Circular No. 09/2018/TT-NHNN on the network operation of credit organizations that are cooperatives

CIRCULAR

Regulations on the network of operations of credit organizations that are cooperatives

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

Pursuant to the Law on Credit Organizations dated June 16, 2010;

Pursuant to the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Cooperatives dated November 20, 2012;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam hereby promulgates this Circular stipulating the network operation of credit organizations that are cooperatives.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates conditions, documents, and procedures for establishing, ceasing operations, dissolution, changing names, setting up branch offices, transaction offices, representative offices, and public service units of cooperative banks, transaction offices of people's credit funds; opening and ceasing operations of service introduction points of people's credit funds..

Article 2. Applicability

1. Credit organizations that are cooperatives include cooperative banks and people's credit funds.

2. Organizations and individuals related to establishing, ceasing operations, dissolution, changing names, setting up branch offices, transaction offices, representative offices, and public service units of cooperative banks, transaction offices of people's credit funds; opening and ceasing operations of service introduction points of people's credit funds.

Article 3. Definitions

In this Circular, the following terms shall be understood as follows:

1. The network operation of cooperative banks includes branches, transaction offices, representative offices, public service units within the country, and representative offices abroad.

2. The network of operations of people's credit funds includes service offices.

3. A branch is a subsidiary of a cooperative bank, having its own seal, and tasked with performing one or more functions of the cooperative bank as prescribed internally and by law.

4. A transaction office of a cooperative bank is a type of branch, a subsidiary of a cooperative bank, managed by a branch of the cooperative bank, having its own seal, located in the area of operation of the managing branch, and tasked with performing one or more functions of the cooperative bank as prescribed internally and by law.

5. A representative office is a subsidiary of a cooperative bank, having its own seal, and tasked with representing the cooperative bank through authorization. A representative office may not engage in business activities.

6. A public service unit is a subsidiary of a cooperative bank, having its own seal, and tasked with performing one or more support activities for the business operations of the cooperative bank.

7. A transaction office of a people's credit fund is a type of branch, a subsidiary of a people's credit fund, having its own seal, located in the area of operation of the people's credit fund, and tasked with performing one or more functions of the people's credit fund as prescribed internally and by law.

8. The application date is the day, month, and year recorded on the document proposing the establishment of branches, transaction offices, representative offices, and public service units of cooperative banks; transaction offices of people's credit funds.

Article 4. Authority of the Governor of the State Bank of Vietnam

Based on economic, social, political, security, defense development goals, and the orientation of the banking industry during each period, the Governor of the State Bank of Vietnam:

1. Considers approving or disapproving applications for establishing branches, transaction offices, representative offices, and public service units within the country, representative offices abroad; ceasing operations, dissolving branches; forcibly ceasing operations, dissolving transaction offices, representative offices, and public service units within the country of cooperative banks according to this Circular.

2. Delegates authority to the Director of the State Bank of Vietnam branch in provinces and centrally-administered cities (hereinafter referred to as the State Bank branch) where there is no Banking Inspection and Supervision Department:

a) Approving or disapproving changes in the location of branch offices and transaction offices of cooperative banks in the area (including cases of changing location before commencing operations);

b) Approving or disapproving cessation of operations, dissolution of transaction offices of cooperative banks in the area (in voluntary cessation of operations);

c) Approving or disapproving applications for establishing, changing locations, ceasing operations, and dissolving transaction offices of people's credit funds in the area;

d) Suspending commencement of operations of branch offices and transaction offices of cooperative banks, transaction offices of people's credit funds in the area if they have not met the requirements for commencing operations.

3. Delegates authority to the Director of the State Bank branch where there is a Banking Inspection and Supervision Department to approve or disapprove the establishment, change in location, cessation of operations, and dissolution of transaction offices of people's credit funds, and suspending commencement of operations of transaction offices of people's credit funds in the area.

4. Delegates authority to the Director of the Banking Inspection and Supervision Department (where there is a Banking Inspection and Supervision Department):

a) Approving or disapproving changes in the location of branch offices and transaction offices of cooperative banks in the area (including cases of changing location before commencing operations);

b) Approving or disapproving cessation of operations, dissolution of transaction offices of cooperative banks in the area (in voluntary cessation of operations);

c) Suspending commencement of operations of branch offices and transaction offices of cooperative banks in the area if they have not met the requirements for commencing operations.

Article 5. Content of activities of public service units, transaction offices of cooperative banks, and regulations on transaction offices and service introduction points of people's credit funds

1. Public service units of cooperative banks carry out one or more support activities for the business operations of cooperative banks, including:

a) Researching and applying banking technology for cooperative banks;

b) Training and enhancing professional skills and information technology techniques for staff of cooperative banks and member people's credit funds;

c) Storing databases, collecting, and processing information to serve the business operations of cooperative banks;

d) Other activities supporting the business operations of cooperative banks in compliance with legal provisions.

