THE STATE BANK OF VIETNAM | THE SOCIALIST REPUBLIC OF VIETNAM |
No.: 53/2018/TT-NHNN | Hanoi, December 31, 2018 |
CIRCULAR
ON OPERATING NETWORK OF NON-BANK CREDIT INSTITUTIONS
Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on credit institutions dated June 16, 2010 and the Law on amendments to the Law on credit institutions dated November 20, 2017;
Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the request of the Chief of the Bank Supervision and Inspection Agency;
The Governor of the State Bank of Vietnam promulgates a Circular to introduce regulations on operating network of non-bank credit institutions.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides regulations on:
1. Conditions, application and procedures for establishment, termination of operation and dissolution of branches, representative offices and administrative units of a non-bank credit institution.
2. Changes in name/location of a branch, representative office or administrative unit of a non-bank credit institution.
Article 2. Regulated entities
1. Non-bank credit institutions.
2. Organizations and individuals involved in the establishment, termination of operation and dissolution of branches, representative offices or administrative units, or changes in names or locations of branches, representative offices or administrative units of non-bank credit institutions.
Article 3. Interpretation of terms
For the purposes of this Circular, these terms are construed as follows:
1. “non-bank credit institutions” refer to general finance companies, factoring finance companies, consumer finance companies, and finance leasing companies.
2. “operating network of a non-bank credit institution” includes domestic branches, representative offices and administrative units of that non-bank credit institution.
3. “branch” refers to a dependent unit of a non-bank credit institution that has its own seal and performs one or some functions of the non-bank credit institution in accordance with its internal regulations and applicable laws.
4. “representative office” refers to a dependent unit of a non-bank credit institution that has its own seal and performs functions of a representative with the authorization of that non-bank credit institution. A representative office is not allowed to carry out business activities.
5. “administrative unit” refers to a dependent unit of a non-bank credit institution, that has its own seal and performs one or some activities for assisting the business of the non-bank credit institution, including:
a) Do researches and propose banking technological applies to the non-bank credit institution;
b) Organize and provide operational and technical training courses for officials and employees of the non-bank credit institution;
c) Keep database, collect and process information serving the business of the non-bank credit institution;
d) Perform other activities to assist the business of the non-bank credit institution in accordance with applicable laws.
6. “Bank Supervision and Inspection Office” refers to Hanoi City Office or Ho Chi Minh City Office of the Bank Supervision and Inspection Agency as regulated in the Prime Minister’s Decision No. 35/2014/QD-TTg dated June 12, 2014 on defining the functions, tasks, powers and organizational structure of the Bank Supervision and Inspection Agency.
7. “application date” refers to the date specified in the application for establishment of branch/ representative office/ administrative unit of the non-bank credit institution.
Article 4. Power to give approval for operating network of a non-bank credit institution
1. The Governor of the State Bank of Vietnam (hereinafter referred to as “SBV”) shall consider giving approval or refusing to give approval for:
a) the establishment of a branch/ representative office/ administrative unit of a non-bank credit institution;
b) the compulsory termination or dissolution of operation of a branch/ representative office/ administrative unit of a non-bank credit institution.
2. The Director of SBV’s branch in the province where the Bank Supervision and Inspection Office is not established or the Director of the Bank Supervision and Inspection Office shall consider giving approval or refusing to give approval for:
a) changes in the location of the branch of a non-bank credit institution in such province (including changes in the branch's location made before the commencement of its official operation);
b) the voluntary termination of operation or dissolution of the branch of a non-bank credit institution in the province.
Article 5. Rules for preparing and submitting applications and notifications
1. Applications must be presented in Vietnamese. Documents included in an application must be the originals or the copies derived from master registers or certified copies or copies presented together with their originals for verification purpose as regulated by laws. Each application must include the list of application documents.
2. Applications/ notifications of a non-bank credit institution must be signed by its legal representative or authorized representative (hereinafter referred to as "legal representative") and submitted directly or by post to relevant authorities.
If documents included in an application of a non-bank credit institution are signed by its authorized representative, this application must contain the written authorization made in accordance with applicable laws.
