Vietnam: Requirements for commencement of operations of a branch of a non-bank credit institution

09:20, 14/01/2019

This is a notable content specified in Circular No. 53/2018/TT-NHNN issued on December 31, 2018 by the State Bank of Vietnam.

According to Circular No. 53/2018/TT-NHNN of the State Bank of Vietnam (SBV), requirements for commencement of operations of a branch of a non-bank credit institution are as follows:

- The branch has the legitimate right to own or use the branch office; the branch office must be adequate for storage of documents, convenient and safe for transactions, ensure safety of assets, be equipped with suitable security system, electrical system and communication system so as to maintain uninterrupted operations of the branch and meet fire requirements;

- The branch office must have a bank vault or safe as regulated by the SBV;

- The branch must have an information technology system maintaining the online connection between the branch and the headquarters; the branch’s information technology system and database must be operated continuously and safely for keeping confidentiality of the branch's operations and serving statistics and reporting tasks;

- The branch must employ adequate and qualified persons holding key positions of the branch, including Director and Deputy Director, and professional staff;

- The branch’s Director must meet relevant standards and requirements set forth in Clause 5 Article 50 of the Law on credit institutions and internal regulations of the non-bank credit institution.

View details at Circular No. 53/2018/TT-NHNN of the State Bank of Vietnam, effective from March 01, 2019.

-Thao Uyen-

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