Vietnam’s new regulation on proportion of capital holding in microfinance institutions

Duy Thinh

15:16, 26/02/2018

The State Bank of Vietnam issued Circular No. 03/2018/TT-NHNN on licensing, organization and operation of microfinance institutions (MFIs).

Notably, according to Circular No. 03/2018/TT-NHNN of the State Bank of Vietnam, the proportion of capital holding is amended as follows:

- Domestic contributing members other than political organizations or socio-political organizations or foreign contributing members: The proportion may not exceed the shareholding of political organizations or socio-political organizations;

- Contributing member being an individual: The proportion shall not exceed 5% of the charter capital of the MFI;

- Contributing members and affiliated persons: The proportion of capital holding shall not exceed 50% of the charter capital of the MFI.

The proportion of capital holding of all contributing members being political organizations and socio-political organizations must be at least 25% of the charter capital of the MFI, which remains as currently regulated.

Circular No. 03/2018/TT-NHNN of the State Bank of Vietnam takes effect from April 15, 2018.

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