What documents are included in the application for suspension of business for 05 working days or more of commercial banks in Vietnam?

What documents are included in the application for suspension of business for 05 working days or more of commercial banks in Vietnam?

Pursuant to Clause 1 Article 10 of the Circular 50/2018/TT-NHNN stipulating the application for suspension of business for 05 working days or more of commercial banks in Vietnam as follows:

a) An application form, which contains at least:

(i) Number of days and expected date of suspension of business;

(ii) Reasons and necessity for suspension of business;

(iii) Measures to be taken to minimize the effect of the business suspension on the rights and interests of customers;

b) A resolution or decision on approval for suspension of business of the Board of Directors in case of a joint stock commercial bank, a resolution or decision on approval for suspension of business of the Board of Members in case of a limited liability commercial bank, a decision on approval for suspension of business issued by the General Director of the FBB;

c) Documentary evidences for necessity for suspension of business.

What are procedures for granting approval for suspension of business for 05 working days or more of commercial banks in Vietnam?

Pursuant to Clause 2 and 3, Article 10 of the Circular 50/2018/TT-NHNN stipulating procedures for granting approval for suspension of business for 05 working days or more of commercial banks in Vietnam as follows:

2. Procedures for granting approval:

a) At least 45 working days prior to the expected date of suspension of business, the commercial bank or FBB shall submit an application to the State Bank. If the application is unsatisfactory, within 07 working days from the receipt of the application, the State Bank shall request the commercial bank or FBB in writing to complete it;

b) Within 30 working days from the receipt of the satisfactory application, the State Bank shall grant a written approval for suspension of business by the commercial bank or FBB. In case of rejection of the application, the State Bank shall respond and provide explanation in writing.

3. At least 07 working days prior to the date of suspension of business approved by the State Bank, the commercial bank or FBB shall publish a notification of its suspension of business, including information about the date and reasons for its suspension of business on its mass media, mass media of the State Bank and on a daily printed newspaper in 03 consecutive issues or an electronic newspaper of Vietnam.

What are regulations on increase in charter capital of joint stock commercial bank other than the cases of conversion of convertible bonds, additional charter capital reserve fund, share premium, retained earnings and other funds prescribed by law in Vietnam?

Pursuant to Article 12 of the Circular 50/2018/TT-NHNN (amended by Clause 5, Article 1 of the Circular 06/2022/TT-NHNN) stipulating increase in charter capital of joint stock commercial bank other than the cases of conversion of convertible bonds, additional charter capital reserve fund, share premium, retained earnings and other funds prescribed by law in Vietnam as follows:

1. An application includes:

a) An application form, which contains at least:

(i) Current charter capital and charter capital expected to be increased;

(ii) A commitment to notify share purchasers of rights and obligations of shareholders in accordance with regulations of the Law on Credit Institutions. To be specific:

- Take legal responsibility for the legitimacy of the sources of funding for purchasing shares; do not use credit extended by the credit institution or FBB to purchase shares; do not purchase shares in the name of another individual or juridical person in any form, unless it is authorized in accordance with law;

- Comply with regulations of the Law on Credit Institutions on the limits on ownership of shares by shareholders, shareholders and their related persons;

- Comply with regulations on major shareholders, major shareholders and their related persons;

(iii) In case the increase in charter capital of a joint-stock commercial bank results in establishment of a new majority shareholder or change of the status of a majority shareholder into an ordinary shareholder or share purchase by a majority shareholder, the application shall also indicate name of the shareholder, the shareholder’s holding ratio before and after the joint-stock commercial bank increases its charter capital;

b) A resolution or decision of the General meeting of shareholders on approval for plan for increase in the charter capital of the commercial bank;

c) The plan for increase in the charter capital of the joint stock commercial bank specified in Point b of this Clause, which contains at least:

(i) Necessity for increase in charter capital;

(ii) Total charter capital expected to be increased; total face value, types of shares issued, share issuer; expected issuance and plan tailored for each issuance (if any);

(iii) Expected date of issuance and expected date of completing the issuance of additional stocks;

(d) A list of shareholders and holdings of shareholders that own shares whose value is at least 5% of voting share capital and of charter capital before and after the increase; list of shareholders and their related persons that own shares whose value is at least 20% of charter capital before and after the increase. These lists must include identity information of shareholders and their related persons as prescribed by law.

2. Procedures for granting approval, effective period of the written approval and amendment to the License regarding the increase in charter capital shall comply with Clauses 2, 3 and 4 Article 11 of this Circular.

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