Circular No. 01/2022/TT-NHNN amending and supplementing certain articles of Circular No. 21/2013/TT-NHNN dated September 9, 2013, issued by the Governor of the State Bank of Vietnam on the network operation of commercial banks.

CIRCULAR

||| Amending and supplementing some articles of Circular No. 21/2013/TT-NHNN

||| dated September 9, 2013, issued by the Governor of the State Bank of Vietnam on the network operation of commercial banks

|||

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of the Law on Credit Institutions dated June 16, 2010 and the Law amending and supplementing some provisions of the Law on Credit Institutions dated November 20, 2017 (hereinafter referred to as the Law on Credit Institutions);

On the basis of the Enterprise Law dated June 17, 2020;

Decree No. Decision No. 16/2017/NĐ-CP dated February 17, 2017 of the Government stipulating functions, tasks, powers, and organizational structure các ngành kinh tế

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam issues this Circular to amend and supplement some articles of Circular No. provisions of Circular No. 21/2013/TT-NHNN dated September 9, 2013, issued by the Governor of the State Bank of Vietnam on the network operation of commercial banks.

Article 1. Amending and supplementing certain provisions of Circular number||| 21/2013/TT-NHNN

1. Amending and supplementing Clause 12 of Article 3 as follows:

"12. The inner city area of Ho Chi Minh City includes cities and districts under Ho Chi Minh City."

2. Amending and supplementing Clause 4 as follows:

“Article 4. Competence to approve the network of commercial banks

1. The Governor of the State Bank of Vietnam shall examine and approve or disapprove the establishment, cessation of operations, dissolution of branches, transaction offices, representative offices, and public service units within the country; the establishment of foreign branches, representative offices, and wholly-owned foreign banks.

2. The Director of the State Bank of Vietnam branch in provinces and centrally governed cities shall examine and approve or disapprove:

a) Changing the location of the head office of branches within the country, transaction offices within their jurisdiction (including changes before opening for business);

b) Ceasing operations of branches and transaction offices within their jurisdiction (in cases of voluntary cessation of operations);

c) Changing the management branch of transaction offices within their jurisdiction.

3. In certain specific cases, the Governor of the State Bank of Vietnam shall examine proposals for the establishment of branches, representative offices, public service units, and transaction offices within the country; foreign branches, representative offices, and wholly-owned foreign banks of commercial banks based on procedures and formalities stipulated in this Circular and in accordance with actual conditions to:

a) Serve the goals of economic, social, political, national defense, security, diplomatic development, and monetary policy in each period;

b) Support commercial banks in participating in handling people's credit funds under special control;

c) Implement restructuring plans for credit institutions under special control that have been approved."

3. Amend and supplement Clause 3 of Article 5 as follows:

"3. The documents of commercial banks shall be submitted to the State Bank of Vietnam and its branches through the One-Stop Service Center or via postal services or online (for documents specified in Clauses 1, 2, 3, 4, and 5 of Article 17, Article 20 of this Circular and for voluntarily ceased transaction office documents specified in Article 24 of this Circular)."

4. Amend and supplement Point g of Clause 1 of Article 6 as follows:

"g) Not being subject to measures prohibiting expansion of the network according to laws on administrative penalties in the field of currency and banking;"

5. Amend and supplement Clause 1 of Article 13 as follows:

"1. Except for cases stipulated in Clause 3 of Article 4 of this Circular, the State Bank of Vietnam shall examine and approve the establishment of branches and transaction offices within the country by commercial banks meeting the conditions; approve the establishment of representative offices and public service units within the country; foreign branches, representative offices, and wholly-owned foreign banks once per fiscal year. Commercial banks shall prepare documents in accordance with Article 12 of this Circular and submit them to the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) once before September 30 each year."

6. Amend and supplement Clause 3 of Article 13 as follows:

"3. Within 14 working days from the date of receipt of the document from the Banking Inspection and Supervision Authority, the People's Committee of the province or centrally governed city where the commercial bank intends to establish a branch within the country and the State Bank of Vietnam branch where the commercial bank intends to establish a branch within the country shall provide comments in writing on the proposed contents."

