Principles for preparing and submitting the request dossier for approval of changes by commercial banks from 01/7/2024 in Vietnam

Principles for preparing and submitting the request dossier for approval of changes by commercial banks from 01/7/2024 in Vietnam​ (Image from Internet)

On June 28, 2024, the Governor of the State Bank of Vietnam promulgated Circular 22/2024/TT-NHNN, amending Circular 50/2018/TT-NHNN on the dossiers, order, and procedures for approving the change of content of commercial banks and foreign bank branches.

Principles for preparing and submitting the request dossier for approval of changes by commercial banks from 01/7/2024 in Vietnam

The preparation and submission of the request dossier for approval of changes by commercial banks from July 01, 2024, will adhere to the following principles:

(1) The dossier must be prepared in one set in Vietnamese. Components of the dossier in foreign languages must be legalized according to Vietnamese laws (except cases exempted as per laws on legalization) and translated into Vietnamese.

Translations from foreign languages into Vietnamese must be notarized or certified for the translator's signature according to the laws.

(2) For components that are copies, commercial banks and foreign bank branches must submit certified copies or present the original for comparison with the copy.

If the applicant submits the copy and presents the original for comparison, the person comparing must sign the confirmation on the copy and be responsible for its accuracy versus the original.

(3) The request letter for approval from commercial banks or foreign bank branches must be signed by the legal representative or an authorized representative (herein referred to as the legal representative).

If signed by an authorized person, the dossier must include an authorization letter compliant with the law.

(4) The dossier of commercial banks or foreign bank branches shall be sent to the State Bank or its branches in provinces or cities in one of the following ways:

• Submitted online via the National Public Service Portal or the State Bank’s Public Service Portal (for dossiers by commercial banks as prescribed in Articles 5 and 8 of Circular 50/2018/TT-NHNN);
• Directly submitted at the single-window department of the State Bank or its provincial/city branches;
• Via postal services.

(5) For online submissions via the National Public Service Portal or the State Bank’s Public Service Portal, electronic dossiers must use digital signatures according to the regulations on administrative procedures in an electronic environment. If the National Service Portal or the State Bank Service Portal experiences issues or errors hindering the submission, information exchange and responses can be conducted via postal services or directly at the One-Stop Department of the State Bank.

(6) Documents in the electronic dossier must be scanned electronic copies of the originals (PDF format files).

(Article 3 Circular 50/2018/TT-NHNN, amended by Circular 22/2024/TT-NHNN)

| It is known that Circular 50/2018/TT-NHNN regulates:
- The dossiers and procedures for approving changes, amending, and supplementing the Establishment and Operation License of commercial banks, the Establishment License of foreign bank branches (hereinafter referred to as Licenses) for the following contents:
(i) Changing the name and headquarters location of the commercial bank; changing the name and location of the foreign bank branch's headquarters;
(ii) Increasing the charter capital of the commercial bank or the allocated capital of the foreign bank branch;
(iii) Extending the operation duration;
- The dossiers and procedures for approving changes of commercial banks and foreign bank branches:
(i) Buying, selling, or transferring the contributed capital of the owner of a one-member limited liability commercial bank; buying, selling, or transferring the contributed capital of a member of a two-member limited liability commercial bank or more;
(ii) Buying or acquiring shares leading to becoming a major shareholder in the commercial bank;
(iii) Temporarily stopping transactions for five or more working days, except in case of force majeure.
(Clause 1 Article 1 Circular 50/2018/TT-NHNN, amended by Circular 22/2024/TT-NHNN) || --- |

More details can be found in Circular 22/2024/TT-NHNN effective from July 01, 2024, except for the provisions on online dossiers of commercial banks in Circular 22/2024/TT-NHNN which are effective from July 01, 2025.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE