Vietnam: Requirements for commercial banks to be appointed as a clearing bank by the State Securities Commission

17:30, 05/12/2019

Recently, the National Assembly of Vietnam has issued the Law on Securities 2019, replacing the Law on Securities 2006 and the amended Law on Securities 2010.

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NHTM được UBCK lựa chọn làm ngân hàng thanh toán, Luật Chứng khoán 2019

According to Article 69 of the Law on Securities 2019 of Vietnam, clearing banks include the State Bank of Vietnam (SBV) and commercial banks that provide payment services for securities transactions on the securities transaction system. In order to be appointed as a clearing bank by State Securities Commission (SSC), a commercial bank shall have:

- The license for establishment and operation in Vietnam prescribed by law;

- A charter capital of over 10.000 billion VND;

- Profit in the last 02 years;

- Satisfactory capital adequacy ratios prescribed by banking laws;

- Technical facilities qualified for payment transactions and connected to the system of Vietnam Securities Depository and Clearing Corporation (VSDCC);

- A payment and offsetting system connected to the payment and offsetting system of SBV;

- Technical facilities capable of retention of transaction information for at least 10 years and provision of such information for SSC or VSDCC within 48 hours upon request.

Besides, a clearing bank has the following rights and obligations:

- Separate payments for securities transactions on the securities transaction system from other payments of the bank in accordance with regulations of law on securities and the securities market;

- Comply with reporting regulations and fill other obligations prescribed by law;

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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