Hanoi, Vietnam: Latest Procedures for Changing the Location of the Head Office of a Credit Institution that is a Cooperative

Latest Procedures for Changing the Location of the Head Office of a Credit Institution that is a Cooperative in Vietnam (Image from Internet)

What are credit institutions that are cooperatives under the law in Vietnam?

A credit institution that is a cooperative is a type of credit institution organized under the cooperative model, operating in the banking sector with the main goal of mutual assistance among members to effectively carry out production, business services, and improve living standards. A credit institution that is a cooperative includes cooperative banks and people’s credit funds.

The members of a credit institution that is a cooperative are as follows:

- Members of the cooperative bank include all people's credit funds and other legal entities contributing capital.

- Members of the people's credit fund include individuals, households, and legal entities contributing capital.

(Articles 80 and 81 of the Law on Credit Institutions 2024)

Latest Procedures for Changing the Location of the Head Office of a Credit Institution that is a Cooperative in Vietnam

(1) Application

Application for approval of changing the location of the head office of a credit institution that is a cooperative includes:

- A written request for approval to change the location of the head office according to the form in Appendix No. 02 issued with Circular 28/2024/TT-NHNN;

- The resolution of the General Assembly of members approving the change of location of the head office;

- Documents and materials proving that the credit institution that is a cooperative has the legal right to use or own the premises at the new location.

(2) Procedure for approval:

- The credit institution that is a cooperative prepares the proposal documentation as specified in (1) and submits it to the State Bank of Vietnam. If the documentation is incomplete, within 03 working days from the date of receipt, the State Bank of Vietnam will send a written request to the credit institution that is a cooperative to supplement the documentation;

- Within 20 days from the date of receipt of complete documentation, the State Bank of Vietnam issues a Decision to amend and supplement the License concerning the head office location of the credit institution that is a cooperative; in case of refusal, the State Bank of Vietnam responds in writing and clearly states the reasons.

(3) Within 12 months from the date the State Bank of Vietnam issues the Decision to amend and supplement the License, the credit institution that is a cooperative must operate at the new location. After this period, if the credit institution that is a cooperative does not operate at the new location, the Decision to amend and supplement the License will expire.

(4) Within 15 days before the commencement date at the new location, the credit institution that is a cooperative must send a written report on the expected start date of operations at the new location to the State Bank of Vietnam.

The credit institution that is a cooperative is not allowed to operate at the new location if the head office does not meet the requirements for the intended new location as committed in the written request to change the location of the head office.

(5) In case of a change in the address without changing the actual location of the head office, the credit institution that is a cooperative submits a written request for approval to change the address of the head office according to the form in Appendix No. 03 issued with Circular 28/2024/TT-NHNN.

Within 10 days from the date of receipt of the written request from the credit institution that is a cooperative, the State Bank of Vietnam issues a Decision to amend and supplement the License concerning the head office address of the credit institution that is a cooperative.

Legal basis: Article 6 of Circular 28/2024/TT-NHNN.

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