Principles for replacement of licenses, addition of operations to licenses of commercial banks in Vietnam

Principles for replacement of licenses, addition of operations to licenses of commercial banks in Vietnam

- The State Bank of Vietnam will not replace licenses for operational contents that commercial banks, branches of foreign banks are not permitted to perform as per the laws applicable at the time of reissuance.

- The State Bank of Vietnam adjusts the names of the permissible operational contents in accordance with the provisions of the Law on Credit Institutions and Appendix 01, Appendix 02, Appendix 03 issued together with Circular 34/2024/TT-NHNN. The reissued License replaces all licenses and approval documents (which are integral parts of the License) that the State Bank has granted to the commercial bank or the branch of the foreign bank prior to the reissuance.

- The State Bank reviews and approves the participation in international payment systems by commercial banks and branches of foreign banks for each international payment system.

- For activities involving foreign exchange business, provision of foreign exchange services; international payment services; business activities, provision of derivative products involving foreign exchange, currency, and other financial assets for customers domestically and internationally; gold trading activities, the supplementing of operational contents in the License is carried out by the specific regulations of the State Bank and other related legal provisions.

- For operational contents stipulated in Clause 25, Article 4 of the Template License for Reissuing the License for Establishment and Operation of a Commercial Bank (Appendix 01) and Clause 24, Article 4 of the Template License for Reissuing the License for Establishment of a Branch of a Foreign Bank (Appendix 02, Appendix 03), commercial banks and branches of foreign banks may only perform these activities after obtaining approval from the State Bank of Vietnam; the procedures for supplementing these operational contents into the License shall be in accordance with the specific regulations of the State Bank and other related legal provisions.

- In cases where commercial banks or branches of foreign banks request the supplementing of operational contents into the License concurrently with applying for a reissued License, the State Bank will consider reissuing the License that includes the supplemental contents as requested, based on the commercial bank or branch of the foreign bank fulfilling all required documentation as stipulated in Article 9 of Circular 34/2024/TT-NHNN.

More details can be found in Circular 34/2024/TT-NHNN which comes into force in Vietnam from July 1, 2024.

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