CIRCULAR

PRESCRIBING SPECIAL CONTROL OVER 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. 102/2022/ND-CP dated December 12, 2022 prescribing functions, tasks, powers and organizational structure of the State Bank of Vietnam (SBV);

At the request of the Head of the SBV Banking Supervision Agency;

The Governor of the State Bank of Vietnam promulgates a Circular prescribing the special control over credit institutions.

Chapter I

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Article 1. Scope

This Circular introduces regulations on authority to make decisions on special control over credit institutions; forms of special control; special control decisions; notification and disclosure of information on special control; special control duration, extension and termination of special control; composition, required members, structure, operating mechanism, tasks and powers of a special control board; responsibilities of relevant authorities, organizations and individuals.

Article 2. Regulated entities

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

2. Authorities, organizations and individuals involved in special control over credit institutions.

Chapter II

SPECIAL CONTROL, NOTIFICATION AND DISCLOSURE OF INFORMATION ON SPECIAL CONTROL

Article 3. Authority to make decisions on special control over credit institutions

1. The Governor of the State Bank of Vietnam shall consider making decisions on the following issues concerning credit institutions, except people’s credit funds:

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b) Forms of special control;

c) Establishment of special control boards;

d) Duration of special control;

dd) Notification of special control;

e) Disclosure of information on special control;

g) Extension of special control duration;

h) Termination of special control;

i) Other issues within the jurisdiction of the State Bank of Vietnam (hereinafter referred to as “SBV”) as prescribed in the Law on Credit Institutions and this Circular.

2. Director of each SBV’s branch of province or central-affiliated city shall consider making decisions on the following issues concerning people's credit funds that are headquartered in that province or city:

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b) The issues specified in clause 2 Article 163, clauses 4 and 5 Article 166, clause 9 Article 167, clauses 3 and 5 Article 169, clause 3 Article 172, clauses 2, 5 and 6 Article 174, clause 2 Article 176, clauses 3 and 4 Article 178, clauses 2 and 3 Article 187 (except those specified in point c clause 3 Article 3 of this Circular), clause 3 Article 188 (except those specified in point b clause 3 Article 3 of this Circular), clauses 3 and 4 Article 190 of the Law on Credit Institutions;

c) Other issues within the jurisdiction of the SBV’s branch of province or central-affiliated city (hereinafter referred to as “SBV’s provincial branch) as prescribed in this Circular and relevant laws.

3. Director of the SBV’s provincial branch shall submit reports and proposals to the SBV’s Governor (via the SBV Banking Supervision Agency) on the following issues concerning people's credit funds that are headquartered in their province or city:

a) Requesting the Government to issue decisions to apply special measures as prescribed in clause 4 Article 162 of the Law on Credit Institutions;

b) Requesting the Prime Minister of Vietnam to issue decisions on limits on deposit insurance payouts paid to depositors as prescribed in clause 3 Article 188 of the Law on Credit Institutions;

c) Approving the support measures beyond its jurisdiction as prescribed in point i clause 1 Article 171, clause 11 Article 174 and clause 3 Article 187 of the Law on Credit Institutions;

d) Other issues beyond the jurisdiction of the SBV’s provincial branch as prescribed in this Circular and relevant laws.

Article 4. Forms of special control

1. Based on the actual state and level of operational risks of a specific credit institution, the SBV’s Governor or Director of SBV’s provincial branch shall consider making decisions on:

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b) Contents, scope, methods and tasks of operational control specified in the special control decision which must be conformable with the form of special control and the contents prescribed in clause 1 Article 11 of this Circular.

2. Special supervision means a situation in which a credit institution is placed under direct control of SBV through its remote direct control and direction or the on-site inspection by the special control board of all operations of the credit institution that is placed under special control.

3. Comprehensive control means a situation in which a credit institution is placed under direct control of SBV through the on-site direct control and direction by the special control board of daily operations of the credit institution that is placed under special control.

