Vietnam: Authority to approve the network of commercial banks from August 15, 2024

Authority to approve the network of commercial banks from August 15, 2024

(1) The Governor of the State Bank of Vietnam shall consider and approve the establishment, termination of operation, dissolution (except cases of voluntary termination of operation) of domestic branches; the establishment of foreign branches, representative offices, and subsidiary banks; and the conversion of the legal form of foreign subsidiary banks of commercial banks.

(2) The Chief Inspector and Supervisor of Banks shall consider and approve the establishment, termination of operation, dissolution (except cases of voluntary termination of operation) of domestic transaction offices, representative offices, and public service providers.

(3) Directors of the State Bank branches in centrally-run provinces and cities shall consider and approve:

- Changing the location of branch headquarters, transaction offices;

- Voluntarily terminating branch operations, transaction offices;

- Changing the managing branch of transaction offices.

In specific cases, the Governor of the State Bank of Vietnam shall consider and decide to approve:

- The establishment of domestic branches, representative offices, public service providers, transaction offices; foreign branches, representative offices, and subsidiary banks of commercial banks based on the procedures and regulations stipulated in Circular 32/2024/TT-NHNN and appropriate to actual conditions in order to:

+ Serve the objectives of economic, social, political, security, national defense, diplomatic development, and monetary policy management from time to time;

+ Support commercial banks in handling specially controlled people's credit funds.

- The conversion of transaction offices into domestic branches of commercial banks based on the documentation, conditions, procedures, and regulations for the establishment of domestic branches stipulated in this Circular, appropriate to actual conditions in order to implement the restructuring plan for credit institutions that have been approved by the competent authority;

- The contents regarding the network of activities of commercial banks under special control per the approved restructuring plan based on the procedures and regulations stipulated in Circular 32/2024/TT-NHNN.

More details can be found in Circular 32/2024/TT-NHNN of the State Bank of Vietnam, effective from August 15, 2024.

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