Article 6. Regulations on operating network management
1. The non-bank credit institution must formulate the Regulations on operating network management for ensuring safe and effective operations in conformity with applicable laws and managerial capability of each unit of its operating network. The Regulations must include, inter alia, the following contents:
a) Organizational and personnel structure;
b) Operations, scope of operation, accounting mechanism;
c) Risk limit for each business activity or operation imposed on each customer, each group of customers, and all customers of a branch;
d) The headquarters’ mechanism for management and supervision of its network members for ensuring safe and effective operations;
dd) Standards and eligibility requirements to be satisfied by Directors and Deputy Directors of branches, heads of professional divisions, heads of representative offices and administrative units who are required to meet all professional competence and professional ethics requirements same as those to be satisfied by holders of equivalent positions at the headquarters in accordance with internal regulations of the non-bank credit institution and relevant laws.
2. The Regulations must be periodically reviewed in accordance with the non-bank credit institution’s internal regulations and amended or revised (where necessary) for adapting to changes in the network members and market developments.
3. Within 05 business days from the promulgation or modification of the Regulations on operating network management, the non-bank credit institution must submit the Regulations to the SBV (via the Bank Supervision and Inspection Agency), SBV’s branch in the province or city where its headquarters is located.
Chapter II
ESTABLISHMENT OF BRANCHES, REPRESENTATIVE OFFICES AND ADMINISTRATIVE UNITS
Article 7. Requirements for branch establishment
1. A non-bank credit institution that has been operating for at least 12 months (counting from the date of inauguration to the application date) is allowed to establish not more than 03 branches in a fiscal year if it satisfies all of the following requirements:
a) Its chartered capital in December 31 of the year preceding the year of application shall not be lower than the legal capital;
b) It earns profits from business as stated in its audited consolidated and single financial statements of the year preceding the year of application. A non-bank credit institution that applies for establishment of a branch in the second years after its inauguration is not required to meet this requirement;
c) It is not prohibited by a competent authority from expanding its operations at the application date;
d) It does not infringe regulations on prudential ratios for operations of non-bank credit institutions at the application date;
dd) Its bad debt ratio at December 31 of the year preceding the year of application and at the application date shall not exceed 4% of its total outstanding debts or another ratio as decided by the SBV’s Governor in each period;
e) The number of members and structure of the Board of Directors, the Board of Members and the Boards of Controllers must comply with applicable laws at the application date; the General Director (or Director) position is not left vacant;
g) It does not commit any violations against regulations on internal control system, internal auditing, and classification of assets and risk provisions at the application date;
h) It has the Regulations on operating network management as regulated in Article 6 hereof;
i) The scheme for establishment of network members is available.
2. A non-bank credit institution that has been operating for less than 12 months (counting from the date of inauguration to the application date) is allowed to establish not more than 02 branches if it satisfies all of the following requirements:
a) Its chartered capital at the application date shall not be lower than the legal capital;
b) Its bad debt ratio on the date closed to the application date shall not exceed 4% of its total outstanding debts or another ratio as decided by the SBV’s Governor in each period;
c) The requirements set out in Points c, d, e, g, h, i Clause 1 of this Article.
Article 8. Requirements for establishment of representative offices and administrative units
1. A non-bank credit institution that has been operated for at least 12 months (counting from the date of inauguration to the application date) is required to satisfy the requirements specified in Points a, c, e, g, h, i Clause 1 Article 7 hereof.2. A non-bank credit institution that has been operated for less than 12 months (counting from the date of inauguration to the application date) is required to satisfy the requirements specified in Points c, e, g, h, i Clause 1 and Point a Clause 2 Article 7 hereof.
Article 9. Application for approval for establishment of a branch, representative office or administrative unit
An application shall include:
1. The application for the SBV’s approval for establishment of a branch/ representative office/ administrative unit made by the non-bank credit institution by using the form provided in the Appendix enclosed herewith.
2. The resolution on approval for the establishment of a branch/ representative office/ administrative unit made by the Board of Directors, or the Board of Members of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter.
