Vietnam: Eligibility requirements for members of open market operation

According to Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, credit institutions and branches of foreign banks (except for microfinance institutions and people’s credit funds) shall be recognized as a member in open market operation when all of the following conditions are satisfied:

- Have a VND checking account opened at the State bank.

- Have a swift code granted by the State bank.

Moreover, the procedures for recognizing members of open market operation are also specified as follows:

- Credit institutions and branches of foreign banks that wish to participate in open market operations shall send an application for participating in open market operation to the State bank directly or by post so as to be considered granting the certificate of member of open market operation.

- Within 05 working days from the receipt of the application for participating in open market operation, the State bank shall grant the certificate of member of open market operation to the credit institution or the foreign bank branch if it satisfies the requirements specified in Article 5 hereof. If the application is not sufficient, a written notice must be sent to the credit institution/foreign bank branch.

- The procedure for re-recognizing members for members that have ended their membership status as specified in this Circular shall be implemented similar to those applying for the first time.

View more details at Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, effective from April 30, 2016.

- Khanh Chi -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE