Hanoi, Vietnam: Authority to Approve Changes of Non-bank Credit Institutions

Authority to Approve Changes of Non-bank Credit Institutions in Vietnam 

The authority to approve changes of non-bank credit institutions in Vietnam is as follows:

- The Governor of the State Bank of Vietnam considers and approves changes, amendments, and supplements to the License of non-bank credit institutions for the following contents:

+ Change of the location of the head office to another province or centrally governed city where the non-bank credit institution is headquartered;

+ Change in the term of operation;

+ Increase in charter capital of non-bank shareholding credit institutions from convertible bonds, reserve funds to supplement charter capital, share premium surplus funds, undistributed profits, and other funds as prescribed by law;

+ Purchase, sale, transfer of capital contributions of the owner; purchase, sale, transfer of capital contributions of contributing members;

+ Amendment and supplementation of the License of non-bank credit institutions beyond the cases mentioned above and Clause 2, Clause 3 Article 3a Circular 25/2017/TT-NHNN.

- The Chief Inspector and supervisor of banks consider and approve changes, amendments, and supplements to the License of non-bank credit institutions for the following contents:

+ Increase in charter capital of non-bank limited liability credit institutions;

+ Increase in charter capital of non-bank shareholding credit institutions other than the cases specified at point c Clause 1 Article 3a Circular 25/2017/TT-NHNN;

+ Purchase, receipt of transfer of shares leading to becoming a major shareholder.

- The Director of Banking Inspection and Supervision Department considers and approves changes, amendments, and supplements to the License of non-bank credit institutions for the following contents:

+ Change of name;

+ Change of the location of the head office within the same province or centrally governed city where the non-bank credit institution is headquartered;

+ Change of head office address without changing the location of the head office of the non-bank credit institution.

- Directors of provincial, centrally governed city State Bank branches consider and approve the temporary suspension of transactions from 05 or more working days, except for cases of transaction suspension due to force majeure events.

More details can be found in Circular 30/2024/TT-NHNN which is effective in Vietnam from July 01, 2024.

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