3. The scheme for branch establishment, which includes, inter alia, the following contents:
a) Full name and abbreviated name in Vietnamese language, branch’s address and operations;
b) Reasons for establishing the branch and selected location of the branch;
c) Organizational structure: Organizational structure of the branch, expected holders of key positions (including Director, Deputy Director and heads of professional divisions);
dd) The feasibility study report which includes analysis of business environment, target market, business opportunities and plans for market domination;
dd) The business plan for the first three years, which includes, inter alia, the following contents: Planned balance sheet; income statement; grounds for formulating the business plan and explanations about the capacity to implement the business plan in each year.
4. The scheme for establishment of a representative office/ administrative unit, which includes, inter alia, the following contents:
a) Full name in Vietnamese language and in foreign language (if any); abbreviated name in Vietnamese language and foreign language (if any); address and operations;
b) Reasons and necessity of establishing the representative office/ administrative unit;
c) Expected holders of key positions (including Director, Deputy Director, heads of professional divisions, head of the representative office or administrative unit);
d) The operation plan for the first three years.
Article 10. Procedures for approval for establishment of a branch, representative office or administrative unit
1. Procedures for approval before the commencement of operations:
a) The non-bank credit institution shall prepare an application for the type of its network member unit to be established in accordance with Article 9 hereof, and submit it to the SBV (via the Bank Supervision and Inspection Agency). If the application is insufficient or invalid, within 07 business days from the receipt of the application, the Bank Supervision and Inspection Agency shall request the applicant in writing to modify the application;
b) The applicant is required to modify and complete the application within 30 business days from the date on which it receives the written request from the Bank Supervision and Inspection Agency. Over this time limit, the applicant must submit a new application as regulated herein to the SBV for consideration;
c) If the application for approval for establishment of a branch is submitted, within 05 business days from the receipt of a sufficient application, the Bank Supervision and Inspection Agency must ask for written opinions from the following entities:
(i) The SBV’s branch in the province or city where the non-bank credit institution’s headquarters is located (where the Bank Supervision and Inspection Office is not available) that shall give written opinions about the satisfaction of the non-bank credit institution of the requirements set forth in Article 7 hereof;
(ii) The SBV’s branch in the province or city where the non-bank credit institution’s branch is going to be established for opinions about the necessity of the branch in that province or city;
d) Within 10 business days from the receipt of the written request for opinions from the Bank Supervision and Inspection Agency, the entities mentioned in Point c of this Clause are required to provide written opinions about requested contents;
dd) Within 15 business days from the receipt of sufficient opinions from the entities mentioned in Point c of this Clause or from the receipt of the sufficient application for establishment of the representative office or administrative unit from the non-bank credit institution, the Bank Supervision and Inspection Agency shall request the SBV’s Governor to give approval or refuse to give approval for the establishment of branch, representative office or administrative unit of the non-bank credit institution;
e) Within 60 business days from the receipt of the sufficient application for approval for establishment of a branch or within 45 business days from the receipt of the sufficient application for approval for establishment of a representative office or administrative unit submitted by the non-bank credit institution, the SBV shall give a written approval or refusal to give approval to the non-bank credit institution. If an application is refused, reasons for refusal must be provided in writing;
g) Within 12 months from the date on which the SBV’s Governor gives a written approval for establishment, the non-bank credit institution must commence operations of the established branch, representative office or administrative unit. If the non-bank credit institution fails to commence operations of its branch, representative office or administrative unit within this time limit, the SBV’s written approval shall be implicitly invalid.
2. Commencement of operations of a branch:
a) Requirements for commencement of operations of a branch:
(i) It has the legitimate right to own or use the branch office; the branch office must be adequate for storage of documents, convenient and safe for transactions, ensure safety of assets, be equipped with suitable security system, electrical system and communication system so as to maintain uninterrupted operations of the branch and meet fire requirements;
(ii) The branch office must have a bank vault or safe as regulated by the SBV;
(iii) The branch must have an information technology system maintaining the online connection between the branch and the headquarters; the branch’s information technology system and database must be operated continuously and safely for keeping confidentiality of the branch's operations and serving statistics and reporting tasks;
(iv) The branch must employ adequate and qualified persons holding key positions of the branch, including Director and Deputy Director, and professional staff;
(v) The branch’s Director must meet relevant standards and requirements set forth in Clause 5 Article 50 of the Law on credit institutions and internal regulations of the non-bank credit institution;
b) The non-bank credit institution must submit a report to the SBV (via the Bank Supervision and Inspection Agency), the SBV’s branch of the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available) on its satisfaction of the requirements for commencement of the branch's operations at least 15 business days before the estimated date of commencement of the branch's operations;
c) The non-bank credit institution shall start operations of the branch after it satisfies the requirements set forth in Point a of this Clause, completes all procedures for registration of the branch’s operations in accordance with laws, and publishes information according to Article 11 hereof.