4. The form of special control may be changed as follows:

a) Based on the actual state and level of operational risks of the credit institution that is placed under special control, the special control board shall request the SBV’s Governor (via the SBV Banking Supervision Agency) to change the form of special control over the credit institution placed under special control as prescribed in clause 1 Article 3 of this Circular or request the Director of the SBV’s provincial branch to change the form of special control over the credit institution placed under special control as prescribed in clause 2 Article 3 of this Circular;

b) If the mandatory transfer plan of a commercial bank that is placed under special control has been approved by a competent authority, the special control board shall request the SBV’s Governor (via the SBV Banking Supervision Agency) to change the form of special control if it’s deemed necessary;

c) Within 20 days from their receipt of the request from the special control board as prescribed in point a or b of this clause, the SBV’s Governor or Director of SBV’s provincial branch shall consider issuing a decision to change the form of special control over the credit institution placed under special control within their jurisdiction as prescribed in Article 3 of this Circular.

Article 5. Special control decisions

A special control decision shall, inter alia, include the following contents:

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2. Reasons for placing the credit institution under special control.

3. Duration of special control.

4. Form of special control, contents, scope, methods and tasks of operational control over the credit institution placed under special control.

5. Full name and job title of each member of the special control board, tasks and powers of the special control board, and of its head and other members.

6. Use of SBV’s seal, including seals of SBV’s provincial branches.

7. Conversion of refinancing loans into special loans; conversion of loans granted to people’s credit funds by the cooperative bank into special loans.

8. Other contents.

Article 6. Notification of special control

1. A notice of special control includes one or some of the following contents:

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b) Change in the form of special control;

c) Extension or termination of special control;

d) Written approval of the restructuring plan given by a competent authority;

dd) Other contents.

2. The SBV shall send a written notice of special control over the credit institution placed under special control as prescribed in clause 1 Article 3 of this Circular to one or some of the following entities:

a) The Board of Directors or the Board of Members, the Board of Controllers, General Director (Director) of the credit institution placed under special control;

b) The SBV’s branches of provinces or cities where the credit institution placed under special control is headquartered and where its affiliated units are operating;

c) Deposit Insurance of Vietnam;

d) The People's Committee of province or city where the credit institution placed under special control is headquartered;

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e) Other relevant authorities and organizations.

3. The relevant SBV’s provincial branch shall send a written notice of special control over the credit institution placed under special control as prescribed in clause 2 Article 3 of this Circular to one or some of the following entities:

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

b) SBV’s Governor;

c) Deposit Insurance of Vietnam;

d) Cooperative Bank of Vietnam;

dd) The People's Committee of province, district or commune where the credit institution placed under special control is headquartered;

e) Other relevant authorities and organizations.

4. The SBV’s Governor shall decide specific scope, contents and recipients of the notices of special control prescribed in clauses 1, 2 of this Article and time of notification of special control over the credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular.

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Article 7. Disclosure of information on special control

1. Information on special control over a credit institution to be disclosed shall be one or some of the following:

a) Name of the credit institution placed under special control;

b) Form, duration and termination of special control;

c) Other information.

2. The SBV shall disclose information on special control over credit institutions in one or some of the following forms:

a) Publishing information on the SBV’s website;

b) Publishing information on the website of the credit institution that is placed under special control (if any);

c) Publishing information in at least 03 successive issues of a central newspapers or local newspapers of the area where the credit institution placed under special control is headquartered;

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dd) Disclosing information at the meeting of the General Meeting of Shareholders or the Board of Members or the General Meeting of Members of the credit institution placed under special control.

3. The SBV’s Governor shall decide specific scope, contents and form of disclosure of information on special control as prescribed in clauses 1, 2 of this Article and time of disclosure of information on special control over the credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular for the purposes of ensuring safety of the credit institution system.

4. Directors of SBV’s provincial branches shall decide specific scope, contents and form of disclosure of information on special control as prescribed in clauses 1, 2 of this Article and time of disclosure of information on special control over the credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular for the purposes of ensuring safety of the credit institution system.

Article 8. Extension of special control

1. Based on the operating status of the credit institution that is placed under special control, at least 30 days before the expiry date of the special control, the special control board shall request the SBV’s Governor (via the SBV Banking Supervision Agency) to consider granting extension of the special control over the credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular or request the Director of the relevant SBV’s provincial branch to consider granting extension of special control over the credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular.

2. Within 20 days from their receipt of the request from the special control board as prescribed in clause 1 of this Article, the SBV’s Governor or the Director of the relevant SBV’s provincial branch shall consider issue a decision to extend the special control over the credit institution placed under special control within their jurisdiction as prescribed in Article 3 of this Circular.

