Press Release on issuance of Circular No.50/2018/TT-NHNN
Hanoi, December 31, 2018 – The Governor of the State Bank of Vietnam (SBV) issued Circular No.50/2018/TT-NHNN stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches. The issuance of the new Circular aims at providing guidance on the implementation of the Law on Credit Institutions. Circular No.50/2018/TT- NHNN takes effect from February 15th, 2019.
The new Circular is composed of 03 Chapters and 22 Articles as follows:
Chapter I: General provisions
Chapter I is composed of 04 Articles (Article 1 to Article 4) regulating the scope, subjects of application; principles of compiling and sending dossiers; power and authority of the SBV.
Chapter II: Provisions on the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches
Chapter II is composed of 13 Articles (Article 5 to Article 17) stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches, including (i) A change in the name, location of the head office of a commercial bank; a change in the name, location of the head office of a foreign bank branch; (ii) recapitalization of a commercial bank or a foreign bank branch; (iii) Extension of the operational duration; (iv) Trading, transferring of the equity capital by an equity owner of a commercial one member limited liability bank; Trading, transferring of the equity capital by an equity owner of a commercial limited liability bank with two or more equity owners; (v) Trading, transferring of shares of a majority shareholder; trading, transferring of shares that turns one into a majority shareholder of a commercial bank; (vi) Suspension of business operations for 5 or more working days, excluding any operational suspension due to events of force majeure.
Chapter III: Enforcement
Chapter III is composed of 05 Articles (Article 18 to Article 22) stipulating the responsibilities of the Banking Supervision Agency, the SBV provincial and municipal branches, the commercial banks, the foreign bank branches, the effectiveness and the implementation.
Translated by Le Hang