2020: Who have the power to grant license on operation of commercial banks in Vietnam?

Power to grant license on organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam is specified in Article 3 of Circular No. 40/2011/TT-NHNN, amended by Clause 1 Article 1 of Circular No. 25/2019/TT-NHNN of the State Bank of Vietnam (SBV) as follows:

Firstly, the Governor of SBV shall have the power to decide:

- the grant of license to commercial banks and foreign bank branches

- the replacement or modification of license granted to commercial banks or foreign bank branches that are subject to micro-inspection of the Banking Supervision Agency.

Secondly, each Director of the SBV’s branch in province or central-affiliated city shall have the power to decide:

- the replacement or modification of license granted to foreign bank branches located in that province or city, except those prescribed in Point b Clause 1 of this Article;

- the issuance or modification of license granted to representative offices.

Note: License shall include establishment and operation License of a commercial bank, establishment License of a foreign bank's branch, establishment License of a representative office issued by SBV. Documents issued by the State Bank on the amendment, supplement of the License is an integral part of the License.

View other regulations at Circular No. 25/2019/TT-NHNN of the State Bank of Vietnam, effective from January 17, 2020.

Thu Ba

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