3. Commencement of operations of the representative office or administrative unit:
a) The non-bank credit institution carries out procedures for registration of operations of the representative office or administrative unit in accordance with laws;
b) The non-bank credit institution decides the commencement of operations of its representative office or administrative unit after completing all procedures specified in Point a of this Clause and publishing information according to Article 11 hereof;
c) The non-bank credit institution must give a notification to the SBV (via the Bank Supervision and Inspection Agency), the SBV’s branch in the province or city where the representative office of administrative unit is located (where the Bank Supervision and Inspection Office is not available) at least 15 business days before the commencement of operations of the representative office of administrative unit.
Article 11. Publishing information concerning establishment of branches, representative offices and administrative units
Within 07 business days before the planned date of commencement of operations of the branch, representative office or administrative unit, the non-bank credit institution must publish information concerning the establishment of the branch, representative office or administrative unit on the websites of the SBV and of the non-bank credit institution (if any), and on three consecutive editions of a daily printed newspapers or online newspapers of Vietnam.
Chapter III
CHANGES OF NAMES OR LOCATIONS OF BRANCHES, REPRESENTATIVE OFFICES AND ADMINISTRATIVE UNITS
Article 12. Change of branch’s name
The non-bank credit institution shall decide the change of its branch's name which must be conformable with applicable laws, and submit a notification of such change of its branch’s name to the SBV (via the Bank Supervision and Inspection Agency), and the SBV’s branch in the province or city where the branch office is located within 05 business days from the date on which the non-bank credit institution makes a decision on change of its branch’s name.
Article 13. Change of branch’s location
1. The non-bank credit institution is allowed to change its branch's location within the same province or city where the branch is located provided that the new location of branch must meet the requirements specified in Points a (i), a (ii) and a (iii) Clause 2 Article 10 hereof.
2. An application for approval for change of branch’s location includes:
a) The application form for approval for change of the branch’s location which is made by the non-bank credit institution and includes, inter alia, the following contents: the current location; the location where the branch is going to be moved to, which must meet the requirements specified in Clause 1 of this Article; the plan for relocation of the branch office which must ensure the branch’s uninterrupted operations;
b) The resolution on approval for the change of the branch’s location made by the Board of Members or the Board of Directors of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter.
3. Procedures:
a) The non-bank credit institution shall prepare an application as regulated in Clause 2 of this Article and submit it to the Bank Supervision and Inspection Office or the SBV’s branch in the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available). If the application is insufficient or invalid, within 05 business days from the receipt of the application, the Bank Supervision and Inspection Office or the SBV’s branch shall request the applicant in writing to modify the application.
b) Within 10 business days from the receipt of the sufficient application as regulated in Clause 2 of this Article, the Bank Supervision and Inspection Office or the SBV’s branch in the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available) shall give approval or refuse to give approval for the change of the branch’s location to the applicant. In case of refusal, a written response in which reasons for refusal are indicated shall be provided for the applicant.
4. The non-bank credit institution must submit a report to the Bank Supervision and Inspection Office or the SBV’s branch in the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available) on its satisfaction of the requirements laid down in Clause 1 of this Article at least 15 business days before the estimated date of commencement of operations at the new branch's location.
5. Within 12 months from the date on which the SBV’s branch or the Bank Supervision and Inspection Office gives a written approval, the branch of the non-bank credit institution must carry out its operations at the approved location. Over this time limit, the written approval given by the SBV’s branch or the Bank Supervision and Inspection Office shall be implicitly invalid.
6. If the branch's address is changed because of the change of administrative divisions (the branch's location is not changed), the non-bank credit institution shall request the Bank Supervision and Inspection Office or the SBV’s branch in the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available) in writing to certify the change of the branch’s address. Such written request submitted by the non-bank credit institution must be accompanied by documents proving such change of the branch’s address.