Article 9. Termination of special control

1. If a credit institution placed under special control falls in any of the cases specified in Article 168 of the Law on Credit Institutions, the special control board shall request the SBV’s Governor (via the SBV Banking Supervision Agency) to consider issuing a decision to terminate the special control over the credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular or request the Director of the relevant SBV’s provincial branch to consider issuing a decision to terminate the special control over the credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular.

2. Within 20 days from their receipt of the request from the special control board as prescribed in clause 1 of this Article, the SBV’s Governor or the Director of the relevant SBV’s provincial branch shall consider issue a decision to terminate the special control over the credit institution placed under special control within their jurisdiction as prescribed in Article 3 of this Circular.

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Chapter III

COMPOSITION, REQUIRED MEMBERS, STRUCTURE, OPERATING MECHANISM, TASKS AND POWERS OF A SPECIAL CONTROL BOARD

Article 10. Composition, required members, structure and operating mechanism of a special control board

1. A special control board shall be organized applying one of the following models:

a) A special control board with a Head and other members;

b) A special control board with a Head, Deputy Head(s) and other members.

2. Members of a special control board include:

a) Officials, public employees and employees of the SBV, Deposit Insurance of Vietnam, Cooperative Bank of Vietnam (in case of special control over a credit institution as prescribed in clause 2 Article 3 of this Circular), the transferee under the mandatory transfer plan (in case of special control over a credit institution that has a mandatory transfer plan approved by a competent authority), credit institutions other than the one placed under special control, and other regulatory authorities and organizations involved in the special control over the credit institution as appointed or ordered by the SBV or as appointed by regulatory authorities and organizations involved in the special control at the SBV’s request;

b) Experts in finance, banking, accounting, auditing and information technology who are invited or called by the SBV.

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a) Head of a SBV’s Department or holder of equivalent or higher position at another unit affiliated to the SBV;

b) Head of a Department or holder of equivalent or higher position at the SBV Banking Supervision Agency; head of a department or holder of equivalent or higher position at an Office of the SBV Banking Supervision Agency;

c) Director or Deputy Director of the SBV’s branch of the province or city where the credit institution placed under special control is headquartered;

d) Chief Inspector or Deputy Chief Inspector or holder of equivalent position at the SBV’s branch of the province or city where the credit institution placed under special control is headquartered; head of a department or holder of equivalent or higher position at the Inspection and Supervision Department of the SBV - Hanoi City Branch or of the SBV - Ho Chi Minh City Branch.

4. The Head of a special control board over the credit institution prescribed in clause 2 Article 3 of this Circular shall be:

a) Director or Deputy Director of the SBV’s branch of the province or city where the credit institution placed under special control is headquartered;

b) Chief Inspector or Deputy Chief Inspector or holder of equivalent position at the SBV’s branch of the province or city where the credit institution placed under special control is headquartered; head of a department or holder of equivalent or higher position at the Inspection and Supervision Department (if any) of the SBV’s branch of the province or city where the credit institution placed under special control is headquartered.

5. Members of a special control board must not be related persons, as defined in point d clause 24 Article 4 of the Law on Credit Institutions, of members of the Board of Directors, the Board of Members, the Board of Controllers, General Director (or Director), individuals that are majority shareholders or capital contributors of the credit institution placed under special control or individuals that are legal representatives of majority shareholders, owner or capital contributors of the credit institution placed under special control.

6. A special control board shall operate following this mechanism:

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b) The frequency of meetings and mechanisms for information exchange, decision making and consolidation of opinions given by its members shall be decided by its Head and must be appropriate to the form of special control and the current state of the credit institution placed under special control.

7. The SBV’s Governor (for a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the relevant SBV’s provincial branch (for a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular) shall decide the composition, required members, and structure of the special control board which must appropriate to the form of special control and the current state of the credit institution placed under special control.

Article 11. Tasks and powers of a special control board

1. The special control board shall have the tasks and powers prescribed in Article 164 of the Law on Credit Institutions. It shall exercise and perform its powers and tasks through one or some of the following activities:

a) Request the credit institution placed under special control to provide sufficient and accurate information and documents relating to its operations, including:

(i) The facts about its organizational structure, personnel, management, IT system and internal control system;

(ii) The facts about its banking activities and other business operations, including its profits and accumulated losses; its capacity to meet debt obligations as they come due;

(iii) The facts about its assets, collateral, including detailed information relating to bad debts, uncollectible accounts, debts restructured as potentially bad debts, debts sold to VAMC as bad debts yet to be disposed of, and unsettled forgivable interests;

