Hanoi-Vietnam: Application for approval for capital contribution to other enterprises by credit institutions

19:55, 10/07/2024

The State Bank of Vietnam signed for promulgating Circular No. 51/2018/TT-NHNN on December 31, 2018 prescribing conditions, necessary documents, order and procedures for approving the contribution of capital to and purchase of shares of credit institutions.

The credit institution shall prepare and send 02 sets of applications to the State Bank of Vietnam to request approval for the capital contribution to and purchase of shares of other enterprises as prescribed in point b, clause 1, Article 1 of Circular 51/2018/TT-NHNN. The application includes:

- The components of the application as stipulated in points a, b, d, đ clause 1 Article 51/2018/TT-NHNN;

- The scheme of the credit institution regarding capital contribution and share purchase, which at least includes the contents specified in points c(i), c(ii), c(iii), c(iv), c(v), c(vi), c(vii), c(viii), c(xi), c(xii), c(xiii) clause 1 Article 51/2018/TT-NHNN and the following contents:

- The capital adequacy ratio within 24 months preceding the month in which the application is submitted and at the date of completion of the capital contribution or purchase of shares with the SBV’s approval;
- The capital contribution or share purchase ratio within 24 months preceding the month in which the application is submitted and at the date of completion of the capital contribution or purchase of shares with the SBV’s approval;
- The maximum ratio of short-term funds used for granting medium- and long-term loans within 24 months preceding the month in which the application is submitted.

See the full text of the regulation at Circular 51/2018/TT-NHNN effective from March 1, 2019.

- Thanh Lam -

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