Procedures for replacement of licenses and addition of business lines to licenses of non-bank credit institutions in Vietnam from July 01, 2024

Procedures for replacement of licenses and addition of business lines to licenses of non-bank credit institutions in Vietnam from July 01, 2024 (Image from the Internet)

On June 30, 2024, the Governor of the State Bank of Vietnam issued Circular 35/2024/TT-NHNN regulating the reissuance of licenses, the addition of business activities to licenses, and the organization and operation of non-bank credit institutions.

Applications for replacement of licenses and addition of business lines to licenses​

Article 7 of Circular 35/2024/TT-NHNN stipulates the applications for replacement of licenses and addition of business lines to licenses as follows:

- An application for replacement of license includes:  

+ An application form for replacement of license which indicates requested business lines;

+ List of business lines accompanied by the photocopy of the existing license and such written approvals.

- An application for addition of business lines to the license includes:

+ An application form for addition of business lines to the license which indicates additional business lines. If a wholly foreign-owned non-bank credit institution applies for addition of banking operations, its application shall include the commitment of the foreign credit institution that is the owner or the contributing member holding the highest percentage of charter capital of the wholly foreign-owned non-bank credit institution, to ensure that the foreign credit institution is allowed to perform these additional banking operations at the country where the foreign credit institution is headquartered;

+ Resolution of the Board of Directors or Board of Members of the non-bank credit institution giving approval for the addition of business lines to the license;

+ Documents proving satisfaction of requirements for banking operations that the owner or the contributing member holding the highest percentage of charter capital of the wholly foreign-owned non-bank credit institution is allowed to perform at the country where the foreign credit institution is headquartered. These banking operations are expected to be performed in Vietnam;

+ In addition to the documents prescribed in Points a, b and c Clause 2 Article 7 of Circular 35/2024/TT-NHNN, the non-bank credit institution that wishes to add banking operations specified in the Law on Credit Institutions 2024 of Vietnam and Appendices issued together with Circular 35/2024/TT-NHNN to its license shall submit the following additional documents:

++ Internal regulations on banking operations to be added to the license;

++ A written commitment to have fulfilled operation, personnel, facility and technology requirements for banking operations to be added to the license according to regulations of relevant laws.

- An application for replacement of license and addition of business lines to license at the same time includes:

+ An application form for replacement of license and addition of business lines to license which indicates requested and additional business lines and the commitment specified in point a Clause 2 Article 7 of Circular 35/2024/TT-NHNN;

+ Documents specified in point b Clause 1 and points b,c,d Clause 2 Article 7 of Circular 35/2024/TT-NHNN.

Procedures for replacement of licenses and addition of business lines to licenses of non-bank credit institutions in Vietnam from July 01, 2024

According to Article 8 of Circular 35/2024/TT-NHNN, procedures for replacement of licenses and addition of business lines to licenses of non-bank credit institutions are as follows:

- The non-bank credit institution that wishes to replace the license or add business lines to its license or add business lines to its license and replace the license at the same time shall submit an application according to regulations in Article 7 of Circular 35/2024/TT-NHNN in person or by post to SBV’s headquarter (via the Single-window Section).

- Within 40 days from the receipt of the sufficient and valid application, SBV shall issue a new license or add business lines to the license or add business lines to the license and issue a new license at the same time at the request of the non-bank credit institution. If the application is refused, the SBV shall give a written notification indicating reasons for refusal to the applicant.

- After SBV has issued a new license or added business lines to the license, the non-bank credit institution shall:  

+ Publish the changes in the license on a mean of communication of the SBV and 03 consecutive issues of a printed newspaper or a Vietnamese online newspaper within 07 working days from the date on which SBV issues a new license or adds business lines to the license;

+ Amend its charter in conformity with the new license or the license covering additional business lines.

More details can be found in Circular 35/2024/TT-NHNN of the State Bank of Vietnam, effective from July 01, 2024.

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