(iv) List of customers (excluding credit institutions and foreign bank branches) to which it extends credit; list of deposit account holders; list of other creditors;

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b) Request the credit institution placed under special control to list all cash and cash equivalents existing on its entire system by adopting the principle of cross check and submit report thereof within 05 days from the date of completion of the listing;

c) Organize the supervision of listing process as prescribed in point b of this Clause in conformity with the facts and operational scale of the credit institution placed under special control;

d) While the restructuring plan is not yet developed or approved by a competent authority, based on the information and documents provided by the credit institution placed under special control as prescribed in points a, b of this clause or information obtained from the independent auditor’s report, inspection report and other information, the special control board shall evaluate the operational status of that credit institution in order to directly implement or request the SBV’s Governor (via the SBV Banking Supervision Agency, for a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the relevant SBV’s provincial branch (for a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular) to implement the controlling measures appropriate to the actual state of that credit institution;

dd) Consider giving approval of some transactions and activities conducted by the credit institution placed under special control as prescribed in the special control decision and other documents issued by the SBV;

e) Request the credit institution placed under special control to submit reports on its business performance with the reporting contents and frequency appropriate to its actual state;

g) Decide the participation in meetings of the Board of Directors, the Board of Members or the Board of Controllers of the credit institution placed under special control and give opinions about contents presented at the meetings in connection with powers and tasks of the special control board;

h) Direct, inspect and control operations of the credit institution placed under special control with a view to preventing acts of hiding, liquidating, pledging, mortgaging or transferring property and others which may cause damage to the credit institution placed under special control;

i) On a periodical basis as specified in the special control decision or where necessary or at the request of the SBV's Governor or Director of the SBV's provincial branch, submit reports to the SBV's Governor (via the SBV Banking Supervision Agency, for a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the relevant SBV’s provincial branch (for a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular) on management, administration, business and investment activities, financial status, liquidation and other issues (if any) of the credit institution placed under special control, and recommendations or proposed solutions thereof (if any); results and difficulties that arise during the implementation of the restructuring plan approved by a competent authority and recommendations or proposed solutions thereof (if any);

k) Submit reports in a timely manner to the SBV's Governor (via the SBV Banking Supervision Agency, for a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the relevant SBV’s provincial branch (for a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular) on unusual activities, potential risks, safety risks and violations against laws committed by the credit institution placed under special control; difficulties that arise during the special control over the credit institution and proposed solutions thereof;

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m) Other contents as prescribed in the Law on Credit Institutions or assigned by the SBV's Governor or Director of SBV's provincial branch.

2. The special control board of the credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular shall provide advice for or request the SBV's Governor (via the SBV Banking Supervision Agency) to:

a) request the Government to issue decisions to apply special measures as prescribed in clause 4 Article 162 of the Law on Credit Institutions;

b) implement the provisions of 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 a people’s credit fund placed under special control shall provide advice for or make proposals to Director of the relevant SVB’s provincial branch on the issues specified in clauses 2 and 3 Article 3 to serve his/her issuance of the decision to place the people’s credit fund under special control, except those in points a, c and clause 1 Article 3 of this Circular, and the special control form.

Article 12. Powers and tasks of Head of special control board

1. Lead and organize the execution and performance of powers and tasks of the special control board as prescribed in the Law on Credit Institutions, provisions herein and the special control decision.

2. Convene and chair meetings of the special control board.

3. Act on behalf of the special control board to sign documents under its authority.

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5. Make decisions on the contents prescribed in Clause 6 Article 10 of this Circular.

6. Direct and supervise the performance of assigned tasks by members of the special control board, including management and retention of documents, and maintenance of confidentiality of information relating to operations of the credit institution placed under special control in accordance with laws and guidelines by the SBV’s Governor (for a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the SBV’s provincial branch (for a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular).

7. Act on behalf of the special control board to, within 30 days from the effective date of the Decision on termination of special control over the credit institution, transfer all documents concerning the credit institution placed under special control to the SBV Banking Supervision Agency (with regard to the Head of a special control board in charge of the credit institution placed under special control as prescribed in clause 1 Article 3 of this Circular) or Director of the SBV's branch of the province or city where the credit institution placed under special control is headquartered (with regard to the Head of a special control board in charge of the credit institution placed under special control as prescribed in clause 2 Article 3 of this Circular).

