Press Release on issuance of Circular No.17/2018/TT-NHNN
Hanoi, August 14, 2018 – The Governor of the State Bank of Vietnam (SBV) issued Circular No.17/2018/TT-NHNN amending and supplementing a number of articles of the Circulars stipulating the licensing, the operational networks and the forex activities of credit institutions and foreign bank branches.
The issuance of the Circular No.17/2018/TT-NHNN aims at implementing the Scheme on cutting down and simplifying the business conditions within the state management scope of the SBV (promulgated in attachment with Decision No.1417/QD-NHNN dated July 9, 2018), and further facilitating the operations of the credit institutions and enterprises.
The new Circular is composed of eight articles, specifically as follows:
Article 1: Amending, supplementing and abolishing a number of articles of Circular No.40/2011/TT-NHNN dated December 15, 2011 stipulating the licensing and organizations, operations of commercial banks, foreign bank branches, representative offices of foreign credit institutions and other foreign organizations with banking operations in Vietnam. This aims at simplifying the conditions on founding shareholders, specifically: amending and supplementing Points dd, e and g of Paragraph 2 of Article 9; abolishing Points a, b and d of Paragraph 2 of Article 9; abolishing the wordings of “a,b” as written in Point g of Paragraph 2 of Article 9 and Paragraph 3 of Article 10.
Article 2: Abolishing Point i of Paragraph 1 of Article 6 of Circular No.21/2013/TT-NHNN dated September 9, 2013 by the SBV Governor regulating the operational networks of commercial banks.
Article 3: Abolishing Point a of Paragraph 2 of Article 10 of Circular No.21/2014/TT-NHNN dated August 14, 2014 by the SBV Governor guiding the scopes of forex activities, the conditions, sequences and procedures for the forex activities of credit institutions and foreign bank branches.
Article 4: Amending, supplementing and abolishing a number of articles of Circular No.30/2015/TT-NHNN dated December 25, 2015 by the SBV Governor stipulating the granting of licenses to non-bank credit institutions, specifically: amending and supplementing Paragraph 5 and Point a of Paragraph 6 of Article 11, abolishing Paragraphs 1, 2, 3 of Article 11.
Article 5: Abolishing Paragraph 6 of Article 8, Paragraph 1 of Article 25 of Circular No.31/2012/TT-NHNN dated November 26, 2012 by the SBV Governor on cooperative banks.
Article 6: Abolishing Point d of Paragraph 1 of Article 31 of Circular No.04/2015/TT-NHNN dated March 31, 2015 by the SBV Governor on people’s credit funds.
Articles 7, 8: Responsibilities for implementation and Effectiveness.
This new Circular takes effect from October 1, 2018.
Translated by Le Hang