04 rules for asset liquidation of credit institutions, branches of foreign banks in Vietnam

10:11, 18/01/2018

On December 29, 2017, the State Bank of Vietnam issued Circular No. 24/2017/TT-NHNN on procedures for revocation of licenses and asset liquidation of credit institutions, branches of foreign banks.

According to Circular No. 24/2017/TT-NHNN of the State Bank of Vietnam, revocation of licenses and asset liquidation of credit institutions, branches of foreign banks shall comply with the following rules:

- The credit institution or branch of foreign bank must determine the repayment capacity of the debts and other liabilities associated with assets before and during the asset liquidation, dissolution, and revocation of licenses.

- The State Bank of Vietnam only approves the dissolution if the credit institution or branch of foreign bank is able to pay off the debts and other liabilities associated with assets.

- In the course of oversight of the asset liquidation, if the credit institution is found insolvent to repay all of the debts, the State Bank shall decide to terminate the liquidation, and then proceed the plan for bankruptcy of the credit institution.

- During the asset liquidation, if the branch of foreign bank is found unable to repay the debts and liabilities in full, the parent bank is obliged to honor the commitment.

View procedures for revocation of licenses at Circular No. 24/2017/TT-NHNN of the State Bank of Vietnam, effective from February 26, 2018.

- Thanh Lam -

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