Responsibilities of the State Bank of Vietnam on the licensing of commercial banks

According to Clause 6 Article 1 of Circular No. 25/2019/TT-NHNN of the State Bank of Vietnam (SBV) amending SBV’s responsibilities on the licensing and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Vietnam. To be specific, each SBV’s provincial branch shall:

- Within 30 days from the receipt of the written request of the Banking Supervision Agency, the SBV's branch in the province or city where the commercial bank or foreign bank branch will be located shall appraise the received application for license and give a report thereto to the Banking Supervision Agency;  

- Act as a contact point in charge of working with the government in the area where the commercial bank or foreign bank branch will be located about the establishment of such commercial bank or foreign bank branch (if any);

- Act as the contact point in charge of inspecting, instructing and supervising commercial banks and foreign bank branches in complying and fulfilling requirements set out by law and by the SBV before their commencement of operations;

- Suspend the commencement of operations of commercial banks and foreign bank branches in case they fail to meet requirements for commencement of operations;

- Submit reports to the SBV's Governor on the fulfillment of requirements and commencement of operations of commercial banks and foreign bank branches;

- Receive and appraise applications prescribed in Article 18, Article 18c and Clause 1 Article 18dd of this Circular;  

- Send written request for opinions of People’s Committee of the province or central-affiliated city where the representative office will be located about:

+ the location of the representative office when processing an application for license for establishment of representative office;

+ the relocation of the representative office to another province or city;

- Take responsibility to manage and retain applications for license after having issued the license;

- Receive notification of representative offices located in the province or city of their changes mentioned in Clause 2 Article 18d of this Circular;

- Inform the Ministry of Public Security (via the Economic Security Department) of the person acting as Chief Representative after having granted the license to a representative office and of the replacement of the Chief Representative upon written notification given by the representative office; 

- Carry out inspection of representative offices located in the province or city in accordance with law regulations.

View other regulations at Circular No. 25/2019/TT-NHNN of the State Bank of Vietnam, effective from January 17, 2020.

Thu Ba

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