What are the latest procedures for issuance of the license of establishment of People’s Credit Fund in Vietnam in 2023?
- What are the latest procedures for issuance of the license of establishment of People’s Credit Fund in Vietnam in 2023?
- What is the application for approval in principle of issuance of the license of establishment of people’s credit fund in Vietnam?
- How much is the fee for performing administrative procedures for issuance of the license of establishment of the People’s Credit Fund in Vietnam?
What are the latest procedures for issuance of the license of establishment of People’s Credit Fund in Vietnam in 2023?
Pursuant to Section 8, Part II, Administrative procedures promulgated together with Decision No. 658/QD-NHNN in 2023 guiding the order of granting establishment licenses of People’s Credit Funds as follows:
(1) Acceptance in principle of the establishment
- Step 1: The Preparatory Board compiles a dossier of application for a License according to regulations and sends it to the branch of the State Bank in the province or city in the locality.
- Step 2: Within 10 working days from the date of receipt of the prescribed dossier, the State Bank branch shall send a document to the Preparatory Board confirming receipt of the complete and valid dossier or request for additional information, complete the profile.
- Step 3: Within 10 working days from the date of receipt of complete and valid documents as prescribed, the State Bank branch:
(i) Send a written request to the People’s Committee of the commune where the people’s credit fund is expected to be headquartered on the establishment of the people’s credit fund in the locality; the list of personnel to be elected or appointed as the Chairman and other members of the Board of Directors, the Head and other members of the Supervisory Board, the director of the people’s credit fund;
(ii) Send a document to the cooperative bank of Vietnam on the list of personnel to be elected and appointed as Chairman and other members of the Board of Directors, Head and other members of the Supervisory Board, Director of the people’s credit fund (if necessary);
- Step 4: Within 10 working days from the date of receiving the written request of the State Bank’s branch, the commune-level People’s Committee of the place where the people’s credit fund is expected to have its head office, the legal Vietnamese cooperatives have written comments on the proposed contents. Past the above-mentioned time limit, if it does not receive written comments from the units, the State Bank’s branch shall determine that the unit to be consulted has no objection.
- Step 5: Within 30 days from the date of receipt of comments from the People’s Committee of the commune, the cooperative bank of Vietnam or from the date of expiration of the time limit for sending comments without receiving any comments, the branch of State Bank shall send a written request to the Preparatory Board approving the principles of the establishment of a people’s credit fund and approving the list of personnel to be elected and appointed as the Chairman and other members of the Board of Directors, Head and other members of the Supervisory Board, Director of the people’s credit fund.
In case of disapproval, the State Bank branch shall send a document to the Preparatory Board, clearly stating the reason.
- Step 6: Within 90 days from the date of receipt of the written approval in principle from the branch of the State Bank of Vietnam: The Preparatory Board shall organize the establishment meeting and compile a dossier of application for a License according to regulations and send it to the State Bank branch. Past the aforesaid time limit, if the State Bank branch does not receive or receives incompletely the above documents, the written approval in principle is no longer valid.
(2) Licensing:
- Step 1: Within 05 working days from the date of receipt of the prescribed documents, the State Bank branch shall certify in writing that it has received all valid documents or request the personal credit fund People supplement and complete the application file for the License;
- Step 2: Within 60 days from the date of receipt of complete and valid documents as prescribed, the State Bank branch shall issue the License; in case of refusal to grant the License, the State Bank’s branch shall send a written explanation clearly stating the reason.
What are the latest procedures for issuance of the license of establishment of People’s Credit Fund in Vietnam in 2023?
What is the application for approval in principle of issuance of the license of establishment of people’s credit fund in Vietnam?
Pursuant to Section 8 Part II of the administrative procedures promulgated together with Decision No. 658/QD-NHNN in 2023 guiding the preparation of dossiers of application for approval in principle of granting establishment licenses of People’s Credit Funds, including:
(1) An application form for a License signed by the Head of the Preparatory Board.
(2) The draft charter of the people’s credit fund was approved by the founding meeting.
(3) The proposal for the establishment of a people’s credit fund approved by the founding meeting, which clearly states:
- The need to establish a people’s credit fund;
- Name of the people’s credit fund, operation area, expected location of head office, operation term, charter capital upon establishment, operation contents in accordance with regulations;
- Organizational structure;
- Regulations on risk management, clearly stating the types of risks that may occur in the course of operation, methods and measures to prevent and control these risks;
- Procedures and policies for lending to members, depositors at people’s credit funds and poor households in the locality who are not members of people’s credit funds;
- Information technology: Estimated information technology system to manage operations, ability to apply information technology system in banking activities and investment in information technology system;
- Estimated internal control and audit system in accordance with regulations of the State Bank;
- The proposed business plan for the first 3 (three) years is suitable to the content and scope of activities, in which the effectiveness and feasibility of the plan are analyzed and explained in each year.
(4) List of personnel to be elected or appointed as the Chairman and other members of the Board of Directors, the Head and other members of the Supervisory Board, and the Director of the people’s credit fund.
(5) Documents proving the capacity of the persons expected to be elected or appointed as the Chairman and other members of the Board of Directors, the Head and other members of the Supervisory Board, the Director of the people’s credit fund include:
- Curriculum vitae;
The certification of resumes of organizations and individuals is carried out on the basis of exploiting citizens’ residence data on the National Population Database or checking the VNeiD application according to the guidance of the Ministry of Public Security, do not require organizations and individuals to submit or present paper household registration books and temporary residence books in accordance with the provisions of Article 14 of Decree No. 104/2022/ND-CP of the Government.
- Copies of professional and professional diplomas and certificates;
- Judicial record issued by the provincial/municipal Justice Service;
- Other documents proving the satisfaction of conditions and standards as prescribed.
(6) List of members contributing capital to establish the people’s credit fund. The list must be signed and certified by all capital contributors, containing at least the following contents:
- Full name (for individual members, the representative of the household); Name and address of head office (for members being legal entities);
- Number of citizen identification card or number of identity card or passport number for individual members; the number of the ID card or the number of the citizen identity card or the passport number of the representative of the household, for members being a household; enterprise code or number of establishment decision or number of other papers of equivalent value and number of citizen’s identity card or number of people’s identity card or passport number of the representative of capital contribution, for legal members core;
- Amount of capital contribution, capital contribution ratio of each member.
(7) Certificate of working place, copy of recruitment decision or working contract of the recruitment agency or unit, for capital contributors being cadres, civil servants or public employees.
(8) Copy of Certificate of Business Registration or Decision of Establishment or other equivalent document (for members being legal entities).
(9) Power of attorney of the legal entity for the representative of the legal entity to contribute capital.
(10) The household’s written authorization for the household’s representative to contribute capital.
(11) Financial statements for the year immediately preceding the year of application for license and financial statements up to the latest time but not later than 90 days from the date of signing the application for license (for members is a legal person).
(12) Report on financial capacity to contribute capital to establish people’s credit fund for legal entities as prescribed in Appendix 06 of this Circular.
(13) Application for membership.
(14) Minutes of the founding meeting.
How much is the fee for performing administrative procedures for issuance of the license of establishment of the People’s Credit Fund in Vietnam?
Regarding the fee level for issuance of establishment license of the People’s Credit Fund:
In subsection 1, part 2, administrative procedures promulgated together with Decision No. 258/QD-NHNN in 2023 stipulating that the fee for carrying out administrative procedures for granting the establishment license of the People’s Credit Fund is VND 200,000.
LawNet