Principles for revocation of Licenses for liquidation of assets of credit institutions in Vietnam from February 17, 2025

Principles for revocation of Licenses for liquidation of assets of credit institutions in Vietnam from February 17, 2025

The revocation of Licenses for liquidation of assets of credit institutions, foreign bank branches in Vietnam must ensure the following principles:

- Credit institutions, foreign bank branches must determine the capability to pay debts and other asset obligations before and during the process of asset liquidation, dissolution, and license revocation; credit institutions, foreign bank branches must settle payment account balances at the State Bank before the State Bank revokes the license as stipulated in Circular 63/2024/TT-NHNN.

- Credit institutions, foreign bank branches can only be dissolved under one of the following conditions:

+ Ensure full payment of all debts and other asset obligations and are not during the process of dispute resolution in Court or Arbitration;

+ Credit institutions under early intervention or special control have a credit institution to accept all debt obligations.

- The dissolution of credit institutions, foreign bank branches is done in accordance with Circular 63/2024/TT-NHNN and other relevant legal provisions.

- During the process of asset liquidation monitoring, if it is discovered that a credit institution is unable to fully pay its debts, the State Bank decides to terminate the liquidation and apply bankruptcy solutions for the credit institution according to Section 5 Chapter X and Article 203 of the Law on Credit Institutions 2024.

- During asset liquidation, if a foreign bank branch cannot fully pay its debts and other asset obligations, the parent bank must fulfill the commitments as per the provisions at point c, clause 3, Article 29 of the Law on Credit Institutions 2024.

Refer to Circular 63/2024/TT-NHNN effective from February 17, 2025.

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