Procedures for issuing the establishment and operation license of commercial banks in Vietnam from December 24, 2024

Procedures for issuing the establishment and operation license of commercial banks in Vietnam from December 24, 2024

The procedures for the issuance of an establishment and operation license for commercial banks in Vietnam from December 24, 2024, are regulated as follows:

- The Preparatory Committee prepares the application dossier for the License in accordance with Article 10; Article 11; Clauses 1, 2, 3 of Article 12; Clauses 1, 2, 3, 4, 5, 6 of Article 13; Clauses 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 of Article 14 Circular 56/2024/TT-NHNN and submits via postal services or directly at the State Bank of Vietnam (One-stop department).

Within 60 days from the receipt of the application dossier for the License, the State Bank of Vietnam sends a document to the Preparatory Committee confirming the receipt of a complete and valid dossier for considering principle approval or requesting additional documents in cases where the application dossier is incomplete or invalid;

- Within 90 days from the date of sending the confirmation document of receipt of a complete and valid dossier, the State Bank of Vietnam issues a document approving in principle the establishment of a commercial bank or a foreign bank branch after considering the opinions of relevant agencies.

In case of non-approval, the State Bank of Vietnam issues a document responding to the Preparatory Committee, clearly stating the reason for non-approval;

- Within 60 days from the receipt of the principle approval document for the establishment of a commercial bank or foreign bank branch, the Preparatory Committee prepares additional documents as regulated in Article 10, Clause 4 of Article 12, Clause 7 of Article 13, Clause 14 of Article 14 Circular 56/2024/TT-NHNN and submits via postal services or directly at the State Bank of Vietnam (One-stop department).

Beyond the aforementioned period, if the State Bank of Vietnam does not receive or receives incomplete additional documents, the principle approval document will automatically lose its validity.

Within 5 working days from the receipt of all additional documents, the State Bank of Vietnam provides a written confirmation of having received the complete additional documents.

Within 30 days from the receipt of all additional documents, the State Bank of Vietnam proceeds to issue the License as regulated.

In case the License is not issued, the State Bank of Vietnam issues a document responding to the Preparatory Committee, clearly stating the reason for not issuing the License.

More details can be found in Circular 56/2024/TT-NHNN effective from December 24, 2024.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE