Press release on the issuance of Circular No.46/2018/TT-NHNN
On December 28th 2018, the Governor of the State Bank of Vietnam (SBV) issued Circular No.46/2018/TT-NHNN stipulating the transitional deadlines, sequences and procedures for a major shareholder of a credit institution and the related persons of that major shareholder, who owns shares of 5% or more of the charter capital of another credit institution (hereinafter referred to as the relevant major shareholder group).
The Circular consists of 8 Articles, and providing guidance for Paragraph 6, Article 3 of the Law amending and supplementing a number of articles of the Law on Credit Institutions, which provides in details the transitional deadlines, sequences and procedures for the major related shareholder group owning shares beyond the limit, in line with the provisions of Paragraph 14, Article 1 of the Law amending and supplementing a number of articles of the Law on Credit Institutions, the responsibilities of the principal credit institution, the other credit institution, the major shareholders and the related persons of the major shareholder in the transition to the relevant major shareholder group. Accordingly, the principal credit institution shall coordinate with the major shareholders to review and determine the list of the relevant major shareholders owning shares of 5% or more of the charter capital of another credit institution; the credit institution shall then coordinate with the other credit institution, the relevant major shareholder group in developing a Corrective Plan, and implementing the Corrective Plan, ensuring that at the latest on December 31, 2020, the share ownership ratio of the relevant major shareholder group shall be in compliance with the provisions of the Law on Credit Institutions (amended and supplemented).
In order to ensure that the cases of share ownership exceeding the limit shall soon comply with the provisions of Paragraph 14, Article 1 of the Law amending and supplementing a number of articles of the Law on Credit Institutions, the Circular provides for penalties to be applied in case of failure to comply with the share ownership ratio.
This Circular takes effect from March 1st, 2019.
Translated by VA