CIRCULAR

PROVIDING AMENDMENTS TO CIRCULAR NO. 05/2018/TT-NHNN DATED MARCH 12, 2018 OF GOVERNOR OF THE STATE BANK OF VIETNAM PRESCRIBING APPLICATION AND PROCEDURES FOR APPROVAL OF CHANGES AND RECOMMENDED PERSONNEL LISTS OF CREDIT INSTITUTIONS THAT ARE COOPERATIVES

Pursuant to the Law on Credits Institutions dated June 16, 2010;

Pursuant to the Law on amendments to the Law on Credit Institutions dated November 20, 2017;

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;

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

The Governor of the State Bank of Vietnam promulgates a Circular providing amendments to the Circular No. 05/2018/TT-NHNN dated March 12, 2018 of the Governor of the State Bank of Vietnam prescribing application and procedures for approval of changes and recommended personnel lists of credit institutions that are cooperatives (hereinafter referred to as the “Circular No. 05/2018/TT-NHNN”).

Article 1. Amendments to Circular No. 05/2018/TT-NHNN

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“2. The Director of the SBV’s branch of the province or city where a people’s credit fund is headquartered shall consider giving approval for changes and recommended personnel list of that people’s credit fund as prescribed in Clauses 1, 2 Article 1 of this Circular.”

2. Article 4 is amended as follows:

“Article 4. Rules for preparing and submitting applications, and receiving application processing results

1. The application for approval of changes and recommended personnel list of a credit institution that is a cooperative submitted to the SBV or a SBV’s provincial branch (hereinafter referred to as “SBV”) must bear the signature of its lawful representative. In case the application is signed by an authorized representative, it must be accompanied with a written authorization duly made in accordance with regulations of law.

2. The application shall be prepared in Vietnamese language.

3. The application shall be submitted adopting one of the following methods:

a) Direct submission at the SBV’s single-window section;

b) By post;

c) Online submission through the National public service portal or the SBV’s public service portal with respect to changes and recommended personnel applications specified in Articles 5, 6, 7, 9 and 11 of this Circular. If the National public service portal or the SBV’s public service portal failed or encountered a problem, and thus is unable to receive and exchange electronic information, access, sending, receipt, exchange and response to information, and return of application processing results will be made by post or directly at the SBV’s single-window section.

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5. The application shall be submitted to the following authority:

a) The application of a cooperative bank shall be submitted to SBV (via SBV Banking Supervision Agency);

b) The application of a people’s credit fund shall be submitted to the SBV’s branch of province or city where it is headquartered (hereinafter referred to as “SBV’s branch”).

6. Written request for application modification, written response, written approval or decision to modify the license of the SBV shall be made either in physical copy or electronic copy (in respect of changes and recommended personnel lists specified in Articles 5, 6, 7, 9 and 12 of this Circular).”

3. Article 5 is amended as follows:

“Article 5. Renaming

1. An application for approval of renaming includes:

a) The application form made according to the form in Appendix No. 01 enclosed herewith;

b) The resolution on approval of renaming issued by the general meeting of members.

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a) The credit institution that is a cooperative shall prepare an application as prescribed in Clause 1 of this Article and submit it to the SBV. If an application is inadequate, the SBV shall request the applicant in writing to complete its application within 03 working days from the receipt of the application;

b) Within 15 days from the receipt of an adequate and valid application, the SBV shall issue a decision to modify the license regarding renaming of the credit institution that is a cooperative. If an application is refused, the SBV shall provide written reasons for such refusal.”

4. Clause 1, Clause 4 and Clause 5 Article 6 are amended as follows:

“1. An application for approval of relocation includes:

a) The application form made according to the form in Appendix No. 02 enclosed herewith;

b) The resolution on approval of relocation of the head office issued by the general meeting of members;

c) Documents and instruments proving that the credit institution that is a cooperative is entitled to use or has the lawful ownership of the head office in the new location."

“4. At least 15 days before the credit institution that is a cooperative officially operates at the new location, it shall notify the SBV in writing of its expected date of operation at this new location. The credit institution that is a cooperative is not allowed to operate at the new location if its new head office does not meet the requirements set out in the application.

5. In case of change in its address where its head office is not relocated, the credit institution that is a cooperative shall send a written application for approval of change in the head office’s address which is made using the form in Appendix No. 03 enclosed herewith to the SBV.

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5. Point a and Point b Clause 1 Article 7 are amended as follows:

“1. An application for approval of changes in contents/scope of operation includes:

a) The application form made according to the form in Appendix No. 04 enclosed herewith;

b) The resolution on approval of changes in contents/scope of operation issued by the general meeting of members;”

6. Clause 1 and Clause 2 Article 9 are amended as follows:

“1. An application for approval of change in the charter capital includes:

a) The application form made according to the form in Appendix No. 05 enclosed herewith;

b) The plan for increase in charter capital which shall, inter alia, include the following contents:

(i) Funding sources for increasing the charter capital;

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c) The plan for decrease in charter capital which shall, inter alia, include the following contents:

(i) Funding sources for making additional contributions to the charter capital (if any);

(ii) Funding sources for refund of contributed capital to its members and level of satisfaction of refund requirements;

(iii) Expected date of completion of decrease in charter capital;

d) The Resolution issued by the general meeting of members which shall, inter alia, include the following contents:

(i) Change in the charter capital;

(ii) Approval of the list of new members or removal of termination of membership at the people’s credit fund; decision on exclusion of a member;

In case of application for approval of decrease in the charter capital, the new charter capital must comply with regulations of law on legal capital and the credit institution that is a cooperative must have a plan for satisfaction of prudential ratio requirements in its operation;

dd) The list of capital contributors to whom their contributed capital will be refunded in the year which is made using the form in Appendix No. 06 enclosed herewith.

