Press Release on issuance of Circular No.19/2019/TT-NHNN
Hanoi, November 5, 2019 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 19/2019/TT-NHNN regulating the operational network of micro-finance institutions (MFIs). The new Circular takes effect from January 1, 2020 and shall replace Circular No.08/2009/TT-NHNN dated April 28, 2009 providing guidance on the operational network of MFIs.
The new Circular is composed of 5 Chapters and 33 Articles as follows:
Chapter I- General provisions. This Chapter is composed of 10 Articles (Article 1 to Article 10) regulating the scope, subjects of application; interpretation of terminology; power and authority for the approval of the operational network of MFIs; regulations on the transaction booths; the operational substances of a non-productive unit; the operational locations and names of MFIs’ branches and transaction offices; the number of branches; the principles of compiling and sending dossiers and notifications; regulations on the management of the branches, transaction offices and booths.
Chapter II- Establishment of a branch, transaction office, representative office and non-productive unit. This Chapter is composed of 8 Articles (Article 11 to Article 18) stipulating the conditions for the establishment of a branch, transaction office, representative office and non-productive unit; the dossiers, sequences for requesting approval of a branch, transaction office, representative office and non-productive unit; the transformation of a unit which is under a micro-finance project or program; the inauguration of operations; the announcements on the establishment.
Chapter III- Change in the name, location of the head office of a branch, transaction office, representative office and non-productive unit; a change in a branch which manages transaction offices. This Chapter is composed of 5 Articles (Article 19 to Article 23) regulating a change in the name, location of a branch, transaction office, representative office and non-productive unit; a change in a branch which manages transaction offices; announcements on the revised substances.
Chapter IV- Termination of business operations, liquidation of a branch, transaction office, representative office and non-productive unit. This Chapter is composed of 5 Articles (Article 24 – Article 28) regulating the evident termination of business operations, liquidation of a branch, transaction office, representative office and non-productive unit; the voluntary termination of business operations, liquidation of a branch, transaction office, representative office and non-productive unit; the compulsory termination of business operations, liquidation of a branch, transaction office, representative office and non-productive unit; announcements on the termination of business operations and liquidation.
Chapter III- Enforcement. This Chapter is composed of 5 Articles (Article 29 to Article 33) stipulating the responsibilities of the MFIs, the SBV provincial and municipal branches and the Banking Supervision Agency; the effectiveness and the implementation.
Translated by Le Hang