Guidance on the extension of the incorporation license of commercial banks and foreign branch banks in Vietnam

According to Circular No. 50/2018/TT-NHNN of the State Bank of Vietnam, an application for extension of the incorporation license includes:

- An application form, which contains at least:

+ Expiration date of the license;

+ Requested extension;

+ Reason for extension;

- A resolution or decision on approval for extension of the incorporation license of the General meeting of shareholders in case of a joint stock commercial bank, a resolution or decision on approval for extension of the incorporation license of the Board of Members in case of a multi-member limited liability commercial bank, an owner’s decision on approval for extension of the commercial bank’s incorporation license in case of a single member limited liability commercial bank; a parent bank’s written approval for approval for extension of the FBB’s incorporation license in Vietnam;

- A general report on organizational structure and operation of the commercial bank or FBB in Vietnam, which specifies:

+ Summary of operation in 03 consecutive years preceding the year in which the application is submitted, including main operational objectives related to capital structure, use of capital and income; organizational structure and operation of the management and internal audit apparatus and the internal audit system;

+ Expected business plan for the next 03 years.

Besides, Circular No. 50/2018/TT-NHNN also stipulates that at least 06 months prior to the expiration date of the License, the commercial bank or FBB shall submit an application to the State Bank.

- If the application is unsatisfactory, within 07 working days from the receipt of the application, the State Bank shall request the commercial bank or FBB in writing to complete it.

- Within 40 working days from the receipt of the satisfactory application, the State Bank shall decide to amend the License regarding the extension. In case of rejection of the application, the State Bank shall respond and provide explanation in writing.

View more details at Circular No. 50/2018/TT-NHNN of the State Bank of Vietnam, effective from February 15, 2019.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE