Criteria applicable to mangers, executives of a credit institution in Vietnam as of July 1, 2024

Criteria applicable to mangers, executives of a credit institution in Vietnam as of July 1, 2024 (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

Criteria applicable to mangers, executives of a credit institution in Vietnam as of July 1, 2024

(1) A member of the Board of Directors or Board of Members shall fully meet the following criteria and requirements:

- He/she is not prohibited from holding a certain position according to regulations in Clause 1 Article 42 of the Law on Credit Institutions 2024;

- He/she possesses professional ethics under regulations of the Governor of the State Bank;

- He/she has at least a bachelor’s degree;

- He/she has at least 03 years’ experience of working as a manager or executive of the credit institution, at least 05 years’ experience of working as a manager of a finance, banking, accounting or audit enterprise or an enterprise whose equity is not smaller than the legal capital of a credit institution, at least 05 years’ experience of working in a professional department of the credit institution or foreign bank’s branch or at least 05 years’ experience of working in a finance, banking accounting or audit department.”

(2) An independent member of the Board of Directors shall fully meet the criteria and requirements specified in Clause 1 of Article 41 of the Law on Credit Institutions 2024 and the following criteria and requirements:

- Neither currently working for the credit institution or its subsidiary nor working for the credit institution or its subsidiary for 3 preceding years;

- Neither receiving salary nor remuneration regularly of the credit institution other than allowances for members of the Board of Directors;

- Having no spouse, father/mother, child, sibling or spouse of one of these persons who is a major shareholder of the credit institution, a manager or controller or member of the Board of Controllers of the credit institution or its subsidiary;

- Not acting as the representative of holding in the credit institution; neither directly nor indirectly owning 01% or more of the charter capital or voting share capital of the credit institution together with his/her related person(s);

- Not acting as a manager or member of the Board of Controllers of the credit institution at any time in the 5 preceding years.

(3) A member of the Board of Controllers shall fully meet the following criteria and requirements:

- Meeting criteria and requirements specified in point a and point b Clause 1 of Article 41 of the Law on Credit Institutions 2024;

- Having at least a bachelor’s degree in banking, finance, economics, business administration, law, accounting or audit field;

- Having at least 3 years’ experience of working directly in banking, finance, accounting or audit field;

- Not being a related person of the manager of the credit institution;

- The Head of the Board of Controllers shall reside in Vietnam during his/her term of office,

(4) The Director General (Director) shall fully meet the following criteria and requirements:

- Meeting criteria and requirements specified in point a and point b Clause 1 of Article 41 of the Law on Credit Institutions 2024;

- Having at least a bachelor’s degree in banking, finance, economics, business administration, law, accounting or audit field;

- Having at least 05 years’ experience of working as an executive of a credit institution or at least 05 years’ experience of holding the position of General Director (Director) or Deputy General Director (Deputy Director) of an enterprise whose equity is not smaller than the legal capital of a credit institution and at least 05 years’ experience of working in the finance, banking, accounting or audit field or has at least 10 years’ experience of working in the finance, banking, accounting or audit field;

- Residing in Vietnam during his/her term of office,

(5) A Deputy Director General (Deputy Director), Chief Account, Director of a branch or Director General (Director) of a subsidiary or any holder of an equivalent position under regulations of the Charter of the credit institution shall fully meet the following criteria and requirements:

- Not falling within the case where he/she is prohibited from holding a certain position specified in Clause 2 Article 42 of the Law on Credit Institutions 2024; in case of the Deputy Director General (Deputy Director), not falling within the case where he/she is prohibited from holding a certain position specified in Clause 1 Article 42 of the Law on Credit Institutions 2024;

- Having at least a bachelor’s degree in finance, banking, economics, business administration, law, accounting or audit field or another discipline under the field which he/she will undertake; or having a bachelor’s degree in a discipline other than one of the above-mentioned fields and having at least 3 years’ experience of working directly in banking or finance field or the field which he/she will undertake;

- Residing in Vietnam during his/her term of office;

- The Chief Account shall also meet criteria and requirements according to regulations of the law on accounting.

(6) The Governor of the State Bank shall specify criteria and requirements applicable to managers, executives and members of the Board of Controllers of cooperative banks, people’s credit funds, and microfinance institutions.

(Article 41 of the Law on Credit Institutions 2024)

More details can be found in the Law on Credit Institutions 2024, taking effect on July 1, 2024, except for Clause 3, Article 200 and Clause 15, Article 210 of the Law on Credit Institutions 2024, which takes effect on January 1, 2025.

The Law on Credit Institutions 2010 (amended in 2017) expires from the date the Law on Credit Institutions 2024 takes effect, except for the provisions in Clauses 1, 2, 3, 4 , 8, 9, 12 and 14 of Article 210 of the Law on Credit Institutions 2024.

Ho Quoc Tuan

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