Press release on the issuance of Circular No.09/2018/TT-NHNN
Hanoi, March 30, 2018 – The Governor of the State Bank of Vietnam (SBV) issued Circular No.09/2018/TT-NHNN regulating the operational network of the cooperative credit institutions. This Circular is aimed at providing guidance for the implementation of the Law on Credit Institutions, providing the legal basis for the establishment, termination of operations or dissolution of network of a cooperative credit institution.
Circular No.09/2018/TT-NHNN takes effect from June 15, 2018 and shall replace the regulations on the operational network of the People’s Credit Funds stipulated at the Regulations on issuance and withdrawal of the licenses for the establishment and operations of people’s credit funds, on the opening and termination of operations of transaction departments, branches, representative offices, trading offices and trading locations of people’s credit funds, on the separations, demergers, consolidations and mergers of people’s credit funds, and on liquidation of people’s credit funds under supervision of the SBV (referred as The Regulations) issued in attachment with Decision No.24/2006/QD-NHNN dated June 6, 2006 of the Governor of the SBV (Decision No.24) and Decision No.26/2008/QD-NHNN dated September 9, 2008 amending and supplementing a number of articles of the Regulations issued in attachment with Decision No.24.
In particular, there are some new substances to strengthen the operational control and reduce the administrative procedures, such as:
Circular No.09/2018/TT-NHNN is composed of 48 Articles, which are divided into 05 Chapters as follows:
Chapter I: General provisions:
Chapter I consists of 9 Articles (from Article 1 to Article 9) stipulating the scope, the subjects of application; interpretation of terminologies; the authority of the SBV; the operational contents for the non-business units and transaction offices of a cooperative bank and the provisions on transaction offices and service points of the people’s credit funds; the operational areas, the quantities, the name of a branch or transaction office; the principles for making and sending dossiers; the provisions on the network management.
Chapter II: Provisions on the operational network of a Cooperative Bank:
Chapter II consists of 21 Articles (Article 10 to Article 30), which are divided into 4 Sections.
Section 1 contains 5 Articles (Article 10 to Article 14) stipulating the provisions on the establishment of the branches, transaction offices, representative offices and non-business units of a cooperative bank.
Section 2 contains 2 Articles (Article 15 and Article 16) stipulating the inauguration of operations of the branches, transaction offices, representative offices and non-business units of a cooperative bank.
Section 3 contains 8 Articles (Article 17 to Article 24) regulating the changes in the names, locations of the branches, transaction offices, representative offices and non-business units of a cooperative bank; the changes of the branches managing transaction offices;
Section 4 contains 6 Articles (Article 25 to Article 30) stipulating the termination of operations, dissolution of the branches, transaction offices, representative offices and non-business units of a cooperative bank.
Chapter III: Provisions on the operational network of the People’s Credit Funds:
Chapter III consists of 12 Articles, which are divided into 2 Sections:
Section 1 contains 7 Articles (Article 31 to Article 37) regulating the establishment of the transaction offices, the inauguration of operations, the changes in the names and locations of transaction offices of the people's credit funds.
Section 2 contains 5 Articles (Article 38 to Article 42) stipulating the termination of operations, dissolution of the transaction offices of the people's credit funds.
Chapter IV: Implementation:
Chapter IV consists of 3 Articles (Article 43 to Article 45) regulating the responsibilities of the cooperative credit institutions, the State Bank branches in the provinces and centrally controlled cities, the Banking Supervision Agency.
Chapter V: Enforcement
Chapter V consists of 3 Articles (Article 46 and Article 48) stipulating the terms of enforcement including the transitional provisions, coning into force and the arrangement for the implementation of the Circular.
Translated by VA