Legal Counselling

Vietnam’s Circular 19: Power to grant approval for operating network of an microfinance institution

10:04, 08/11/2019

Recently, the Governor of the State Bank of Vietnam issued Circular No. 19/2019/TT-NHNN on operating networks of microfinance institutions (MFIs).

Currently, “operating network of an MFI” includes domestic branches, transaction offices, representative offices and public service providers. The power to grant approval for operating network of an MFI belongs to the Governor of the State Bank of Vietnam and the Director of the State Bank branch of a province or central-affiliated city. To be specific:

tham quyen chap thuan ve mang luoi cua to chuc tai chinh vi mo, Thong tu 19/2019/TT-NHNN

Firstly, the Governor of the State Bank of Vietnam has the power to:

- grant approval for establishment of a branch/transaction office/representative office/public service provider of an MFI;

- grant approval for compulsory shutdown or dissolution of branch/transaction office/representative office/public service provider of an MFI;

- grant approval for conversion of a unit under microfinance program or project into a branch/transaction office/public service provider/representative office of an MFI.

Secondly, the Director of the State Bank branch of a province or central-affiliated city has the power to:

- grant approval for relocation of a branch/transaction office of an MFI within its province or city (including the relocation of the branch/transaction office prior to its inauguration);

- grant approval for voluntary shutdown or dissolution of a branch/transaction office of an MFI.

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

Thu Ba

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