Requirements for launching operations of credit institutions in Vietnam

Requirements for launching operations of credit institutions in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

1. Disclosure of information about launch for operations in Vietnam

A credit institution, foreign bank’s branch or foreign representative office shall publish on the media of the State Bank and a Vietnamese daily newspaper for three consecutive issues or a Vietnamese e-newspaper for at least 30 days before the date on which operations are expected to be launched the following information:

- Its name and address of its head office;

- Number of and date of issuance of its license;

- Charter capital of the credit institution or provided capital of the foreign bank’s branch;

- Legal representative of the credit institution, Director General (Director) of the foreign bank’s branch or head of the foreign representative office;

- List of founding shareholders or capital contributors or owners of the credit institution with their respective holdings of shares/stakes;

- Date on which operations are expected to be launched.

(Article 33 of the Law on Credit Institutions 2024)

2. Requirements for launching operations of credit institutions in Vietnam

- A credit institution, foreign bank’s branch or foreign representative office issued with a license may only operate from the launch date.

- To launch operations, the credit institution or foreign bank’s branch issued with a license shall fully meet the following requirements:

+ The credit institution’s charter approved by a competent authority has been submitted to the State Bank;

+ It has full charter capital or provided capital; vault or head office that meets requirements under regulations of the Governor of the State Bank;

+ It has an organizational structure and an internal control and audit system in conformity with its type under this Law and other relevant laws;

+ Its information technology system meets managerial and operational requirements;

+ It has internal regulations on organization and operation of the Board of Directors, the Board of Members, the Board of Controllers and Director General (Director) and professional divisions at its head office; risk management; and operational network management;

+ Its charter capital or provided capital in Vietnamese dong shall be fully deposited into the frozen account without interests opened at the State Bank for at least 30 days before the launch date. Its charter capital or provided capital shall be released after the launch date;

+ It has disclosed information on launch of its operations under Article 33 of the Law on Credit Institutions 2024.

- The credit institution, foreign bank’s branch or foreign representative office shall launch its operations within 12 months from the date on which it obtains the license, except for force majeure events. After the aforesaid deadline, if it fails to do so, the issued license expires. The State Bank shall publish licenses which are expired on its web portal.

- The credit institution or foreign bank’s branch issued with the license shall notify the State Bank of requirements for launch of its operations specified in Clause 2 of Article 34 of the Law on Credit Institutions 2024 for at least 15 days before the launch date. The State Bank shall suspend the launch when such institution or branch fails to fully meet the requirements under Clause 2 of Article 34 of the Law on Credit Institutions 2024.

(Article 34 of the Law on Credit Institutions 2024)

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE