Press release on issuance of Circular No. 16/2024/TT-NHNN
Hanoi, June 28, 2024 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 16/2024/TT-NHNN regulating the development and implementation to ensure consistency with the provisions on the limits for the capital contributions and the share purchase by the credit institutions, the subsidiary companies of the credit institutions as stipulated in Paragraph 5 of Article 137 of the 2024 Law on Credit Institutions.
The Circular is composed of 11 Articles and 01 Appendix, with the following basic requirements:
- The regulations on the development and implementation to ensure consistency with the provisions on the limits for the capital contributions and the share purchase by the credit institutions, the subsidiary companies of the credit institutions as stipulated in Paragraph 5 of Article 137 of the 2024 Law on Credit Institutions, including the following situations:
+ The case in which a credit institution owns a capital contribution or has purchased shares of a company or another credit institution, which is a related person of a large shareholder or a capital contributor of the former credit institution, that has occurred before July 1, 2024.
+ The case in which a subsidiary company of a credit institution owns a capital contribution or has purchased shares of another company or another credit institution, which is a shareholder or a capital contributor of the former credit institution, that has occurred before July 1, 2024.
+ The case in which a subsidiary company of a credit institution owns a capital contribution or has purchased shares of another company or another credit institution, which is a related person of a large shareholder or a capital contributor of the former credit institution, that has occurred before July 1, 2024.
- The regulating on the implementation roadmap, the report templates are included in Appendix attached to the Circular, with specific responsibilities for the implementation.
The Circular takes effect from August 15, 2024.
Translated by Hai Yen