Regulations on termination of special control over credit institutions in Vietnam from July 1, 2024

Regulations on termination of special control over credit institutions in Vietnam from July 1, 2024 (Image from the internet)

On July 1, 2024, the Governor of the State Bank of Vietnam issued Circular 39/2024/TT-NHNN regulating the special control over credit institutions in Vietnam.

1. Authorization in special control over credit institutions from July 1, 2024

The authorization in special control over credit institutions is prescribed as follows:

- The Governor of the State Bank of Vietnam shall consider and decide on the following contents for credit institutions, except for people's credit funds:

(1) Putting credit institutions that fall under the provisions of Clause 1, Article 162 of the Law on Credit Institutions 2024 into special control.

(2) Forms of special control;

(3) Establishment of the Special Control Board;

(4) Duration of special control;

(5) Notification of special control;

(6) Disclosure of special control information;

(7) Extension of the special control period;

(8) Termination of special control;

(9) Other contents under the authority of the State Bank of Vietnam (hereinafter referred to as the State Bank) as prescribed in the Law on Credit Institutions 2024 and Circular 39/2024/TT-NHNN.

- The Director of the State Bank's branches in provinces and centrally-run cities shall consider and decide on the following contents for people's credit funds headquartered in their areas:

+ The contents specified in points (1), (2), (3), (4), (5), (6), (7), (8) above;

+ The contents specified in Clause 2, Article 163; Clauses 4 and 5, Article 166; Clause 9, Article 167; Clauses 3 and 5, Article 169; Clause 3, Article 172; Clauses 2, 5 and 6, Article 174; Clause 2, Article 176; Clauses 3 and 4, Article 178; Clauses 2 and 3, Article 187 (except for the contents specified at Point c, Clause 3, Article 3 of Circular 39/2024/TT-NHNN), Clause 3, Article 188 (except for the contents specified at Point b, Clause 3, Article 3 of Circular 39/2024/TT-NHNN), Clauses 3 and 4, Article 190 of the Law on Credit Institutions 2024.

- Other contents under the authority of the State Bank's branches in provinces and centrally-run cities (hereinafter referred to as the State Bank's branches) as prescribed in Circular 39/2024/TT-NHNN and relevant laws.

- The Director of the State Bank's branches shall report and propose to the Governor of the State Bank (through the Banking Inspection and Supervision Agency) the following contents for people's credit funds headquartered in their areas:

+ To submit to the Government of Vietnam decisions on applying special measures as prescribed in Clause 4, Article 162 of the Law on Credit Institutions 2024;

+ To submit to the Prime Minister of the Government of Vietnam decisions on the deposit insurance payout limits for depositors as prescribed in Clause 3, Article 188 of the Law on Credit Institutions 2024;

+ To approve support measures beyond the authority as prescribed at Point i, Clause 1, Article 171; Clause 11, Article 174, and Clause 3, Article 187 of the Law on Credit Institutions 2024;

+ Other contents beyond the authority of the State Bank's branches as prescribed in Circular 39/2024/TT-NHNN and relevant laws.

2. Regulations on termination of special control in Vietnam

- When a credit institution under special control falls into one of the cases specified in Article 168 of the Law on Credit Institutions 2024, the Special Control Board shall recommend that the Governor of the State Bank (through the Banking Inspection and Supervision Agency) consider and decide to terminate the special control of the credit institution under special control stipulated in Clause 1, Article 3 of Circular 39/2024/TT-NHNN or recommend that the Director of the State Bank's branch consider and decide to terminate the special control of the credit institution under special control stipulated in Clause 2, Article 3 of Circular 39/2024/TT-NHNN.

- Within 20 days from the date of receipt of the recommendation of the Special Control Board as specified above, the Governor of the State Bank or the Director of the State Bank's branch shall consider and decide to terminate the special control of the credit institution under special control according to the authority prescribed in Article 3 of Circular 39/2024/TT-NHNN.

- The credit institution under special control shall be terminated from special control from the effective date of the Decision on Termination of Special Control.

(Article 9 of Circular 39/2024/TT-NHNN)

Nguyen Ngoc Que Anh

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