Vietnam: From the date of issuance of the license, what is the deadline for the people’s credit funds to commence their operation?
- From the date of issuance of the license, what is the deadline for the people’s credit funds to commence their operation?
- What are the conditions for commencement of operations of the people’s credit fund in Vietnam?
- What are the regulations on posting information before the commencement of operations?
From the date of issuance of the license, what is the deadline for the people’s credit funds to commence their operation?
Pursuant to Circular No. 04/2015/TT-NHNN on people's credit funds issued by the Governor of the State Bank of Vietnam on March 31, 2015.
Clause 2, Article 15 of Circular No. 04/2015/TT-NHNN has the following provisions:
Commencement of operations of the people’s credit fund in Vietnam
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2. The people's credit fund must commence their operation within 12 months from the date of issuance of the license and may only operate from the date of commencement of operation.
Thus, according to the above provisions, within 12 months from the date of issuance of the license, the people's credit fund must commence their operation and may only operate from the date of commencement of operation.
At the same time, the people’s credit fund granted the license must use the correct name, carry out the operations as specified in the license and avoid performing any lines of business not specified in the license.
Vietnam: From the date of issuance of the license, what is the deadline for the people’s credit funds to commence their operation? (Image from the Internet)
What are the conditions for commencement of operations of the people’s credit fund in Vietnam?
Pursuant to the provisions of Clause 4, Article 15 of Circular No. 04/2015/TT-NHNN as amended and supplemented by Article 2 of Circular No. 01/2023/TT-NHNN as follows:
Commencement of operations of the people’s credit fund in Vietnam
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4. Conditions for commencement of operations of the people’s credit fund
A people’s credit fund granted the license may only commence its operation if it fully:
a) has a cooperative registration certificate; has sufficient charter capital to be deposited into the non-interest bearing blocked account opened at the branch of State bank at least 30 days before commencement of operation, the charter capital shall be released after the commencement;
b) has a headquarter meeting the asset safety assurance and operation requirements;
c) has publicized information as prescribed in Clause 3 this Article;
d) has the organizational structure, managerial, internal audit and internal control system in accordance with the contents and scope of operation; and
dd) has internal regulations as prescribed in Clause 2, Article 93 of the Law on Credit Institutions and regulations on organization and operation of the Board of Directors and Control Board of the people's credit fund.
Thus, according to the above regulations, a people’s credit fund granted the license may only commence its operation if it fully:
- has a cooperative registration certificate; has sufficient charter capital;
- has a headquarter meeting the asset safety assurance and operation requirements;
- has publicized information at the People’s Committee at the Commune, announce on the radio or radio station of the Commune where the head office is located for 03 consecutive days and publish on a newspaper of province for 03 consecutive days as prescribed in Clause 3 Article 15 of Circular No. 04/2015/TT-NHNN;
- has the organizational structure, managerial, internal audit and internal control system in accordance with the contents and scope of operation; and
- has internal regulations as prescribed in the Law on Credit Institutions and regulations on the organization and operation of the Board of Directors, the Control Board of the people's credit fund.
At least 10 working days before the planned date of commencement of operation, the people’s credit fund granted the license must send a written notice on its operation conditions in person or by post to the branch of State Bank.
What are the regulations on posting information before the commencement of operations?
Posting information before the the commencement of operations is specified in Clause 3, Article 15 of Circular No. 04/2015/TT-NHNN as amended and supplemented by Article 2 of Circular No. 01/2023/TT-NHNN. To be specific:
Commencement of operations of the people’s credit fund in Vietnam
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3. 10 days before the commencement of operations, the people’s credit fund granted the license must post a notice at the People’s Committee at the Commune, announce on the radio or radio station of the Commune where the head office is located for 03 consecutive days and publish on a newspaper of province for 03 consecutive days on:
a) Name, location of the headquarter;
b) Number and issuance date of the license; number and issuance date of the cooperative registration certificate; contents and scope of operation, lifespan of operation and area of operation;
c) Charter capital;
d) Legal representative;
dd) List and capital contribution portions of each founding members of the people’s credit fund;
e) Planned date of commencement of operations of the people’s credit fund.
Thus, 10 days before the commencement of operations, the people’s credit fund granted the license must post a notice at the People’s Committee at the Commune, announce on the radio or radio station of the Commune where the head office is located for 03 consecutive days and publish on a newspaper of province for 03 consecutive days on:
- Name, location of the headquarter;
- Number and issuance date of the license; number and issuance date of the cooperative registration certificate; contents and scope of operation, lifespan of operation and area of operation;
- Charter capital;
- Legal representative;
- List and capital contribution portions of each founding members of the people’s credit fund;
- Planned date of commencement of operations of the people’s credit fund.
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