Application on change in operation and scope of operation of microfinance institutions in Vietnam

According to Circular No. 10/2018/TT-NHNN of the State Bank of Vietnam, the application includes:

- An application form for approval for change in operation and scope of operation, containing at least:

+ Operation and scope of operation to be changed;

+ Reasons and necessity for change of operation and scope of operation;

- A decision on approval for change in operation and scope of operation issued by the Board of Members.

- A plan for changing operation and scope of operation, containing at least: description of changed operation and scope of operation, procedures for change, analysis of efficiency of change, risk prevention and control measures, business plan, plan for change;

- Draft of internal regulations on procedures for management and control of risks that arise.

Concurrently, Circular No. 10/2018/TT-NHNN also stipulates procedures for granting approval as follows:

- The MFI shall prepare an application as prescribed and submit it to the State Bank. In case the application is unsatisfactory, within 03 working days from the day on which the application is received, the State Bank shall request the MFI in writing to complete it;

- Within 30 days from the day on which the satisfactory application is received, the State Bank shall issue the decision on amendments to the MFI’s license. In case of rejection, the State Bank shall provide written explanation.

View more details at Circular No. 10/2018/TT-NHNN of the State Bank of Vietnam, effective from June 01, 2018.

-Thao Uyen-

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