What are conditions for establishment of transaction offices of microfinance institutions (MFIs) in Vietnam?
What are conditions for establishment of transaction offices of microfinance institutions (MFIs) in Vietnam?
Hello Lawnet. I want to know about regulations about operation of networks of microfinance institutions. What are conditions for establishment of transaction offices of microfinance institutions (MFIs) in Vietnam?
Thank you!
As prescribed in Article 12 of the Circular 19/2019/TT-NHNN (takes effect 01/01/2020), an MFI is entitled to establish a transaction office if the following conditions are met:
1. The conditions set forth in Points a, b, c, d, dd, e and g Clause 1 Article 11 of this Circular.
2. The branch expected to manage the transaction office shall satisfy the following conditions:
a) It has been operating for at least 12 months, beginning from the date of inauguration to the application date;
b) Its non-performing loan ratio on December 31 of the year preceding the year of submission of the application and in the latest report before the application date shall not exceed 3% or another ratio as decided by the State Bank’s Governor in each period;
c) A branch is not entitled to manage no more than 05 transaction offices.
Above are regulations on conditions for establishment of transaction offices of microfinance institutions (MFIs) in Vietnam.
Best regards!
