Directive No. 04/2000/CT-NHNN5 On Rectifying the Work of Inspecting Shareholders, Shares, Stocks, and Registered Capital of Joint Stock Commercial Banks

DIRECTIVE OF THE GOVERNOR OF THE STATE BANK

Regarding the rectification of shareholder, share, and stock capital inspection work,

of joint-stock commercial banks

In recent times, many joint-stock commercial banks have not strictly implemented regulations, and many branches of the State Bank have relaxed management over the provisions of the State Bank concerning shareholders, shares, stocks, and registered capital. To rectify the inspection and supervision work of the State Bank regarding the registered capital of joint-stock commercial banks, the Governor of the State Bank issues the following directive:

1. The Director of the State Bank Branch in provinces and cities must direct strict inspections of the capital contribution process of joint-stock commercial banks within their jurisdiction before the Governor of the State Bank approves an increase in registered capital to prevent situations where violations of laws and regulations of the State Bank still occur but are submitted for approval by the Governor of the State Bank. Any violations discovered due to inadequate inspection and oversight shall be fully the responsibility of the Director of the State Bank Branch before the Governor of the State Bank.

2. The Director of the State Bank Branch in provinces and cities must direct regular inspections and monitoring of changes in registered capital and shareholders of joint-stock commercial banks within their jurisdiction to promptly address and handle any violations that arise.

3. Every six months, the State Bank Branch in provinces and cities must report (six-monthly and annual reports) on changes in shareholders, particularly changes in share capital of board members, supervisors, major shareholders, and founding shareholders of joint-stock commercial banks within their jurisdiction.

4. Responsibilities of the State Bank at all levels:

The Director of the State Bank Branch in provinces and cities with headquarters of joint-stock commercial banks must strictly implement the above contents and bear full responsibility before the Governor of the State Bank for points 1, 2, and 3 mentioned above.

The Head of the Department of Commercial Banks, together with the Chief Inspector of the State Bank, is responsible for directing the banking inspection system on inspection, supervision, and handling of violations related to registered capital, shareholders, shares, and stocks at joint-stock commercial banks. They are also responsible for monitoring, summarizing, and proposing measures to the Governor of the State Bank to deal with joint-stock commercial banks that frequently violate or seriously violate laws and regulations of the State Bank regarding registered capital and shareholders, shares, and stocks./.