8. Exercise and perform other rights and tasks as defined in the special control decision.

9. Authorize Deputy Head or another member of the special control board to exercise the powers specified in clauses 2, 3, 6 and 8 of this Article during his/her absence.

10. Assume responsibility before the SBV’s Governor or Director of the SBV's provincial branch and before the law for his/her performance of assigned tasks.

Article 13. Powers and tasks of each member of special control board

1. Perform tasks as assigned or authorized by the Head of the special control board.

2. Punctually report and propose measures to the Head of the special control board for taking actions against unusual activities, potential risks, safety risks and violations against laws committed by the credit institution placed under special control.

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Chapter IV

RESPONSIBILITIES OF RELEVANT AUTHORITIES, ORGANIZATIONS AND INDIVIDUALS

Article 14. Responsibilities of SBV Banking Supervision Agency

1. Submit reports to the SBV's Governor in a timely manner when the credit institution prescribed in clause 1 Article 3 of this Circular is subjected to any of the cases prescribed in clause 1 Article 162 of the Law on Credit Institutions.

2. Provide advice and proposals to the SBV’s Governor for making decisions on the contents prescribed in clause 1 Article 3 of this Circular, except the grant of special loans.

3. Provide advice for the SBV’s Governor about direction and placing of special control over the credit institutions prescribed in clause 1 Article 3 of this Circular.

4. Provide advice and proposals to the SBV’s Governor for making decisions on the contents prescribed in clause 3 Article 3 of this Circular within the ambit of his/her assigned functions and tasks, except the grant of special loans.

5. Act as the contact point for receiving reports, advices and proposals relating to special control over the credit institutions prescribed in clause 1 Article 3 of this Circular, including the contents prescribed in clause 2 Article 11 of this Circular.

6. Give response within its jurisdiction or provide advice and proposals to the SBV’s Governor for response to reports, advices and proposals prescribed in clause 5 of this Article within the ambit of his/her assigned functions and tasks.

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8. Provide information on conditions to be satisfied by credit institutions that give support or receive all debts within the ambit of its assigned functions and tasks at the request of SBV's provincial branches as prescribed in point dd clause 2 Article 16 of this Circular.

9. Receive, manage and keep documents, and maintain confidentiality of information relating to special control over the credit institutions prescribed in clause 1 Article 3 of this Circular in accordance with laws and guidelines by the SBV’s Governor, including documents prescribed in clause 7 Article 12 hereof.

10. Provide advice to the SBV’s Governor about assignment of tasks to relevant units affiliated to the SBV to provide advice or deal with proposals and issues concerning special control over credit institutions within their functions and tasks.

Article 15. Responsibilities of other units affiliated to SBV

1. Appoint their officials to attend special control boards.

2. Provide information on conditions to be satisfied by credit institutions that give support or receive all debts within the ambit of their assigned functions and tasks at the request of SBV's provincial branches as prescribed in point dd clause 2 Article 16 of this Circular.

3. Provide advice or deal with proposals and issues concerning special control over credit institutions within their functions and tasks or as assigned by the SBV’s Governor.

Article 16. Responsibilities of each SBV's provincial branch

1. Regarding a credit institution that is placed under special control as prescribed in clause 1 Article 3 of this Circular:

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b) Perform special control tasks over financially dependent units of the credit institution placed under special control in its province or city as assigned by the SBV’s Governor, and provide advice and proposals to the SBV’s Governor (via the SBV Banking Supervision Agency) to adopt remedial measures within his/her assigned powers and tasks;

c) Take actions within its jurisdiction against the issues concerning financially dependent units of the credit institution placed under special control in its province or city;

d) Cooperate with the SBV Banking Supervision Agency, the special control board and regulatory authorities in its province or city during special control over that credit institution;

dd) Perform other tasks assigned by the SBV’s Governor.

2. Regarding a credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular:

a) Comply with provisions of this Circular;

b) Submit reports to the SBV's Governor in a timely manner when the credit institution is subjected to any of the cases prescribed in clause 1 Article 162 of the Law on Credit Institutions;

c) Receive and take actions within its jurisdiction against the issues concerning the process of special control over that credit institution;

d) Act as the contact point cooperating with regulatory authorities in its province or city in dealing with issues that arise during special control over that credit institution;

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e) Receive, manage and keep documents, and maintain confidentiality of information relating to the special control over that credit institutions in accordance with laws and guidelines by the SBV’s Governor, including those prescribed in clause 7 Article 12 of this Circular;

g) Provide information on the people’s credit fund placed under special control for the Cooperative Bank of Vietnam, and Deposit Insurance of Vietnam to serve their performance of tasks as prescribed in the Law on Credit Institutions and this Circular.

h) Perform other tasks within its jurisdiction.

