What shall be done when actual value of charter capital/assigned capital fall below legal capital in Vietnam?
What shall be done when actual value of charter capital/assigned capital fall below legal capital in Vietnam?
Thank you!
Pursuant to Clause 2 Article 7 of the Circular 22/2019/NHNN (takes effect 01/01/2020), whenever the charter capital/assigned capital of a bank or FBB falls below the legal capital, SBV shall:
a) Carry out an assessment, inspection or request the bank or FBB to undergo independent audit for determination of actual value of charter capital/assigned capital in the response plan mentioned in Clause 1 of this Article.
b) Request changes or completion of the corrective measures to be implemented by the bank or FBB where necessary;
c) Supervise and inspect the implementation of the response plan, including the corrective measures requested by SBV;
d) SBV shall, in consideration of the decrease in actual value of charter capital/assigned capital, decide on the following corrective measures:
(i) The measures specified in Clause 2 Article 59 of the Law on the State bank when the actual value of charter capital/assigned capital is below 80% of legal capital;
(ii) Apply restructuring measures prescribed by law; revoke the license if the bank’s or FBB’s charter capital/assigned capital is below 50% of legal capital or is below legal capital for 6 consecutive months despite implementation of the measures mentioned in Clause 1 of this Article.
Best regards!
