Are representative offices of commercial banks in Vietnam entitled to perform business operations?
- Are representative offices of commercial banks in Vietnam entitled to perform business operations?
- What are the conditions for establishment of representative offices of commercial banks in Vietnam?
- What is the dossier of requesting approval to establish representative offices of commercial banks in Vietnam?
Are representative offices of commercial banks in Vietnam entitled to perform business operations?
Pursuant to Clause 4, Article 3 of Circular No. 21/2013/TT-NHNN as follows:
Representative Office means a dependent unit of commercial bank which has seal and performs the representative function under authorization of commercial bank. A representative office is not entitled to perform business operations.
Thus, representative offices of commercial banks are not entitled to perform business operations.
Are representative offices of commercial banks in Vietnam entitled to perform business operations?
What are the conditions for establishment of representative offices of commercial banks in Vietnam?
Pursuant to Article 9 of Circular No. 21/2013/TT-NHNN stipulating as follows:
Conditions for establishment of representative offices, public service providers in Vietnam and representative offices in foreign countries
In order to establish representative offices, public service providers in Vietnam and representative offices in foreign countries, commercial banks must meet fully the following conditions:
1. The minimum operational duration is 12 months counted from the date of starting activities till the time of request.
2. Conditions specified in points dd, e, i Clause 1 Article 6 of this Circular.
3. For the establishment of representative offices, apart from meeting conditions specified in Clauses 1, 2 of this Article, the commercial banks must meet conditions specified in point g Clause 1 Article 6 of this Circular.
Thus, the establishment of a representative office of a commercial bank must fully satisfy the following conditions:
- The minimum operational duration is 12 months counted from the date of starting activities till the time of request.
- Conditions specified in points dd, e, i Clause 1 Article 6 of Circular No. 21/2013/TT-NHNN and Article 2 of Circular No. 17/2018/TT-NHNN, including:
+ At the time of request, Board of Directors, Member assembly, and control board have quantity and structure in accordance with provisions of law, are not lacked General Director;
+ At the time of request, the commercial bank has internal auditing division and internal control system ensuring compliance with Article 41 Article 41 of the 2010 Law on credit institutions and relevant provisions of current law;
- For the establishment of representative offices, apart from meeting conditions specified in Clauses 1, 2 Article 9 of Circular No. 21/2013/TT-NHNN, the commercial banks must meet conditions specified in point g Clause 1 Article 6 of Circular No. 21/2013/TT-NHNN, as amended by Clause 4, Article 1 of Circular No. 01/2022/TT-NHNN as follows:
+ Not under network expansion restriction according to regulations on imposing penalties for administrative in monetary and banking sectors;
What is the dossier of requesting approval to establish representative offices of commercial banks in Vietnam?
Pursuant to Article 12 of Circular No. 21/2013/TT-NHNN stipulating as follows:
Dossier of requesting the approval for eligibility to establish branches, transaction offices in country, approval for establishment of representative offices, public service providers in Vietnam; branches, representative offices, banks under type of owning 100% of capital in foreign countries
1. Documents of commercial bank to request state bank for approval for eligibility to establish branches, transaction offices in country; approval for establishment of representative offices, public service providers in Vietnam; branches, representative offices, banks invested 100% of capital in foreign country (according to the form in Annex No. 01 promulgated together with this Circular).
2. Resolution of Board of Directors or Member assembly about establishment of branches, transaction offices, representative offices, public service providers in Vietnam; branches, representative offices in foreign countries. In which, for establishment of transaction offices, the Resolution of Board of Directors or Member assembly must clearly state the name, address to locate head office, the tentative branch managing transaction office, professional operations which the transaction office will perform, the geographical operational scope and principal customers.
3. Resolution of Congress of shareholders (for joint-stock commercial banks); Resolution of Member assembly (for limited liability commercial banks with two members or more); the approval opinion of the owner (for limited liability commercial banks with one member) for approving the establishment of banks invested 100% of capital in foreign countries.
…
6. Other documents proving the satisfaction of conditions for establishment of branches, transactions offices, representative offices, public service providers in Vietnam; branches, representative offices, banks invested 100% of capital in foreign countries as prescribed in this Circular.
Thus, the dossier of requesting approval to establish representative offices of commercial banks in Vietnam will include:
- Documents of commercial bank to request state bank for approval for establishment of a representative office of the commercial bank.
- Resolution of Board of Directors or Member assembly about establishment of a representative office of the commercial bank.
- Other documents proving the satisfaction of conditions for establishment of a representative office of the commercial bank as prescribed.
LawNet
