Vietnam: Regulations on re-purchase of shares of non-bank credit institutions

17:10, 30/12/2015

This is one of the important contents specified in Circular No. 30/2015/TT-NHNN providing regulations on issuance of licenses, organization and operation of non-bank credit institutions that was issued on December 25, 2015 by the State Bank of Vietnam.

According to Circular No. 30/2015/TT-NHNN of the State Bank of Vietnam, the re-purchase of shares at the request of shareholders or under decision of joint-stock non-bank credit institutions is prescribed as follows:

- Re-purchase of shares from shareholders of joint-stock non-bank credit institutions should ensure full compliance with laws.

- Joint-stock non-bank credit institutions shall be permitted to re-purchase shares from the shareholders if they ensure that adequacy ratio in banking activities, actual value of charter capital is not smaller than level of legal capital after payments for re-purchase of all shares are completely made; in case re-purchase of shares results in a decrease in charter capital of non-bank credit institutions, a written approval by the State Bank should be obtained.

- Sequence, procedures and applications for re-purchase of shares that result in decrease in charter capital of joint-stock non-bank credit institutions are instructed by the State Bank.

View more details at Circular No. 30/2015/TT-NHNN of the State Bank of Vietnam, effective from February 08, 2016.

- Khanh Chi -

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