CIRCULAR

AMENDING CIRCULAR NO. 50/2018/TT-NHNN DATED DECEMBER 31, 2018 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM PRESCRIBING PROCEDURES AND APPLICATION FOR APPROVAL FOR CHANGES OF COMMERCIAL BANKS AND FOREIGN BANK BRANCHES

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 providing 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 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. 50/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam prescribing procedures and application for approval for changes of commercial banks and foreign bank branches.

Article 1. Amendments to Circular No. 50/2018/TT-NHNN

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 “4. The application shall be submitted either directly at the single-window service section or by post to the State Bank of Vietnam or the authorized provincial branch of the State Bank of Vietnam (hereinafter referred to as “SBV”).”

2. Clause 1 Article 4 is amended as follows:

 “1. The SBVs’ Governor shall consider giving approval for the changes specified in Clause 1 Article 1 of this Circular, of commercial banks or foreign bank branches (FBBs) of large scale according to decision of the SBV’s Governor; relocation of a FBB to a province or city other than the one where it is located.”

3. Clause 4 Article 6 is amended as follows:

 “4. Within a maximum duration of 15 working days from the receipt of the application prescribed in Clause 3 of this Article, SBV shall issue a decision to modify the headquarters address of the commercial bank or location of the FBB specified in its license. If an application is refused, SBV shall give a written response indicating reasons for such refusal.”

4. Clause 5 Article 7 is amended as follows:

 “5. Within a maximum duration of 15 working days from the receipt of the application prescribed in Clause 4 of this Article, SBV shall issue a decision to modify the headquarters address of the commercial bank or location of the FBB specified in its license. If an application is refused, SBV shall give a written response indicating reasons for such refusal.” 

5. Point a(iii) Clause 1 Article 12 is amended as follows:

 “(iii) In case the increase in charter capital of a joint-stock commercial bank results in establishment of a new majority shareholder or change of the status of a majority shareholder into an ordinary shareholder or share purchase by a majority shareholder, the application shall also indicate name of the shareholder, the shareholder’s holding ratio before and after the joint-stock commercial bank increases its charter capital;”

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 “3. If the purchase of shares helps the purchaser become a majority shareholder or a majority shareholder purchases shares in case of increase in charter capital of a joint-stock commercial bank, the application and procedures in Article 12 of this Circular shall apply.

If the purchase of shares helps the purchaser become a majority shareholder or a majority shareholder purchases shares in case of increase in charter capital of a joint-stock commercial bank but such purchaser or majority shareholder is not included in the list of shareholders eligible to purchase shares of the joint-stock commercial bank prescribed in Point d Clause 1 Article 12 of this Circular, which has been approved by SBV, the provisions of Clause 1, Clause 2 of this Article and Clause 2 Article 15 of this Circular shall apply. SBV’s written approval for the share purchase is also an integral part of the written approval for increase in charter capital.”

7. Clause 1 Article 18 is amended as follows:

 “1. Take charge of receiving, appraising, getting opinions from relevant units affiliated to SBV (where necessary), consolidating and submitting reports to SBV’s Governor for considering and giving approval for the changes specified in Articles 5 through 17 within its jurisdiction prescribed in Clause 1 Article 4 of this Circular; within 03 working days from the day on which SBV receives the application from a commercial bank or FBB as prescribed in Clause 3 Article 6 or Clause 4 Article 7 of this Circular, the SBV Banking Supervision Agency shall request the SBV’s branch of the province or city to which the commercial bank or FBB will be relocated to verify the satisfaction of headquarters or office requirements by the commercial bank or FBB.”

8. Clause 3 and Clause 4 are added to Article 19 as follows:

 “3. Within 07 working days from the receipt of the request from the SBV Banking Supervision Agency, the SBV’s branch of the province or city to which the commercial bank or FBB will be relocated shall check and verify the satisfaction of headquarters or office requirements by the commercial bank or FBB, and give its written opinions to the SBV Banking Supervision Agency.

4. Check and verify the satisfaction of office requirements by FBBs before deciding to modify locations of FBBs in their licenses within its jurisdiction prescribed in Clause 2 Article 4 of this Circular.”

Article 2. Transition

Applications for modification of headquarters addresses or locations of commercial banks or FBBs in their licenses submitted before the effective date of this Circular shall be considered and processed in accordance with regulations of laws in force at the submission time.

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The Chief of Office, Head of SBV Banking Supervision Agency, heads of units affiliated to SBV, commercial banks and FBBs shall organize the implementation of this Circular.

Article 4. Implementation

This Circular comes into force from August 15, 2022./.

PP. GOVERNOR
DEPUTY GOVERNOR




Doan Thai Son