6 prohibited acts in asset liquidation of credit institutions in Vietnam

10:42, 10/01/2018

The State Bank of Vietnam issued Circular No. 24/2017/TT-NHNN on procedures for revocation of licenses and asset liquidation of credit institutions, branches of foreign banks.

According to Circular No. 24/2017/TT-NHNN of the State Bank of Vietnam, from the date on which the competent decision-maker approves the dissolution of a credit institution, branch of foreign bank or from the date on which the Governor of the State Bank requests a credit institution or branch of foreign bank to liquidate assets in writing, it is strictly forbidden for the credit institution, branch of foreign bank, managers, executives and employees thereof to carry out activities and transactions related to assets and liabilities of the credit institution or branch of foreign bank as follows:

- Hide or disperse assets.

- Give up or reduce debt collection rights.

- Convert unsecured debts into secured debts with assets of the credit institution or branch of foreign bank.

- Pledge, mortgage, give as gift, and lease assets.

- Conclude new arrangements or agreements, except for those for ceased operation.

- Transfer money and assets abroad.

View relevant provisions at Circular No. 24/2017/TT-NHNN of the State Bank of Vietnam, effective from February 26, 2018.

- Thanh Lam -

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