Within 05 business days from the receipt of the written request from the non-bank credit institution, the SBV’s branch or the Bank Supervision and Inspection Office in the province or city where the branch is located shall give a written certification of the branch’s address to the non-bank credit institution.
Article 14. Change of names or locations of representative offices and administrative units
1. The non-bank credit institution shall decide the change of name or location of its representative office or administrative unit in conformity with applicable laws.
2. The non-bank credit institution must send written notification to the SBV (via Bank Supervision and Inspection Agency) and the SBV’s branch in the province or city where the representative office or administrative unit is located of the change of name or location of the representative office or administrative unit within 05 business days from the date on which the non-bank credit institution issues a decision on change of name or location of its representative office or administrative unit.
If the representative office or administrative unit is moved to another province or city, the non-bank credit institution must send written notification of such change to both the SBV’s branch in the province or city where the representative office or administrative unit is previously located and the SBV’s branch in the province or city where the new location of the representative office or administrative unit is established.
Article 15. Information publishing
Within 07 business days from the change of the branch’s name or from the receipt of the written approval for change of the branch’s location from the SBV’s branch or the Bank Supervision and Inspection Office, the non-bank credit institution shall publish information about such changes on the websites of the SBV and of the non-bank credit institution (if any), and on three consecutive editions of a daily printed newspapers or online newspapers of Vietnam.
Chapter IV
TERMINATION OF OPERATION OR DISSOLUTION OF BRANCHES, REPRESENTATIVE OFFICES AND ADMINISTRATIVE UNITS
Article 16. Termination of operation or dissolution of branches, representative offices and administrative units
1. A branch, representative office or administrative unit shall have its operations terminated or shall be dissolved in the following circumstances:
a) Implicit termination of operation or dissolution;
b) Voluntary termination of operation or dissolution; or
c) Compulsory termination of operation or dissolution.
2. The related non-bank credit institution shall:
a) settle issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or administrative unit that has its operation terminated or that is dissolved in accordance with applicable laws;
b) keep documents, vouchers and other papers of the branch, representative office or administrative unit that has its operation terminated or that is dissolved and all documents concerning such termination of operation or dissolution;
c) carry out legal procedures for termination of operation or dissolution of the branch, representative office or administrative unit in accordance with applicable laws.
Article 17. Implicit termination of operation or dissolution of branches, representative offices and administrative units
1. If a non-bank credit institution has its operation terminated or is dissolved, its branches, transaction offices, representative offices and administrative units shall implicitly have their operation terminated or be dissolved.
2. Procedures for implicit termination of operation or dissolution of a branch, representative office or administrative unit shall be carried out in accordance with applicable laws.
Article 18. Voluntary termination of operation or dissolution of branches, representative offices and administrative units
1. An application for approval for voluntary termination of operation or dissolution of a branch includes:
a) The application for approval for termination of operation or dissolution of the branch which is made by the non-bank credit institution and specifies: reasons for termination of operation or dissolution; name and address of the branch having its operation terminated or to be dissolved; and commitments to settle issues concerning assets, rights, obligations and related benefits of the branch having its operation terminated or to be dissolved;
b) The resolution on approval for the termination of operation or dissolution of the branch made by the Board of Directors, or the Board of Members of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter;
c) The plan for settlement of assets, rights, obligations and related benefits of the branch having its operation terminated or to be dissolved.
2. Procedures for voluntary termination of operation or dissolution of a branch:
a) The non-bank credit institution shall prepare an application as regulated in Clause 1 of this Article and submit it to the SBV’s branch in the province or city where the branch is located (if the Bank Supervision and Inspection Office is not available) or the Bank Supervision and Inspection Office in the province or city where the branch is located;
b) Within 45 business days from the receipt of the sufficient application as regulated in Clause 1 of this Article, the SBV’s branch (if the Bank Supervision and Inspection Office is not available) or the Bank Supervision and Inspection Office shall give written approval or refuse to give approval to the applicant. In case of refusal, a written response in which reasons for refusal are indicated shall be provided for the applicant.