Article 17. Responsibilities of Cooperative Bank of Vietnam

1. Appoint its officials to join the special control boards in charge of the credit institutions prescribed in clause 2 Article 3 of this Circular.

2. Recommend its officials to the SBV’s provincial branch as Chairperson and members of the Board of Directors; Head and members of the Board of Controllers, Director, Deputy Director and holders of equivalent positions as prescribed in the Charter of the people’s credit fund that is placed under special control at the request of that SBV’s provincial branch.

3. Engage in the assessment of the feasibility of the recovery plan or plan for merger, consolidation or transfer of all stakes, and give opinions about the asset liquidation plan of the people’s credit fund placed under special control at the request of the special control board.

4. Consider deciding to choose the credit institution in charge of supporting the implementation of the recovery plan of the people’s credit fund placed under special control.

5. Cooperate with special control boards in developing complete bankruptcy plans for people’s credit funds placed under special control, and request the SBV to request the Prime Minister to decide limits on deposit insurance payouts paid to depositors on the rule that total deposit insurance payout paid to an individual depositor shall not exceed his/her insured deposit at the people’s credit fund.

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7. Monitor operations of the credit institution that is placed under special control as prescribed in clause 2 Article 3 of this Circular, and provide reports on any unusual operations and proposed solutions for the SBV’s Governor or the SBV’s branch of province or city where that credit institution is headquartered.

Article 18. Responsibilities of Deposit Insurance of Vietnam

1. Appoint its officials to join special control boards in charge of the credit institutions placed under special control that are deposit insurance policyholders.

2. Cooperate with the SBV Banking Supervision Agency, the SBV’s branch of province or city where the credit institution placed under special control that is a deposit insurance policyholder is headquartered and the special control board during the special control over that credit institution.

3. Recommend its officials to the SBV’s provincial branch as Chairperson and members of the Board of Directors; Head and members of the Board of Controllers, Director, Deputy Director and holders of equivalent positions as prescribed in the Charter of the people’s credit fund that is placed under special control at the request of that SBV’s provincial branch.

4. Engage in the assessment of the feasibility of recovery plans or plans for merger, consolidation or transfer of all stakes of people’s credit funds placed under special control at the request of special control boards.

5. Cooperate with special control boards in developing bankruptcy plans of credit institutions that are placed under special control, except the cases specified in clause 6 of this Article.

6. Cooperate with special control boards in developing complete bankruptcy plans for people’s credit funds placed under special control, and request the SBV to request the Prime Minister to decide limits on deposit insurance payouts paid to depositors on the rule that total deposit insurance payout paid to an individual depositor shall not exceed his/her insured deposit at the people’s credit fund.

7. Cooperate with credit institutions placed under special control in making deposit insurance payouts to depositors according to approved bankruptcy plans.

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

2. Assume responsibility before the law and the SBV for the accuracy, timeliness and adequacy of information and documents provided for special control boards.

3. Submit reports to special control boards on any difficulties and risks incurred during the special control process.

Chapter V

IMPLEMENTATION

Article 20. Effect

This Circular comes into force from July 01, 2024 and supersedes the Circular No. 11/2019/TT-NHNN dated August 02, 2019 of the Governor of the State Bank of Vietnam, except provisions of clause 2 Article 21 of this Circular.

Article 21. Transition

1. Special control decisions issued before the effective date of this Circular still remain valid until they are amended or replaced. Any amendment to or replacement of a special control decision that was issued before the effective date of this Circular must comply with provisions of this Circular, except the contents specified in clause 2 of this Article.

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Article 22. Responsibility for implementation

The Chief of Office, Head of SBV Banking Supervision Agency, heads of units affiliated to the SBV, Deposit Insurance of Vietnam, Cooperative Bank of Vietnam, credit institutions placed under special control, and special control boards in charge of such credit institutions placed under special control are responsible for the implementation of this Circular./.

PP. GOVERNOR
DEPUTY GOVERNOR




Doan Thai Son