What are the conditions for the opening of operations of the People’s Credit Fund in Vietnam?
What are the conditions for the opening of operations of the People’s Credit Fund in Vietnam?
According to the provisions of Clause 4, Article 15 of Circular 04/2015/TT-NHNN amended and supplemented by Article 2 of Circular 01/2023/TT-NHNN as follows:
Opening of operations
...
4. Conditions for Opening of operations:
A People’s Credit Fund that is granted a License shall only open operations when the following conditions are met:
a) Possess a Certificate of Cooperative Registration; have enough charter capital deposited in a non-interest bearing blocked account at the State Bank's branch at least 30 days prior to the openment date, the charter capital will be unblocked once the People's Credit Fund begins operations;
b) Have headquarters that ensure the safety of assets and meet operational requirements;
c) Have published the information as stipulated in Clause 3 of this Article;
d) Have a suitable organizational structure, management, internal audit, internal control system, and risk management appropriate to the content and scope of operations;
dd) Have internal regulations as stipulated in Clause 2, Article 93, Credit Institutions Law and regulations on the organization and operation of the Board of Directors, Board of Controller of the People’s Credit Fund.
Thus, according to the above regulations, the conditions for the opening of operations of the People’s Credit Fund are determined as follows:
- Possess a Certificate of Cooperative Registration; have enough charter capital;
- Have headquarters that ensure the safety of assets and meet operational requirements;
- Have published information at the headquarters of the Commune People's Committee, announced on the commune's radio station or loudspeaker system where the headquarters is located for 03 consecutive days and published in a provincial or centrally-run city newspaper for 03 consecutive releases as stipulated in Clause 3, Article 15 of Circular 04/2015/TT-NHNN;
- Have a suitable organizational structure, management, internal audit, internal control system, and risk management appropriate to the content and scope of operations;
- Have internal regulations as stipulated in Credit Institutions Law and regulations on the organization and operation of the Board of Directors, and Board of Controller of the People’s Credit Fund.
The People's Credit Fund must notify by written document about the conditions for openment, sent directly or by post, to the State Bank's branch at least 10 working days prior to the expected openment date.
What are the conditions for the opening of operations of the People’s Credit Fund in Vietnam?
What are the regulations on posting the information before the opening of operations in Vietnam?
Posting the information before the opening of operations in Vietnam is regulated in Clause 3, Article 15 of Circular 04/2015/TT-NHNN amended and supplemented by Article 2 of Circular 01/2023/TT-NHNN as follows:
Opening of operations
...
3. At least 10 working days before the opening of operations, a People’s Credit Fund that is granted a License must disclose at the headquarters of the Commune People's Committee, announce on the commune's radio station or loudspeaker system where the headquarters is located for 03 consecutive days, and publish in a provincial or centrally-run city newspaper for 03 consecutive releases about the following information:
a) Name and address of the headquarters;
b) License number and date of issuance; Certificate of Cooperative Registration number and date of issuance; content, scope, duration, and area of operations;
c) Charter capital;
d) Legal representative;
dd) List and proportional capital contributions of members establishing the People’s Credit Fund;
e) Expected date of Opening of operations.
The posed information includes:
- Name and address of the headquarters;
- License number and date of issuance; Certificate of Cooperative Registration number and date of issuance; content, scope, duration, and area of operations;
- Charter capital;
- Legal representative;
- List and proportional capital contributions of members establishing the People’s Credit Fund;
- Expected date of Opening of operations.
What is the time limit for the opening of operations of the People’s Credit Fund in Vietnam after obtaining a license?
According to the provisions of Circular 04/2015/TT-NHNN stipulating People's Credit Funds issued by the Governor of the State Bank of Vietnam on March 31, 2015.
In Clause 2, Article 15 of Circular 04/2015/TT-NHNN, it is stipulated as follows:
Opening of operations
...
2. The people's credit fund must open their operation within 12 months from the date of issuance of the license and may only operate from the date of opening of operations.
Thus, according to the above regulations, within 12 months from the date of issuance of the license, the People's Credit Fund must open operations and may only conduct operations from the date of openment.
The People’s Credit Fund must operate according to the scope of activities stated in the License and shall not conduct any business activities outside the content and scope recorded in the License.
LawNet