Additional regulations on trading of stakes at multi-member limited liability banks in Vietnam

Additional regulations on trading of stakes at multi-member limited liability banks in Vietnam

Clause 1 Article 2 of Circular No. 13/2023/TT-NHNN has added Point b(iii) to Point b Clause 2 Article 16 of Circular No. 50/2018/TT-NHNN on trading and transferring stakes at multi-member limited liability commercial banks as follows: 

(iii) Regarding the purchaser or transferee that is a non-bank enterprise, the application includes: 

- Establishment License or Certificate of Enterprise Registration or equivalent documents (except for Vietnamese enterprises); 

- Document authorizing a representative of the stakes at the bank as prescribed by laws; 

- Copies of the passport of the legal representative and the representative of the stakes at the bank of the enterprise (for persons without Vietnamese nationality);

- Document of a competent authority permitting the enterprise to contribute stake to the bank; 

- Report on the satisfaction of conditions for a new partner that is a non-bank enterprise when receiving the transferred stakes of the joint venture bank according to the regulations of the State Bank of Vietnam on the issuance of licenses and organization and operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions, and other foreign organizations engaging in banking in Vietnam;

- Audited financial statement of 3 years preceding the year in which the application for the approval of the trading or transfer of the stakes with no qualified opinions from the audit unit; 

- Report on financial capacity for contributing stakes to the joint venture bank of the non-bank enterprise following the form in Appendix No. 01 enclosed with Circular No. 13/2023/TT-NHNN;

- Declaration of information on the history of credit relationships of the enterprise following the form in Appendix No. 02 enclosed with Circular No. 13/2023/TT-NHNN;

- Documents of tax authorities and social insurance authorities confirming the adequate implementation of tax and social insurance obligations of the enterprise; 

- Commitment that the new capital contributor is not a founding shareholder, owner, founding member, or strategic shareholder of another credit institution established and operated in Vietnam. 

See more details in Circular No. 13/2023/TT-NHNN, which comes into force as of December 14, 2023.

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