Press release on the issuance of Circular No. 25/2017/TT-NHNN
December 29, 2017 – The Governor of the State Bank of Vietnam (SBV) issued Circular No. 25/2017/TT-NHNN stipulating dossiers, sequences and procedures for the approval of the changes in non-bank credit institutions.
Circular No. 25/2017/TT-NHNN takes effect from February 26, 2018 and shall replace Circular No.06/2002/TT-NHNN dated December 23, 2002 of the SBV Governor guiding the implementation of Decree No.79/2002/ND-CP dated October 4, 2002 of the Government regulating the organizations and operations of finance companies, and Circular No.06/2005/TT-NHNN dated October 12, 2005 of the SBV Governor guiding the implementation of several substances as stipulated in Decree No.16/2001/ND-CP dated May 2, 2001 of the Government on the organizations and operations of finance leasing companies and Decree No.65/2005/ND-CP dated May 19, 2005 of the Government amending and supplementing some articles of Decree No.16/2001/ND-CP dated May 2, 2001 of the Government on the organizations and operations of finance leasing companies.
The new Circular is composed of 17 articles, with several changes as compared to Circular No.06/2002/TT-NHNN and Circular No. 06/2005/TT-NHNN, specifically as follows:
- Firstly, adding the justifying document related to the assessment of the need and the efficiency of recapitalization, financial capacity, and the commitment of utilizing the legitimate resources to increase the charter capital for specific cases.
- Secondly, supplementing that the dossiers, which are applied to the buyers and the transferees who shall become the owners, new limited partners, are the same as the ones for the owners, founding members of non-bank credit institutions in accordance with applicable laws.
- Thirdly, supplementing the dossiers, sequences and procedures needed for the approval of the purchase, sale and transfer of shares by major shareholders; or the purchase, sale and transfer resulting in the case that a major shareholder shall become an ordinary shareholder and vice versa.
- Fourthly, supplementing the dossiers, sequences and procedures needed for approving the suspension of business activities for five working days or more, with the exception of the suspension of operations due to the events of force majeure.
- Fifthly, supplementing the dossiers, sequences and procedures needed for the amendments and supplements in the License of a non-bank credit institution, except the change substances stipulated in Paragraph 1, Article 29 of the Law on Credit Institutions (as amended and supplemented).
The issuance of Circular No. 25/2017/TT-NHNN aims at simplifying administrative procedures with regard to the dossiers, sequences and procedures for the approval of the changes in non-bank credit institutions, creating the legal basis for non-bank credit institutions’ consistent implementation, in line with the Law on Credit Institutions and the Law amending and supplementing a number of articles of the Law on Credit Institutions, and their operational situations.
Translated by Le Hang