Vietnam: What are the responsibilities of microfinance institutions in case of the termination of public service providers?
- What are the responsibilities of microfinance institutions in Vietnam in case of the termination of public service providers?
- In what case will public service providers under microfinance institutions in Vietnam be subject to compulsory termination?
- What does the published information on the termination of public service providers under microfinance institutions in Vietnam include?
What are the responsibilities of microfinance institutions in Vietnam in case of the termination of public service providers?
Pursuant to Clause 2, Article 24 of Circular 19/2019/TT-NHNN as follows:
Termination or dissolution of branches, transaction offices, representative offices and public service providers
1. A branch, transaction office, representative office or public service provider shall be terminated or dissolved in the following cases:
a) Implicit termination or dissolution;
b) Voluntary termination or dissolution;
c) Compulsory termination or dissolution.
2. The MFI shall:
a) settle issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or public service provider that is terminated or dissolved in accordance with regulations of law;
b) keep documents, vouchers and other papers of the branch, transaction office, representative office or public service provider and all documents concerning the termination or dissolution;
c) carry out legal procedures for termination or dissolution of the branch, transaction office, representative office or public service provider in accordance with regulations of law.
Thus, the responsibilities of microfinance institutions in Vietnam in case of the termination of public service providers are:
- Settle issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or public service provider that is terminated or dissolved in accordance with regulations of law;
- Keep documents, vouchers and other papers of the branch, transaction office, representative office or public service provider and all documents concerning the termination or dissolution;
- Carry out legal procedures for termination or dissolution of the branch, transaction office, representative office or public service provider in accordance with regulations of law.
In what case will public service providers under microfinance institutions in Vietnam be subject to compulsory termination?
Pursuant to Clause 1, Article 27 of Circular 19/2019/TT-NHNN as follows:
Compulsory termination or dissolution of branches, transaction offices, representative offices and public service providers
1. The branch, transaction office, representative office or public service provider of an MFI shall be subject to the compulsory termination or dissolution if there are evidences that the application for establishment of the branch, transaction office, representative office or public service provider contains false information, resulting in inaccurate assessment of the fulfillment of establishment conditions.
2. In the case mentioned in Clause 1 of this Article, the State Bank branch shall submit a written request for approval for termination or dissolution of the branch, transaction office, representative office or public service provider, which must indicate reasons for the termination or dissolution to the State Bank.
3. Within 15 working days from the receipt of the written request for approval for termination or dissolution of the branch, transaction office, representative office or public service provider of the MFI from the State Bank as regulated in Clause 2 of this Article or the case mentioned in Clause 1 of this Article is discovered during the inspection or supervision, the Banking Supervision Agency shall request the Governor of the State Bank to request the related MFI in writing to terminated or dissolve its branch, transaction office, representative office or public service provider.
4. Within 90 days from the date on which the State Bank sends the written request for termination or dissolution of the branch, transaction office, representative office or public service provider to the MFI, the MFI must complete all procedures for termination or dissolution of the branch, transaction office, representative office or public service provider, and submit a report to the State Bank on specific date of termination or dissolution and results thereof.
5. Within 24 months from the date on which the State Bank sends the written request for compulsory termination or dissolution of a branch to the MFI, the MFI must develop a plan for handling the transaction office managing such branch in order to ensure the regulations of this Circular are complied with.
Thus, a public service provider of an microfinance institution shall be subject to the compulsory termination if there are evidences that the application for establishment of the public service provider contains false information, resulting in inaccurate assessment of the fulfillment of establishment conditions.
What does the published information on the termination of public service providers under microfinance institutions in Vietnam include?
Pursuant to Clause 2, Article 28 of Circular 19/2019/TT-NHNN as follows:
Publishing of information about the termination or dissolution of branches, transaction offices, representative offices and public service providers
1. Within 07 working days from the date of termination or dissolution of the branch, transaction office, representative office or public service provider, the MFI must post notices of the termination or dissolution at its headquarters, the location of the branch, transaction office, representative office or public service provider that is terminated and the location of the branch managing transaction offices (except in the case where the transaction office is terminated) and publish information concerning the termination or dissolution on the web portals of the State Bank and MFI (if any), on 03 consecutive issues of a daily printed newspapers or an online newspaper of Vietnam.
2. Information to be published includes:
a) Name and address of the branch, transaction office, representative office or public service provider that is terminated or dissolved;
b) Date of termination or dissolution;
c) The MFI’s responsibility to settle issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or public service provider that is terminated or dissolved.
Thus, the published information on the termination of public service providers under microfinance institutions in Vietnam includes:
- Name and address of the branch, transaction office, representative office or public service provider that is terminated or dissolved;
- Date of termination or dissolution;
- The MFI’s responsibility to settle issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or public service provider that is terminated or dissolved.
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