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a) The credit institution that is a cooperative shall prepare an application as prescribed in Clause 1 of this Article and submit it to the SBV. If an application is inadequate, the SBV shall request the applicant in writing to complete its application within 03 working days from the receipt of the application;

b) Within 20 working days from the receipt of a valid application:

 (i) In case of increase in charter capital, the SBV shall issue a decision to modify the license regarding change in charter capital of the credit institution that is a cooperative;

 (ii) In case decrease in charter capital, the SBV shall issue a written approval of decrease in charter capital of the credit institution that is a cooperative. The credit institution that is a cooperative shall only implement its plan for decrease in charter capital after obtaining the SBV’s approval;

(iii) If an application is refused, the SBV shall give written reasons for refusal.”

7. Article 11 is amended as follows:

“Article 11. Application for approval of recommended personnel list

An application for approval of recommended personnel list includes:
1. The application form made using the form in Appendix No. 07 enclosed herewith.

2. The resolution on approval of the recommended personnel list issued by the Board of Directors of the credit institution that is a cooperative, which must include its commitment that the recommended persons meet relevant standards and requirements as prescribed in the Law on Credit Institutions, regulations of relevant laws and its charter.

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4. Criminal records of recommended persons, including information about all convictions (including expunged convictions and unspent convictions).

The criminal record must be issued by a competent authority within 06 months prior to the date of application.

5. The declaration of related parties of recommended persons made using the form in Appendix No. 09 enclosed herewith.

6. Qualifications and certificates of recommended persons that prove their satisfaction of standards and eligibility requirements set out by the SBV. Any qualification and certificates granted by foreign training institutions must be recognized by Vietnamese competent authorities in accordance with regulations of relevant law.”

8. Article 12 is amended as follows:

“Article 12. Procedures for approval of recommended personnel list

1. At least 30 days before the planned date of meeting of the general meeting of members or the planned date in which the Board of Directors shall carry out appointment (including employment) of General Director (Director), the credit institution that is a cooperative shall prepare an application as prescribed in Article 11 of this Circular and send it to the SBV.

The SBV shall obtain necessary information from the National population database when considering and verifying information on residence. If such information is not available on the National population database, the SBV is entitled to request the credit institution that is a cooperative to provide written certification of information on residence of its recommended persons issued by competent authorities in accordance with regulations of law.

2. If an application is inadequate, the SBV shall request the applicant in writing to complete its application within 03 working days from the receipt of the application.

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9. Clause 6 is added to Article 14 as follows:

“6. Cooperate with the Information Technology Department in instructing and settling issues concerning cooperative banks that arise during the application receipt and return of processing result through the National public service portal and the SBV’s public service portal in respect of the services specified in Point c Clause 3 and Clause 6 Article 4 of this Circular.”

10. Clause 7 is added to Article 15 as follows:

“7. Cooperate with the Information Technology Department in instructing and settling issues concerning local people’s credit funds that arise during the application receipt and return of processing result through the National public service portal and the SBV’s public service portal in respect of the services specified in Point c Clause 3 and Clause 6 Article 4 of this Circular.”

11. Article 16a is added as follows:

“Article 16a. Responsibilities of the Information Technology Department

1. Act as a contact point and cooperate with the SBV Banking Supervision Agency and SBV’s branches in receiving applications and returning application processing results through the National public service portal and the SBV’s public service portal in respect of the services specified in Point c Clause 3 and Clause 6 Article 4 of this Circular.

2. Deal with any technical issues concerning online public services that arise during the provision of such services.”

12. Point a(i) Clause 2 and Point b Clause 3 Article 16 are amended as follows:

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“(i) The number of persons to be elected as members of the Board of Directors and Board of Controllers, including the number of full-time members of the Board of Controllers;”

b) Point b Clause 3 is amended as follows:

“b) Within 10 working days from the date of election or appointment of the Chairperson and other members of the Board of Directors, the Head and other members of Board of Controllers, and its General Director (or Director), the credit institution that is a cooperative shall notify and provide the SBV with the recommended personnel list made using the form in Appendix No. 10 enclosed herewith. To be specific:

i) A cooperative bank shall notify and send the list to the SBV Banking Supervision Agency;

ii) A people’s credit fund shall notify and send the list to the relevant SBV’s branch.”

Article 2. Abrogation of some Appendixes enclosed with Circular No. 05/2018/TT-NHNN

Appendix No. 02 and Appendix No. 03 enclosed with the Circular No. 05/2018/TT-NHNN dated March 12, 2018 of the Governor of the State Bank of Vietnam are abrogated.

Article 3. Responsibility for implementation

The Chief of Office, Head of SBV Banking Supervision Agency, heads of units affiliated to the SBV, and credit institutions that are cooperatives shall organize the implementation of this Circular.

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1. This Circular comes into force from March 01, 2023.

2. Provisions on online submission of applications through the National public service portal or the SBV’s public service portal, and written request for application modification, response, approval or decision to modify license issued by the SBV in electronic copy in Point c Clause 3 and Clause 6 Article 4 of the Circular No. 05/2018/TT-NHNN (as amended in Clause 2 Article 1 of this Circular) shall apply from September 01, 2023.

3. Clauses 1, 2 and 4 Article 3, Appendix No. 02 and Appendix No. 03 enclosed with the Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam are abrogated.

PP. GOVERNOR
DEPUTY GOVERNOR




Dao Minh Tu