Procedure for Approval of Capital Contribution, Share Purchase by Credit Institution

The approval for capital contribution, share purchase of credit institutions shall be carried out in accordance with the following order and procedures:

- The credit institution shall prepare 02 sets of documents and submit to the State Bank of Vietnam. In cases where the documents are incomplete or invalid, within 07 days from the date of receipt of the documents, the Banking Inspection and Supervision Agency shall issue a written request for the credit institution to supplement the documents.- Within 07 days from the date of receipt of the complete and valid documents, the Banking Inspection and Supervision Agency shall send a document accompanied by the dossier to the State Bank for opinions.- Within 10 days from the date of receipt of the written request for opinions of the Banking Inspection and Supervision Agency, the units specified in Clause 2 of this Article shall send their written opinions to the Banking Inspection and Supervision Agency on the contents to be consulted.- Within 14 days from the date of receipt of the opinions from the relevant units, the Banking Inspection and Supervision Agency shall appraise the dossier and submit it to the Governor of the State Bank for consideration and decision on whether to approve or disapprove the capital contribution, share purchase, or conversion of debt into capital as proposed by the credit institution.- Within 45 days from the date of receipt of the complete and valid dossier, the State Bank shall issue a written approval or disapproval of the capital contribution, share purchase, or conversion of debt into capital of the credit institution; in case of disapproval, the State Bank shall issue a written document stating the reason.- Within 12 months from the date of issuance of the written approval by the State Bank, the credit institution must complete the capital contribution, share purchase, or debt conversion into capital contribution. After this period, the State Bank's written approval shall automatically expire.

More details can be found in Circular 51/2018/TT-NHNN, effective from March 1, 2019.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE