From August 15, 2022, what are the competencies of the State Bank of Vietnam to check the condition for foreign bank branches planning to be located in Vietnam?
- From August 15, 2022, the conditions of the head office of foreign bank branch to be checked by the State Bank of Vietnam for establishing in Vietnam?
- How to amend regulations on responsibilities of the Banking Supervision Agency in Vietnam?
- What are the regulations on Banking Supervision Agency and the State Bank of Vietnam?
From August 15, 2022, the conditions of the head office of foreign bank branch to be checked by the State Bank of Vietnam for establishing in Vietnam?
According to current regulations in Article 19 of Circular 50/2018/TT-NHNN stipulating the responsibilities of State Bank branches in provinces and cities as follows:
"Article 19. Responsibilities of State Bank branches of provinces and cities
1. Receive applications and grant approval for changes specified in Articles 5, 6, 8, 9, 10 and 14 within their power prescribed in Clause 2 Article 4 of this Circular.
2. Take charge of receiving reports on the changes submitted by commercial banks as prescribed in this Circular within its power specified in Clause 2 Article 4 of this Circular."
Amendment of responsibilities of State Bank branches in provinces and cities in Clause 8, Article 1 of Circular 06/2022/TT-NHNN as follows:
"Adding Clauses 3 and 4 to Article 19 as follows:
+ Within 07 working days from the date of receiving the written request from the Banking Inspection and Supervision Agency, the State Bank branch in the province or city where the head offices of commercial bank, the foreign bank branches are expected to locate shall inspect the conditions of the head offices of a commercial bank, the foreign bank branches expected to be located in the locality; give written opinions to the Banking Inspection and Supervision Agency.
+ Check the conditions for the head office of the foreign bank branch located in the area before a decision issuance to amend the location of the head office of the foreign bank branch in the License according to its competence specified in Clause 2, Article 4 of this Circular.”
From August 15, 2022, what are the competencies of the State Bank of Vietnam to check the condition for foreign bank branches planning to be located in Vietnam? (Image from the internet)
How to amend regulations on responsibilities of the Banking Supervision Agency in Vietnam?
According to current regulations in Article 18 of Circular 50/2018/TT-NHNN stipulating the responsibilities of the Banking Supervision Agency.
"Article 18. Responsibilities of the Banking Supervision Agency
1. Take charge of receiving, appraising, consulting relevant units affiliated to the State Bank (if necessary), consolidating and submitting the changes specified in Articles 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17 within its power specified in Clause 1 Article 4 of this Circular to the Governor of the State Bank for consideration.
2. Submit the change and written opinions of the People’s Committee of the province or central-affiliated city about approval for the change specified in Article 7 of this Circular to the Governor of the State Bank for approval.
3. Take charge of receiving reports on the changes submitted by commercial banks and FBBs as prescribed in this Circular within its power specified in Clause 1 Article 4 of this Circular.
4. Take charge of requesting the Governor of the State Bank to decide to approve changes of large-scale FBBs as prescribed in Clause 1 Article 4 of this Circular.
According to Clause 7 Article 1 of Circular 06/2022/TT-NHNN amending Circular 50/2018/TT-NHNN as follows:
- To amend and supplement Clause 1, Article 18 as follows:
+ Take charge of receiving, appraising, consulting relevant units affiliated to the State Bank (if necessary), consolidating and submitting the changes specified in Articles 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17 within its power specified in Clause 1 Article 4 of this Circular to the Governor of the State Bank for consideration; within 03 working days from the date the State Bank of Vietnam receives the document from the commercial bank or foreign bank branch as prescribed in Clause 3, Article 6 and Clause 4, Article 7 of this Circular.
+ The Banking Supervision Agency shall request the State Bank branch in the province or city where the commercial bank is expected to locate its head office, and the foreign bank 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 branch is expected to be located in the locality.
Since when have the revised regulations on the competence of the Banking
What are the regulations on Banking Supervision Agency and the State Bank of Vietnam?
According to Articles 2 and 4 of Circular 06/2022/TT-NHNN stipulating as follows:
"Transitional Regulations:
- The written request for modification of the location of the commercial bank's head office or foreign bank branch office in the License submitted before the effective date of this Circular may continue to be considered and handled. according to the provisions of law at the time of application submission.
- Terms enforcement
+ This Circular takes effect from August 15, 2022."
Thus, from August 15, 2022, the State Bank of Vietnam is responsible for checking the full compliance the conditions that the head office of the foreign bank branch is expected to be located in the locality before the decision to amend the location of the foreign bank branch's head office in the License submitted according to the prescribed competence.
Circular 06/2022/TT-NHNN takes effect from August 15, 2022.
LawNet