7. Amend and supplement Article 14 as follows:

“Article 14. Commencement of Branch Operations within the Country, Service Outlets

1. Requirements for Commencing Branch Operations within the Country, Service Outlets:

a) Possessing lawful ownership or usage rights to the branch office premises or service outlets; the premises must ensure storage of documents (except for service outlets), be convenient and safe for transactions, assets, have a complete security, protection system, uninterrupted power supply and communication systems, meeting fire prevention and extinguishing requirements;

b) The branch office must have a secure cash vault according to the standards prescribed by the State Bank. In cases where a commercial bank has more than one branch in the same province or centrally governed city, the commercial bank must have at least one branch with a cash vault as prescribed by the State Bank and must bear responsibility for transferring funds from branches without cash vaults to the branch with a cash vault after the end of each working day's transactions;

c) Branches and service outlets must have an information technology system connected online to the headquarters and service outlets connected online to the managing branch; ensuring that the information technology system and database operate continuously, safely, and securely for business activities;

d) Branches and service outlets must have a minimum management staff including the Branch Director, Deputy Director, Service Outlet Director or equivalent positions, and a team of business officers;

đ) The Branch Director or equivalent positions (in the case of commencing branch operations) must meet the criteria and conditions stipulated in Clause 5, Article 50 of the Law on Credit Organizations;

2. A commercial bank must submit a report to the State Bank branch where the domestic branch office or service outlet is located regarding the fulfillment of the requirements for commencing branch operations within the country, service outlets at least 15 working days before the planned date of commencement of branch operations within the country, service outlets;

3. After fulfilling the requirements set out in Clause 1 of this Article and completing the registration procedures for branch operations (for branches) or notifying the establishment of a business location (for service outlets) as prescribed by law, a commercial bank may commence branch operations within the country, service outlets;

4. Within seven working days prior to the planned date of commencement of branch operations within the country, service outlets as specified in this Article, a commercial bank must publish information on the State Bank’s electronic portal and the commercial bank’s website, or in a daily newspaper for three consecutive issues or on a Vietnamese online news site."

8. Amend and supplement Article 16 as follows:

“Article 16. Changing the Name of Domestic Branches, Service Outlets

A commercial bank decides on changing the name of domestic branches, changing the name of service outlets; it must submit a report to the State Bank branch where the domestic branch office or service outlet is located about this change within five working days from the date the domestic branch or service outlet operates under the new name.

9. Amend Point b Clause 4 Article 17 as follows:

"b) Within ten working days from the date of receiving all documents as prescribed in this Circular, the State Bank branch where the branch office or service outlet is located must send a document (including electronic documents) to the commercial bank approving or not approving the change of location for the branch office or service outlet; if not approved, the document sent to the commercial bank must clearly state the reasons."

10. Add Clause 6 Article 17 as follows:

"6. In cases where there is a change in the address of the domestic branch office or service outlet but no change in the location, the commercial bank must submit a request to the State Bank branch where the domestic branch office or service outlet is located to confirm the change in the address of the domestic branch office or service outlet.

Within fifteen working days from the date of receipt of the commercial bank's request, the State Bank branch where the domestic branch office or service outlet is located must send a document to the commercial bank confirming the change in the address of the domestic branch office or service outlet."

11. Amend Point b Clause 3 Article 20 as follows:

"b) Within fourteen working days from the date of receiving all documents as prescribed in this Circular, the State Bank branch where the branch office is located must send a document (including electronic documents) approving or not approving the commercial bank's proposal; if not approved, the document sent to the commercial bank must clearly state the reasons."

12. Amend Article 21 as follows:

“Article 21. Disclosure of Information on Changes

Within seven working days from the date of receiving the approval document of the State Bank allowing commercial banks to implement changes as prescribed in Clauses 1, 2, 3, 4, and 5 of Article 17, Article 20 of this Circular, or from the date of receiving the confirmation document of the State Bank regarding the change of branch office address within the country but without changing the location as prescribed in Clause 6 of Article 17 of this Circular, or from the date of implementing changes as prescribed in Articles 16, 18, and 19 of this Circular, commercial banks must disclose the content of the changes on their electronic information websites, at their headquarters, domestic branch offices, and related transaction rooms.

13. Amend and supplement Clause 2 of Article 24 as follows:

"2. Voluntary termination procedure for domestic branch offices:

a) Commercial banks shall prepare one set of documents in accordance with Clause 1 of this Article and submit them to the State Bank branch where the branch office is located;

b) Within forty-five days from the date of receiving complete documents as stipulated in this Circular, the State Bank branch where the branch office is located shall issue a document approving or not approving the request of the commercial bank; in case of non-approval, the document sent to the commercial bank shall clearly state the reasons."

14. Amend and supplement Point b of Clause 3 of Article 24 as follows:

"b) Within fourteen working days from the date of receiving complete documents as stipulated in this Circular, the State Bank branch where the transaction room is located shall issue a document (including electronic documents) approving or not approving the request of the commercial bank; in case of non-approval, the document sent to the commercial bank shall clearly state the reasons."

