Law on Amendments to Credit Institutions 2017: Officially Permitting Bank Bankruptcy

13:01, 11/07/2024

Recently, the National Assembly promulgated Law No. 17/2017/QH14 amending and supplementing certain articles of the Law on Credit Institutions.

The Law stipulates several new notable contents as follows:

- Permits the implementation of bankruptcy plans for weak credit institutions;- Shareholders that are organizations are allowed to own more than 15% of charter capital when owning shares of credit institutions in subsidiaries and affiliates;- Early intervention applied to credit institutions and foreign bank branches;- Detailed regulations on the shareholding ratio for shareholders and related persons of shareholders.- Shareholders and related persons of shareholders are allowed to own shares exceeding 20% of the charter capital of a credit institution in cases specified in Points a, b, and c, Clause 2, Article 55 of the Law on Credit Institutions.- Major shareholders of a credit institution and related persons of those shareholders are not allowed to own 5% or more of the charter capital of another credit institution.

The Law amending and supplementing the Law on Credit Institutions 2017 takes effect from January 15, 2018.

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