Vietnam: 03 cases of shutdown of branches of microfinance institutions

According to Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, a branch, transaction office, representative office or public service provider of a MFI shall be shut down or dissolved in the 03 following cases:

- Implicit shutdown or dissolution (If a MFI is shut down or dissolved, its branches, transaction offices, representative offices and service providers shall be implicitly shut down or dissolved);

- Voluntary shutdown or dissolution;

- Compulsory shutdown or dissolution (The branch, transaction office, representative office or public service provider of an MFI shall be subject to the compulsory shutdown or dissolution if there are evidences that the application for establishment of the branch, transaction office, representative office or public service provider contains false information, resulting in inaccurate assessment of the fulfillment of establishment conditions).

When terminating operations, dissolving a branch, transaction office, representative office or public service provider, the MFI shall be responsible for: 

- settling issues concerning assets, rights, obligations and related benefits of the branch, transaction office, representative office or public service provider that is shut down or dissolved in accordance with regulations of law;

- keeping documents, vouchers and other papers of the branch, transaction office, representative office or public service provider and all documents concerning the shutdown or dissolution;

- carrying out legal procedures for shutdown or dissolution of the branch, transaction office, representative office or public service provider in accordance with regulations of law.

Applications and procedures for shutdown or dissolution of branches, transaction offices, representative offices and public service providers are carried out in accordance with Articles 25, 26, 27 of Circular No. 19/2019/TT-NHNN.

View more details at Circular No. 19/2019/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2020.

Thu Ba

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