Vietnam: Has there been Circular 06/2022/TT-NHNN amending Circular 50/2018/TT-NHNN on changing the location of commercial banks, foreign bank branches?
Vietnam: What are the amended provisions of Circular 50/2018/TT-NHNN?
According to Article 1 of Circular 06/2022/TT-NHNN (amended Circular 50/2018/TT-NHNN) as follows:
"Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN
1. Amend and supplement Clause 4, Article 3 as follows:
“4. Dossier shall be submitted directly at the single-window department or via postal service to the State Bank of Vietnam or the branches of State Bank in provinces and cities (hereinafter collectively referred to as the State Bank). "
2. To amend and supplement Clause 1, Article 4 as follows:
"1. The Governor of the State Bank shall approve the changes specified in Clause 1, Article 1 of this Circular for commercial banks and large-scale foreign bank branches under the decision of the Governor of the State Bank; content of changing the location of the head office of the foreign bank branch other than the province or city where the branch of foreign bank is located.”
3. To amend and supplement Clause 4, Article 6 as follows:
“4. Within 15 working days from the date of receipt of the written request specified in Clause 3 of this Article, the State Bank shall issue a decision to amend the location of the commercial bank's head office, the location of its head office. of a foreign bank branch at the License. In case of failure to amend or supplement the License, the State Bank shall reply in writing and clearly state the reason.”
4. To amend and supplement Clause 5, Article 7 as follows:
“5. Within 15 working days from the date of receipt of the written request specified in Clause 4 of this Article, the State Bank shall issue a decision to amend the location of the commercial bank's head office, the location of its head office. of a foreign bank branch at the License. In case of failure to amend or supplement the License, the State Bank shall reply in writing and clearly state the reason.”
5. To amend and supplement Point a (iii) Clause 1 Article 12 as follows:
“(iii) In case a joint-stock commercial bank increases its charter capital resulting in the formation of a major shareholder or a major shareholder becoming an ordinary shareholder or a major shareholder purchasing shares, the written request must include the following information: the following information: name of shareholders, percentage of shares owned before and expected after the joint-stock commercial bank increases charter capital;”
6. To amend and supplement Clause 3, Article 17 as follows:
“3. The purchase of shares by an organization or individual leads to that organization or individual becoming a major shareholder or buying shares of a major shareholder in case the joint-stock commercial bank increases its charter capital, documents and submissions. order and procedures shall comply with the provisions of Article 12 of this Circular.
The purchase of shares by an organization or individual leads to that organization or individual becoming a major shareholder or buying shares of a major shareholder in case the joint-stock commercial bank increases the charter capital that the organization or individual holds. If such individual or major shareholder is not on the list of shareholders purchasing shares of a joint-stock commercial bank at Point d, Clause 1, Article 12 of this Circular, approved by the State Bank, the provisions of Clause 1, Article 12 of this Circular shall apply Clause 2 of this Article and Clause 2, Article 15 of this Circular. The State Bank's written approval for this share purchase is an integral part of the written approval to increase charter capital.”
7. To amend and supplement Clause 1, Article 18 as follows:
"1. The focal point for receiving, appraising and collecting opinions from relevant units of the State Bank (if necessary), summarizing and submitting to the Governor of the State Bank for consideration and approval of changes at Articles 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 according to the competence specified in Clause 1, Article 4 of this Circular; within 03 working days from the date the State Bank receives the document from the commercial bank or foreign bank's branch as prescribed in Clause 3, Article 6 and Clause 4, Article 7 of this Circular, the Bank supervision and inspection request the State Bank branch in the province or city where the commercial bank is expected to locate its head office, the foreign bank's branch is expected to be located to check the conditions of the head office of the commercial bank, the head office of the foreign bank's branch is expected to be located in the locality.”
8. To add Clauses 3 and 4 to Article 19 as follows:
“3. Within 07 working days from the date of receipt of a written request from the Banking Inspection and Supervision Agency, the State Bank's branch in the province or city where the commercial bank is expected to locate head office and branches of the foreign bank to which its head office is to be located shall inspect the full satisfaction of the conditions of the commercial bank's head office, the head office of the foreign bank's branch expected to be located in the locality; give written opinions to the Banking Inspection and Supervision Agency.
4. Check the satisfaction of the conditions for the head office of the foreign bank's branch to be located in the locality before a decision is made to amend the location of the head office of the foreign bank's branch in the License according to the license. Jurisdiction rights specified in Clause 2, Article 4 of this Circular.”
Vietnam: Has there been Circular 06/2022/TT-NHNN amending Circular 50/2018/TT-NHNN on changing the location of commercial banks, foreign bank branches? (Image from the internet)
When will Circular 06/2022/TT-NHNN be effective in Vietnam?
According to the provisions of Article 4 of Circular 06/2022/TT-NHNN stipulating:
"Article 4. Terms of Implementation
This Circular takes effect from August 15, 2022.”
How to forward the documents submitted before August 15, 2022 in Vietnam?
According to the provisions of Article 2 of Circular 06/2022/TT-NHNN stipulating:
"Article 2. Transitional provisions
The written request for modification of the location of the commercial bank's head office or foreign bank's branch office in the License submitted before the effective date of this Circular may continue to be considered and handled. as prescribed by law at the time of application submission.
Article 3. Implementation organization
Chief of Office, Chief Inspector, bank supervisor, heads of units of the State Bank of Vietnam, commercial banks, foreign bank branches are responsible for the implementation of this Circular."
Thus, from August 15, 2022, there was Circular 06/2022/TT-NHNN amending Circular 50/2018/TT-NHNN on changing locations of commercial banks and foreign bank branches.
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