Press release on the issuance of Circular No.51/2018/TT-NHNN
On December 31st, 2018, the Governor of the State Bank of Vietnam (SBV) issued Circular No.51/2018/TT-NHNN regulating the conditions, dossiers, sequences and procedures for accepting a credit institution to contribute equity or to buy shares.
The Circular is issued in line with the provisions of Article 103, Article 110 and Article 129 of the Law on Credit Institutions.
Circular No.51/2018/TT-NHNN is composed of 08 Articles with the following main substances:
a) A commercial banks contributing equity or buying shares in order to: (i) establish or acquire a domestic subsidiary or an affiliate company operating in the field of securities underwriting or securities brokerage; management and distribution of securities investment fund certificates; securities portfolio management, and buying/selling stocks; insurance; debt management and asset exploitation; remittances; foreign exchange and gold trading; intermediary payment services; credit information; (ii) acquiring a domestic subsidiary or an affiliate company operating in the areas of finance leasing; factoring; consumer credit; credit card issuance;
b) A commercial bank contributing equity or buying shares of another domestic enterprise operating outside the fields of insurance, securities, remittances, foreign exchange and gold trading, factoring, credit card issuance, consumer credit, intermediary payment services, credit information;
c) A financial company contributing equity or buying shares to establish or acquire a domestic subsidiary or an affiliate company operating in the fields of insurance, securities, debt management and asset exploitation;
d) Conversion of a debt into contributed equity in dealing with bad debts by a commercial bank in a domestic enterprise operating outside the fields of insurance, securities, remittances, foreign exchange and gold trading, factoring, credit card issuance , consumer credit, payment intermediary services, credit information.
This Circular takes effect from March 1st, 2019.
Translated by VA