Modifying the order of relocation of headquarters of commercial bank and relocation of foreign branch bank to another province or city from August 15, 2022?
- What are the current regulations of Vietnam on the relocation of headquarters of commercial banks and relocation of foreign branch banks to another province or city?
- From August 15, 2022, amend the order of relocation of headquarters of commercial bank and relocation of foreign branch bank to another province or city in Vietnam?
- What is the application file for relocating the head office of the commercial bank, and the location of the foreign bank's branch in the same province?
What are the current regulations of Vietnam on the relocation of headquarters of commercial banks and relocation of foreign branch banks to another province or city?
Article 7 of Circular 50/2018/TT-NHNN stipulates the location of the headquarters of the commercial bank and the relocation of the foreign branch bank (FBB) to another province or city where the commercial bank is located. Head office, branch of a foreign bank is located:
“Article 7. Relocation of headquarters of commercial bank and relocation of FBB to another province or city where commercial bank’s headquarters is located or FBB is located
1. An application includes:
a) In case of the commercial banks: The documents specified in Clause 1 Article 6 of this Circular.
b) In case of the FBB:
(i) The documents specified in Clause 1 Article 6 of this Circular;
(ii) A business plan for the first 03 years of operation, which contains at least: forecasted demands for banking services at the new location; expected business strategy and changes in business strategy (if any); expected income in the first 03 years of operating at the new location and relevant descriptions.
2. Procedures for granting approval:
a) The commercial bank or FBB shall submit an application to the State Bank. If the application is unsatisfactory, within 07 working days from the receipt of the application, the State Bank shall request the commercial bank or FBB in writing to complete it.
b) Within 25 working days from the receipt of the satisfactory application, the State Bank shall grant a written approval for relocation of headquarters of the commercial bank or relocation of the FBB. In case of rejection of the application, the State Bank shall respond and provide explanation in writing.
3. The State Bank’s written approval shall be valid for 12 months from the date on which it is signed.
4. At least 30 working days before the expected date of operating at the approved location, the commercial bank or FBB shall submit an application form for amendment to the License regarding the relocation of commercial bank’s headquarters or relocation of FBB, specifying the date of starting to operate at the approved location and its compliance with all requirements of a headquarters as prescribed by law.
5. Within 15 working days from the receipt of the application form specified in Clause 4 of this Article, the State Bank shall decide to amend the License regarding the relocation of commercial bank’s headquarters or relocation of FBB.”
Modifying the order of relocation of headquarters of commercial bank and relocation of foreign branch bank to another province or city from August 15, 2022?
From August 15, 2022, amend the order of relocation of headquarters of commercial bank and relocation of foreign branch bank to another province or city in Vietnam?
According to Clause 4, Article 1 of Circular 06/2022/TT-NHNN (amending and supplementing Clause 5, Article 7 of Circular 50/2018/TT-NHNN):
“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 headquarters of commercial bank and relocation of foreign branch bank to another province or city 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.”
What is the application file for relocating the head office of the commercial bank, and the location of the foreign bank's branch in the same province?
Article 6 of Circular 50/2018/TT-NHNN stipulates:
"Article 6. Relocation of headquarters of commercial bank and relocation of FBB within the same province or city where commercial bank’s headquarters is located or FBB is located
1. An application includes:
a) An application form, which contains at least:
(i) Current location;
(ii) New location;
(iii) Reasons for relocation;
(iv) A plan to install equipment at the new headquarters which satisfies the requirements of a headquarters in accordance with regulations of law;
(v) A headquarters relocation plan, which is aimed at ensuring continuous operation;
b) A resolution or decision on approval for headquarters relocation of the General meeting of shareholders in case of a joint stock commercial bank, a resolution or decision on approval for headquarters relocation of the Board of Members in case of a multi-member limited liability commercial bank, an owner’s decision on approval for headquarters relocation in case of a single member limited liability commercial bank; a parent bank’s written approval for relocation of FBB in Vietnam.
c) Documents proving the commercial bank or FBB has or will have the right to legally use the headquarters at its new location."
Circular 06/2022/TT-NHNN comes into force from August 15, 2022.
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