Press release on issuance of Circular No. 28/2021/TT-NHNN
Hanoi, December 31, 2021 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 28/2021/TT-NHNN amending and supplementing a number of Articles of Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the SBV Governor stipulating the Licensing, and the organization and operations of commercial banks, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations with banking operations in Vietnam.
Circular No. 28/2021/TT-NHNN is composed of four (04) Articles, with the following key substances:
- Amending the conditions applied to the founding member or owner that is a foreign credit institution in case of a 100% foreign-owned bank; the conditions for a parent bank of a foreign bank branch.
- Supplementing the requirements that the operations stated in the License that are subject to the laws on securities and/or the stock market shall have to comply with the respective laws on securities and/or the stock market, and other relevant provisions of law.
- Supplementing the operations that may be permitted in the License (including: supervisory banking operations in line with the law on securities, and the operation of providing clearing services, payment for securities trading in line with Point a of Paragraph 4, Article 56 of the Law on Securities). These operations shall have to be conducted in accordance with the laws on securities and/or the stock market, and other relevant provisions of law.
- The supplementation of additional operations on clearing services and payment for securities trading into the License of a commercial bank, a foreign bank branch in line with Point a of Paragraph 4, Article 56 of the Law on Securities shall be considered as the official written approval of the SBV as required by Point d of Paragraph 1, Article 152 of Decree No. 155/2020/ND-CP dated December 31, 2020 of the Government stipulating details of a number of Articles of the Law on Securities.
This Circular will take effect from March 1, 2022.
Translated by LK.