15. Amend and supplement Clause 4 of Article 24 as follows:

"4. Within forty-five days from the date of receiving the approval document of the State Bank branch where the branch office is located, as prescribed in Point b of Clause 2 and Point b of Clause 3 of this Article, commercial banks must carry out legal procedures in accordance with the provisions of the law to terminate the operations of the branch office and transaction room; they must submit a report to the State Bank (through the Banking Inspection and Supervision Agency) and the State Bank branch where the branch office and transaction room are located about the date of termination of operations."

16. Amend and supplement Clause 2 of Article 28 as follows:

"2. Annually, prepare a written report and send it directly or through postal services to the State Bank (through the Banking Inspection and Supervision Agency) the contents as specified in Appendix No. 02 issued together with this Circular, including:

a) Reporting deadline:

- The mid-year report: no later than July 31 each year.

- The annual report: no later than January 31 of the following year.

b) The data cut-off time for each reporting period corresponds to the accounting period as prescribed in the Accounting Law."

Article 2. Replacing and Abolishing Certain Phrases, Points, Clauses, Articles, and Appendices of Circular No. 21/2013/TT-NHNN1. Replace the phrase “Implementing fully and accurately the regulations on loan classification and risk provision as prescribed by the State Bank” with the phrase “Implementing fully and accurately the regulations on asset classification, risk provision levels, risk provision methods, and the use of provisions to handle risks in operations as prescribed by the State Bank at the time of application” at Point d of Clause 1 and Point d of Clause 2 of Article 6 of Circular No. 21/2013/TT-NHNN.

2. Replace the phrase “the ratio of bad debt to total outstanding loans at the end of December of the previous year before the application year” with the phrase “the ratio of bad debt at the end of December of the previous year before the application year and at the time of application” at Point d of Clause 1 of Article 6 of Circular No. 21/2013/TT-NHNN.

3. Replace the phrase “the ratio of bad debt to total outstanding loans” with the phrase “the ratio of bad debt” at Point d of Clause 2 of Article 6 of Circular No. 21/2013/TT-NHNN.

4. Replace the phrase “having the ratio of bad debt to total outstanding loans at the end of December of the previous year before the application year” with the phrase “having the ratio of bad debt at the end of December of the previous year before the application year and at the time of application” at Point b of Clause 2 of Article 10 of Circular No. 21/2013/TT-NHNN.

5. Replace the term “conditions” with the term “requirements” at Point a of Clause 3 of Article 17 of Circular No. 21/2013/TT-NHNN.

6. Replace Appendix No. 01 and Appendix No. 02 of Circular No. 21/2013/TT-NHNN with Appendix No. 01 and Appendix No. 02 issued together with this Circular.

7. Abolish Clause 14 of Article 3 and Point a of Clause 2 of Article 13 of Circular No. 21/2013/TT-NHNN.

örganization

Article 3. TThe Director of the Office, the Head of the Banking Inspection and Supervision Agency, the Heads of units under the State Bank of Vietnam, and commercial banks are responsible for organizing the implementation of this Circular. a) Report to the Ministry of Natural Resources and Environment on the results of training and upgrading, including listing the teaching staff participating in teaching, evaluating the participation of trainees in the training process, the results of organizing examinations for completing the training and upgrading program on land valuation business, the issuance of Certificates and the use of Certificate codes, summarizing the feedback from trainees on the quality of the training and upgrading program on land valuation business, and other relevant matters.

1. This Circular takes effect from March 15, 2022, except for the provisions in Clause 2 of this Article.

Article 4. Clause 1. This Circular takes effect from February 15, 2026; Circular No. 24/2013/TT-BKHCN dated September 30, 2013 of the Minister of Science and Technology on activities related to calibration, verification, testing of measuring instruments, and measurement standards shall cease to be effective from the date this Circular takes effect.

2. The provisions on commercial banks' online application forms and the State Bank branch's electronic approval documents as stipulated in this Circular take effect from December 1, 2022.

3. Abolish Clause 3 of Article 1 of Circular No. 14/2019/TT-NHNN dated August 30, 2019, which amends and supplements certain articles in Circulars concerning the periodic reporting system of the State Bank./.

3. REPEAL Clause 3 of Article 1 of Circular No. 14/2019/TT-NHNN dated August 30, 2019, which amends and supplements certain articles in Circulars concerning the regular reporting regime of the State Bank of Vietnam./.