Hanoi, Vietnam: Amendments to applications and procedures for approving changes of non-bank credit institutions from July 1, 2024

Amendments to applications and procedures for approving changes of non-bank credit institutions in Vietnam from July 1, 2024 (Internet image)

On June 30, 2024, the Governor of the State Bank of Vietnam issued Circular 30/2024/TT-NHNN, amending and supplementing several provisions of the Circulars regarding records and procedures for approving changes and the operational network of non-bank credit institutions.

Amendments to applications and procedures for approving changes of non-bank credit institutions in Vietnam from July 1, 2024

According to Article 6 of Circular 25/2017/TT-NHNN (amended by Clause 6 of Article 2 of Circular 30/2024/TT-NHNN), the regulations on applications and procedures for approving changes of non-bank credit institutions are as follows:

* Application dossier includes:

- An application letter for approval to change the location of the head office, which includes at least the following details: current location; proposed new location ensuring compliance with legal regulations for head offices; reasons for the change; installation plan for equipment at the new office; and an office relocation plan to ensure continuous operations;

- A document from the competent authority approving the decision to change the location of the head office;

- Documents proving the lawful right to use or own the head office at the new location in accordance with relevant laws.

* Procedures for approving changes of location within the same province or centrally affiliated city where the non-bank credit institution is headquartered:

- The non-bank credit institution submits an application dossier as stipulated in Clause 1 of Article 6 of Circular 25/2017/TT-NHNN via postal service or directly at the One-Stop Department of the State Bank. If the dossier is incomplete or invalid, the State Bank shall, within 07 working days from the receipt of the dossier, issue a written request for additional documents;

- Within 20 days from receipt of the complete and valid dossier, the State Bank shall issue a written approval of the proposed new head office location for the non-bank credit institution. In case of refusal, the State Bank shall issue a written reply stating the reasons. The approval document is valid for 12 months from the date of signing;

- At least 30 days before the intended date of operation at the approved location, the non-bank credit institution must issue a written request to amend the head office location in the License to the State Bank, reporting the intended start date at the approved location and confirming compliance with the legal requirements for head offices;

- Within 03 working days from receipt of the non-bank credit institution's document as stipulated in point c, Clause 3 of Article 6 of Circular 25/2017/TT-NHNN, the Banking Inspection and Supervision Agency shall request the State Bank branch where the non-bank credit institution is headquartered to inspect the compliance of the head office at the proposed new location;

- Within 15 days from receipt of the document as stipulated in point c, Clause 3 of Article 6, the State Bank shall issue a decision to amend the location of the head office in the License for the non-bank credit institution. In case no amendment or supplement to the License is made, the State Bank shall issue a written reply and state the reasons.

* Procedures for approving changes of head office location to a different province or centrally affiliated city where the non-bank credit institution is headquartered:

- The non-bank credit institution submits an application dossier as stipulated in Clause 1 of Article 6 of Circular 25/2017/TT-NHNN via postal service or directly at the One-Stop Department of the State Bank. If the dossier is incomplete or invalid, the State Bank shall, within 07 working days from the receipt of the dossier, issue a written request for additional documents;

- Within 10 days from receipt of the complete and valid dossier, the Banking Inspection and Supervision Agency shall assess the dossier and issue a written request or submit a proposal to the Governor to issue a written request for opinions from:

+ The State Bank branches where the non-bank credit institution is currently headquartered and proposes to move to, regarding the impact of the change on the local credit institution system and any recommendations or suggestions (if any);

+ The People's Committees of the provinces or centrally-run cities where the non-bank credit institution is currently headquartered and proposes to move to, regarding the impact of the change on local political, economic, and social stability and any recommendations or suggestions (if any);

- Within 10 days from receipt of the request from the Banking Inspection and Supervision Agency, the requested agencies or units shall issue written feedback based on their functions and tasks to the Banking Inspection and Supervision Agency;

- Within 15 days from the receipt of feedback as stipulated in point c, Clause 4 of Article 6, the Banking Inspection and Supervision Agency shall compile and submit a proposal to the Governor for approval of the proposed change in head office location;

- Within 45 days from receipt of the complete and valid dossier, the State Bank shall issue a written approval of the proposed head office location change for the non-bank credit institution. In case of refusal, the State Bank shall issue a written reply stating the reasons. The approval document is valid for 12 months from the date of signing;

- At least 30 days before the intended date of operation at the approved location, the non-bank credit institution must issue a written request to amend the head office location in the License to the State Bank, reporting the intended start date at the approved location and confirming compliance with legal requirements for head offices;

- Within 03 working days from receipt of the non-bank credit institution's document as stipulated in point e, Clause 4 of Article 6, the Banking Inspection and Supervision Agency shall request the State Bank branch where the non-bank credit institution is proposed to be headquartered to inspect the compliance of the head office at the proposed new location;

- Within 15 days from receipt of the document as stipulated in point e, Clause 4 of Article 6, the State Bank shall issue a decision to amend the head office location in the License for the non-bank credit institution. In case no amendment or supplement to the License is made, the State Bank shall issue a written reply and state the reasons.

* In case of changing the head office address

without changing the actual location, the non-bank credit institution must submit a written notice of the address change and a request to amend the head office address in the License via postal service or directly at the One-Stop Department of the State Bank of Vietnam.

Within 20 days from receipt of the request from the non-bank credit institution, the State Bank shall issue a decision to amend the head office address in the License for the non-bank credit institution.

More details can be found in Circular 30/2024/TT-NHNN, effective in Vietnam from July 1, 2024.

To Quoc Trinh

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