Press Release on issuance of Circular No.11/2019/TT-NHNN
Hanoi, August 2, 2019 – The Governor of the State Bank of Vietnam (SBV) issued Circular No. 11/2019/TT-NHNN stipulating special controls over credit institutions.
The issuance of the new Circular is aimed at providing guidance for the provisions in Articles 145, 145a and 151a of the Law on Credit Institutions, improving the legal basis for the restructuring process of the credit institutions under special controls.
The new Circular is composed of 5 Chapters and 25 Articles regulating the cases that a credit institution loses its affordability, or is at risk of unaffordability; loses solvency, or is at risk of insolvency; the authority of making decisions on the special controls over a credit institution; forms of the special controls; decisions on the special controls; announcement and publication of the special controls; the net value of the charter capital and the reserve funds, the recording a decrease in the charter capital of a commercial bank under special controls, which has been approved by the Government for a compulsory transfer; extension and termination of the special controls; the composition, structure, operational mechanism, tasks and powers of the Special Control Board.
The new Circular is applied to the credit institutions (except for Vietnam Bank for Social Policies) and other relevant organizations and individuals.
The new Circular also stipulates that the Special Control Boards, which have been established before the effective date of this new Circular, should continue to implement the substances in accordance with the issued decisions on special controls until these decisions are amended and supplemented.
The new Circular takes effect from October 1, 2019, and shall replace Circular No.07/2013/TT-NHNN of the SBV Governor dated March 14, 2013 on the special controls over credit institutions.
Translated by Le Hang