Principles of replacement of the operation License of a commercial bank in Vietnam

License mentioned in Circular No. 17/2017/TT-NHNN and Circular No. 40/2011/TT-NHNN of the State Bank of Vietnam shall include establishment and operation License of a commercial bank, establishment License of a foreign bank's branch, establishment License of a representative office issued by the State Bank. Documents issued by the State Bank on the amendment, supplement of the License is an integral part of the License.

Specifically, the replacement of the license and addition of activities to the license shall comply with the following principles:

- The State Bank shall not grant the replacement of the activities that the commercial bank/branch of foreign bank is not allowed to perform as prescribed in the laws effect at the time of application for replacement; concurrently, names of allowable activities shall be adjusted according to the regulations of the Law on credit institutions and Appendixes 01a, 01b enclosed herewith. The new license replaces all the licenses and approvals (which are integral parts of the license) that the State Bank has granted to such commercial bank/branch of foreign bank before the time of replacement.

- With regard to trading and provision of foreign exchange service; trading of gold bullion; the trading and provision of derivative products regarding foreign exchange, currency and other financial products in domestic market and international market, the addition of activities to the License shall comply with specific regulations of the State bank and other relevant law provisions.

- The commercial bank and the branch of foreign bank may perform the activities specified in Clause 24 Article 4 of the form in Appendix 01a and Clause 23 Article 4 of the form in Appendix 01b after obtaining the approval from the State Bank; procedures for application for addition of such activities to the License shall be carried out in accordance with specific regulations of the State Bank and other relevant law provisions.

- If a commercial bank or a branch of foreign bank applies for addition of activities to the License concurrently with replacement of the License, the State Bank will consider granting approval for replacement of the License that contains additional activities according to the application provided that the applicant satisfies application requirements specified in Article 18c of this Circular.

View details at Circular No. 17/2017/TT-NHNN of the State Bank of Vietnam, effective from January 05, 2018.

Thu Ba

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