control in their localities;

d) Coordinating with the Banking Supervision Agency, Special Control Boards and state management agencies in their localities in the course of exercising special control of credit institutions;

dd) Performing other tasks assigned by the State Bank Governor.

2. For the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular:

a) Performing the contents specified in this Circular;

b) Promptly reporting to the State Bank Governor when the credit institutions fall into one of the cases prescribed in Clause 1, Article 162 of the Law on Credit Institutions;

c) Receiving and handling according to their competence on the matters related to special control of credit institutions;

d) Acting as the focal point in coordinating with state management agencies in the locality to handle issues arising in the course of exercising of special control of credit institutions;

dd) Requesting the supporting credit institution, the credit institution receiving all debt obligations and relevant units of the State Bank to provide information on conditions for the supporting credit institution and the credit institution receiving all debt obligations as prescribed in Article 173, Clause 4 Article 187 of the Law on Credit Institutions;

e) Receiving, managing and storing documents and dossiers and ensure confidentiality of information relating to special control of credit institutions as prescribed by law and directed by the State Bank Governor, including also the documents and dossiers prescribed in Clause 7, Article 12 of this Circular;

g) Providing information related to the people's credit fund under special control to the Vietnam Cooperative Bank and the Vietnam Deposit Insurance to perform their tasks as prescribed in the Law on Credit Institutions and this Circular;

h) Performing other tasks according to their competence.

Article 17. Responsibilities of the Cooperative Bank of Vietnam

1. Appointing its personnels to join Special Control Boards of the credit institutions prescribed in Clause 2, Article 3 of this Circular.

2. Appointing its personnels for the State Bank branches to appoint the Chairman and other members of the Board of Directors; Heads and other members of the Control Board; Directors, Deputy Directors and equivalent titles as prescribed in the Charter of the people's credit fund under special control at the request of the State Bank's branches.

3. Participating in the feasibility assessment of the recovery plan, the plan for merger, consolidation and transfer of the entire contributed capital and giving opinions on the plan for liquidation of assets of the people's credit fund under special control on the basis of the proposal of the Special Control Board.

4. Considering and deciding that the credit institution shall support the implementation of the plan to recover the people's credit fund under special control.

5. Coordinating with the Special Control Board in formulating and improving the bankruptcy plan of the people's credit fund under special control and proposing the State Bank to submit to the Prime Minister for the decision on the limit of deposit insurance payment for depositors, maximum amount equivalent to the amount of deposits of insured individuals at the people's credit fund.

6. Coordinating with the Banking Supervision Agency and State Bank branches of the localities where the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular are headquartered and Special Control Boards in the course of exercising special control of credit institutions.

7. To monitor developments and operations of the credit institutions under special control prescribed in Clause 2, Article 3 of this Circular, report and propose handling measures (if any) to the State Bank Governor or directors of the State Bank branches of the localities where the credit institutions are headquartered).

Article 18. Responsibilities of the Deposit Insurance of Vietnam

1. Appointing its personnels to join The Special Control Boards of credit institutions under special control being deposit insurance participants.

2. Coordinating with the Banking Supervision Agency, State Bank branches of the localities where credit institutions under special control being deposit insurance participants are headquartered, and Special Control Boards in the course of exercising special control of credit institutions.

3. Appointing personnels for the State Bank branches to appoint the Chairman and other members of the Board of Directors; Heads and other members of the Control Board; Directors, Deputy Directors and equivalent titles as prescribed in the Charter of the people's credit fund under special control at the request of the State Bank branches.

4. Participating in assessing the feasibility of recovery plans, mergers, consolidation plans, and transfer of all contributed capital of the people's credit fund under special control on the basis of the proposal of the Special Control Board.

5. Coordinating with the Special Control Board in formulating a plan for bankruptcy of a credit institution under special control, except for the case specified in Clause 6 of this Article.

6. Coordinating with the Special Control Board in formulating and finalizing the plan for bankruptcy of the people's credit fund under special control and propose the State Bank to submit to the Prime Minister for the decision on the limit of deposit insurance payment for depositors, maximum amount equivalent to the amount of deposits of insured individuals at the people's credit fund.

7. Coordinating with credit institutions under special control in paying deposit insurance to depositors under the approved bankruptcy plans.

Article 19. Responsibilities of credit institutions under special control, owners, capital contributors, shareholders, the Board of Directors, the Members’ Council, Control Boards, General Directors (Directors) of credit institutions under special control

1. Implementing the provisions of Article 165 Law on Credit Institutions and this Circular.

2. Being held responsible before law and the State Bank for the accuracy, promptness and adequacy of information, documents and dossiers provided to the Special Control Boards.

3. Reporting to the Special Control Boards on the difficulties, problems and risks arising during the process of special control.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20. Effect

This Circular takes effect on July 1, 2024 and replaces the State Bank Governor’s Circular No. 11/2019/TT-NHNN dated August 2, 2019 providing the special control of credit institutions, except for the case specified in Clause 2, Article 21 of this Circular.

Article 21. Transitional provisions

1. Special control decisions issued before the effective date of this Circular shall continue to be implemented until they are amended, supplemented or replaced. The amendment, supplementation and replacement of special control decisions issued before the effective date of this Circular must comply with the provisions of this Circular, except for the contents specified in Clause 2 of this Article.

2. For credit institutions under special control in the cases specified in Clause 9, Article 210 of the Law on Credit Institutions, special control contents related to the adjustment of policies, formulation and approval of restructuring plan shall continue to comply with the State Bank Governor’s Circular No. 11/2019/TT-NHNN dated August 2, 2019 providing the special control of credit institutions.

Article 22. Responsibility of implementation organization

The Chief of the Office, the Chief of the Banking Supervision Agency, and heads of the units of 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 be responsible for organizing the implementation of this Circular./.