3. Within 45 business days from the date on which the SBV’s branch (if the Bank Supervision and Inspection Office is not available) or the Bank Supervision and Inspection Office gives a written approval for termination of operation or dissolution of the branch, the related non-bank credit institution must carry out legal procedures for termination of operation or dissolution of the branch and submit a report to the SBV (via the Bank Supervision and Inspection Agency) and the SBV’s branch in the province or city where the branch is located on the specific date of termination of operation or dissolution of the branch and results thereof.
4. Termination of operation or dissolution of representative offices and administrative units:
Representative offices and administrative units shall have their operations terminated or be dissolved according to decisions made by the related non-bank credit institution.
Within 05 business days from the termination of operation or dissolution of the representative office or administrative unit, the non-bank credit institution must send written notification which indicates reasons and date of termination of operation or dissolution to the SBV (via the Bank Supervision and Inspection Agency), the SBV’s branch in the province or city where the headquarters of the non-bank credit institution is located and the SBV’s branch in the province or city where the representative office or administrative unit is located.
Article 19. Compulsory termination of operation or dissolution of branches, representative offices and administrative units
1. The branch, representative office or administrative unit of a non-bank credit institution shall be subject to the compulsory termination of operation or dissolution if there are evidences that the application for establishment of the branch, representative office or administrative unit fails to meet relevant establishment requirements.
2. In the case mentioned in Clause 1 of this Article, the SBV’s branch in the province or city where the branch, representative office or administrative unit of the non-bank credit institution is located (if the Bank Supervision and Inspection Office is not established) shall submit a written request for approval for compulsory termination of operation or dissolution of the branch, representative office or administrative unit, which must indicate reasons for such compulsory termination of operation or dissolution, to the SBV (via the Bank Supervision and Inspection Agency).
3. Within 15 business days from the receipt of the written request for approval for compulsory termination of operation or dissolution of the branch, representative office or administrative unit of the non-bank credit institution from the SBV’s branch as regulated in Clause 2 of this Article or during the inspection or supervision through which the case mentioned in Clause 1 of this Article is discovered, the Bank Supervision and Inspection Agency shall request the SBV’s Governor to request the related non-bank credit institution in writing to terminate the operation or dissolve its branch, representative office or administrative unit.
4. Within 90 business days from the date on which the SBV sends the written request for termination of operation or dissolution of the branch, representative office or administrative unit to the non-bank credit institution as regulated in Clause 3 of this Article, the non-bank credit institution must complete all procedures for termination of operation or dissolution of the branch, representative office or administrative unit, and submit a report to the SBV (via the Bank Supervision and Inspection Agency) on specific date of termination of operation or dissolution and results thereof.
5. In case of complaints against the SBV’s request for compulsory termination of operation or dissolution of the branch, representative office or administrative unit, the non-bank credit institution shall follow complaint procedures as regulated by law.
Article 20. Publishing information about termination of operation or dissolution of branches, representative offices and administrative units
Within 07 business days from the date of termination of operation or dissolution of the branch, representative office or administrative unit, the non-bank credit institution must post up notices of such operation termination or dissolution at its headquarters and at the location of the related branch, representative office or administrative unit, and publish information concerning such operation termination or dissolution on the websites of the SBV and of the non-bank credit institution (if any), and on three consecutive editions of central and/or local daily printed newspapers or online newspapers of Vietnam. Information to be published includes:
1. Name and address of the branch, representative office or administrative unit that has its operation terminated or is dissolved.
2. Date of termination of operation or dissolution.
3. Responsibility of the non-bank credit institution to settle issues concerning assets, rights, obligations and relevant benefits of the branch, representative office or administrative unit having its operation terminated or dissolved.
Chapter V
IMPLEMENTION ORGANIZATION
Article 21. Responsibility of non-bank credit institutions
Each non-bank credit institution shall:
1. Formulate and submit annual plan for development of its branches, representative offices and administrative units to its competent authority for approval.
2. Assume responsibility before the law for the sufficiency and accuracy of information and documents provided in submitted applications.
