Principles for Reorganizing People's Credit Funds

To be specific, according to the provisions of Article 6 of Circular 23/2018/TT-NHNN, the principles for reorganizing people's credit funds include:

Firstly, compliance with this Circular and relevant legal regulations.

Secondly, the reorganization of the people's credit fund is carried out based on the reorganization plan approved by the State Bank's branch in accordance with legal regulations.

Thirdly, ensuring the safe and continuous operation of the people's credit fund; ensuring the legitimate rights and interests of the members of the people's credit fund, and customers during the reorganization process.

Fourthly, the transfer, sale, and purchase of assets during the reorganization of the people's credit fund must be transparent, comply with legal regulations and agreements between the parties, ensure asset safety, and not affect the interests of the reorganized people's credit fund and related organizations and individuals.

Fifthly, the reorganized people's credit fund inherits the rights and obligations of the reorganized people's credit fund in accordance with the law and the agreement between the parties.

Sixthly, the license of the divided people's credit fund and the participating merged people's credit funds becomes invalid when the newly formed people's credit fund begins operations. The license of the merged people's credit fund becomes invalid when the merging people's credit fund completes the cooperative registration change procedures.

Refer to related contents at: Circular 23/2018/TT-NHNN, effective from November 1, 2018.

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