Vietnam: Principles of replacement of licenses and addition of business lines to licenses of non-bank credit institutions

Principles of replacement of licenses and addition of business lines to licenses of non-bank credit institutions​

The principles of replacement of licenses and addition of business lines to licenses of non-bank credit institutions are as follows:

- The State Bank of Vietnam (SBV) shall not approve the replacement of license if it covers business lines which a non-bank credit institution is not allowed to perform according to regulations of law at the time of application for replacement.

- SBV shall change names of business lines licensed in conformity with regulations in the Law on Credit Institutions 2024 of Vietnam and Appendices issued together with Circular 35/2024/TT-NHNN. The new license shall supersede all licenses and written approvals (relating to amended or modified contents of the license) issued by the SBV to the non-bank credit institution before the time of application for replacement.

- The addition of foreign exchange services to the license shall comply with SBV’s specific regulations and relevant laws.

- With regard to addition of other credit extension services and business lines related to banking operations specified in Appendices issued together with Circular 35/2024/TT-NHNN, the non-bank credit institution may render these services and lines after obtaining SBV’s approval; procedures for addition of such services and lines to the license shall comply with SBV’s specific regulations and relevant laws.

- In case where the non-bank credit institution applies for addition of business lines to the license and replacement of the license at the same time, SBV shall consider issuing a new license with the requested additions if the non-bank credit institution submits all of the documents specified in Clause 3 Article 7 of Circular 35/2024/TT-NHNN.

More details can be found in Circular 35/2024/TT-NHNN of the State Bank of Vietnam, which takes effect from July 1, 2024.

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