3. Implement regulations herein.
Article 22. Responsibility of SBV’s branch in province or city where the non-bank credit institution’s branch, representative office, transaction office or administrative unit is located
1. The SBV’s branch in the province or city where the Bank Supervision and Inspection Office is not established:
a) Receive applications, and consider giving approval or refusing to give approval for the contents specified in Clause 2 Article 4 hereof;
b) Cooperate with the Bank Supervision and Inspection Agency in settling issues concerning the organization and operation of branches, transaction offices, representative offices and administrative units of local non-bank credit institutions;
c) Provide opinions at the request of the Bank Supervision and Inspection Agency as regulated in Point c Clause 1 Article 10 hereof;
d) Submit written requests to the SBV (via the Bank Supervision and Inspection Agency) as regulated in Clause 2 Article 19 hereof;
dd) Receive reports and notifications submitted by non-bank credit institutions in accordance with regulations herein.
2. The SBV’s branch in the province or city where the Bank Supervision and Inspection Office is available:
a) Provide opinions at the request of the Bank Supervision and Inspection Agency within its competence as regulated in Point c (ii) Clause 1 Article 10 hereof;
b) Receive reports and notifications submitted by non-bank credit institutions in accordance with regulations herein.
Article 23. Responsibility of Bank Supervision and Inspection Agency
1. Play the leading role in receiving, appraising and requesting the SBV’s Governor to give approval or refuse to give approval in accordance with regulations laid down in Clause 1 Article 4 and Clause 2 Article 24 hereof.
2. Cooperate with SBV’s branches in provinces or cities in settling issues concerning the organization and operation of branches, transaction offices, representative offices and administrative units of non-bank credit institutions,
3. Receive reports and notifications submitted by non-bank credit institutions in accordance with regulations herein.
Chapter VI
IMPLEMENTATION PROVISIONS
Article 24. Transition
1. Within 24 months from the effective date of this Circular, non-bank credit institutions must review and complete the transformation as regulated in Clause 2 of this Article or terminate operation of their transaction offices as regulated in Clause 3 of this Article.
2. If the requirements laid down in Point a Clause 2 of Article 10 hereof are satisfied, transaction offices shall be transformed into branches. To be specific:
a) The application for approval for transformation from a transaction office into a branch includes:
(i) The application form for the SBV's approval for transformation from a transaction office into a branch, which must specify the satisfaction of the requirements laid down in Point a Clause 2 of Article 10 hereof, and the transformation plan that must ensure the uninterrupted operation as well as rights and legitimate benefits of related organizations and individuals;
(ii) The resolution on approval for the transformation from a transaction office into a branch made by the Board of Directors or the Board of Members of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter;
(iii) Documents proving its satisfaction of the requirements laid down in Point a Clause 2 of Article 10 hereof;
b) Procedures:
(i) The non-bank credit institution shall prepare an application including all required documents as regulated in Point a of this Clause, and submit it to the SBV (via the Bank Supervision and Inspection Agency). If the application is insufficient or invalid, the Bank Supervision and Inspection Agency shall request the applicant in writing to modify the application;
(ii) Within 15 business days from the receipt of a sufficient application as regulated in Point a of this Clause, the SBV shall give a written approval or refusal to the applicant. If an application is refused, reasons for such refusal must be provided in writing;
(iii) The non-bank credit institution shall carry out procedures for registration of the branch's operation in accordance with applicable lawsoft and publish information as regulated in Article 11 hereof.
3. If a transaction office has its operation terminated or is dissolved, the non-bank credit institution must comply with regulations laid down in Clause 2 Article 16, Clause 4 Article 18 and publish information as regulated in Article 20 hereof.
4. Applications for approval for one or some contents prescribed in Article 1 hereof which are sufficiently submitted before the effective date of this Circular and conformable with laws applicable at the submission time shall be processed in accordance with applicable laws or modified in conformity with regulations herein.
Article 25. Effect
1. This Circular comes into force from March 01, 2019.
2. The Decision No. 01/2008/QD-NHNN dated January 09, 2018 by the SBV’s Governor shall be abrogated.
Article 26. Implementation
The Chief of the Office, Chief of the Bank Supervision and Inspection Agency, heads of relevant entities affiliated to the SBV, Directors of the SBV’s branches in provinces or central-affiliated cities, Chairpersons of the Board of Directors, Chairpersons of the Board of Members, and General Directors (Directors) of non-bank credit institutions shall implement this Circular./.
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