Conditions for a financial company to conduct banking operations in Vietnam

10:10, 10/05/2014

On May 07, 2014, the Government of Vietnam issued Decree No. 39/2014/NĐ-CP on the operation of financial companies and financial leasing companies.

Để công ty tài chính thực hiện hoạt động ngân hàng cần phải có điều kiện gì, 39/2014/NĐ-CP

According to Decree No. 39/2014/NĐ-CP of Vietnam’s Government, the general conditions for a financial company to conduct banking operations prescribed in Clause 1, Article 108 of the Law on Credit Institutions of Vietnam include:

1. Its banking operations are indicated in its establishment and operation license granted by the State Bank (below referred to as the license).

2. It has a contingent of professionally qualified employees, physical facilities, technologies, means, equipment and internal regulations in accordance with law for conducting banking operations indicated in the license.

3. For banking operations related to foreign exchange activities, it shall comply with the law on foreign exchange management.

4. It satisfies all professional conditions for banking operations prescribed by the State Bank.

Besides, Decree No. 39/2014/NĐ-CP also clearly states that financial companies may issue deposit certificates, promissory notes, bills or bonds to raise capital from organizations if satisfying all the following conditions:

- The conditions prescribed above.

- Their minimum operation duration, operation and business results are prescribed by the State Bank.

- Their long-term valuable paper issuance plans are approved by the Shareholders’ General Meeting, the Board of Directors or the Members’ Council in accordance with law.

View more details at Decree No. 39/2014/NĐ-CP of Vietnam’s Government, effective from June 25, 2014.

Le Hai

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