2. The total outstanding credit balance of a transaction office of a cooperative bank to a customer who is not a member people's credit fund must not exceed VND 1,000,000,000 (one billion dong) after fully meeting the capital adjustment needs of the people's credit fund.

3. The total outstanding credit balance of a transaction office of a people's credit fund to a customer must comply with the credit limit regulations stipulated in the Law on Credit Institutions and relevant laws and must not exceed VND 100,000,000 (one hundred million dong).

4. People's credit funds decide on opening and ceasing operations of service introduction points in their areas of operation based on the following contents:

a) Activities of service introduction points include: Researching, understanding, and introducing customers; Advising and guiding customers about products, services, loan application documents. Service introduction points may not raise funds, lend money, collect or pay interest, or engage in other business activities.

b) The People's Credit Fund shall be responsible for the operation of service introduction points, ensuring that the information provided and advice given to customers at these service introduction points are consistent, complete, and truthful.

c) The People's Credit Fund must enter into a contract regarding the location for opening a service introduction point, which includes specifying the responsibilities, authorities of the parties involved, and the duration of the contract's validity, or reach an agreement on the use of the location.

d) Within five days from the date of opening or ceasing operations of a service introduction point, the People's Credit Fund must notify in writing the State Bank branch where the People's Credit Fund's main office is located.

Article 6.Operating territory, branch name, transaction office name

1. Operating territory:

a) For cooperative banks:

(i) A cooperative bank branch operates within the scope of one or several provinces or centrally-administered cities as specifically stipulated in the approval document for establishing the branch issued by the State Bank;

(ii) A cooperative bank transaction office operates within the scope of one province or centrally-administered city and within the operating territory managed by the branch.

b) For the People's Credit Fund:

A People's Credit Fund transaction office operates within the operating territory of the People's Credit Fund.

2. Branch and transaction office names of cooperative banks and People's Credit Funds must comply with relevant legal provisions and be named as follows:

a) Branch name: Cooperative Bank - Branch "branch name";

b) Transaction office name:

(i) Cooperative Bank - Branch "branch name" (the managing branch) - Transaction Office "transaction office name" or Cooperative Bank - Transaction Office "transaction office name";

(ii) People's Credit Fund "name of People's Credit Fund" – Transaction Office "name of transaction office".

Article 7. Number of branches and transaction offices

1. For Credit Cooperatives:

a) In one province or centrally-administered city, a cooperative bank can establish one branch;

b) A newly established cooperative bank cannot have more than five branches in one year;

c) One branch does not manage more than three transaction offices.

2. For People's Credit Funds:

A People's Credit Fund can establish one transaction office in each commune, ward, or town.

Article 8. Principles for filing documents and sending notifications

1. Documents must be prepared in Vietnamese. Materials in the documents must be original copies or certified true copies or copies presented together with original documents for verification according to legal regulations. Each set of documents must include a list of materials.

2. Documents of credit organizations that are cooperatives sent to the State Bank, State Bank branch, and the Banking Inspection and Supervision Department must be signed by the legitimate representative of the cooperative credit organization.

3. Documents and notification letters of credit organizations that are cooperatives must be submitted to the State Bank, State Bank branch, and the Banking Inspection and Supervision Department either directly or through postal services.

Article 9. Regulations on network management

1. Cooperative banks and People's Credit Funds must establish Network Management Regulations to ensure safe and effective operations, commensurate with the management capacity of each type of network unit and in compliance with legal provisions, including the following minimum contents:

a) Organizational structure and personnel;

b) Content, scope of activities, accounting mechanisms;

c) Limits for each business activity for one customer, group of customers, and all customers; limits for each type of risk;

d) Management and supervision mechanisms of the headquarters, branches over objects within the network to ensure safe and effective operations, safe money transfers, and cash reserves;

đ) Standards and conditions for the Director, Deputy Director of branches, Head of transaction offices, Heads of specialized departments, Heads of public institutions, representatives' offices, or equivalent positions must ensure sufficient professional competence and ethical standards to manage operations as if they were equivalent positions at the headquarters.

2. The regulations must specify the operational limits for branches and transaction offices and ensure that transaction office activities are more restricted than those of branches, appropriate to their management capabilities and scale of operations.

3. The regulations must provide specific provisions for network units operating abroad.

4. The regulations must be reviewed periodically to ensure they remain appropriate with changes in network units and market conditions.

5. Within five days from the date of issuing the Network Management Regulations, cooperative banks must submit them to the State Bank (through the Banking Inspection and Supervision Department) and the State Bank branch where the cooperative bank's main office is located; People's Credit Funds must submit them to the State Bank branch where the People's Credit Fund's main office is located.

Chapter II
PROVISIONS ON THE NETWORK OF OPERATIONS OF COOPERATIVE BANKS

Section 1
Establishing branches, transaction offices, representative offices, and public institutions of cooperative banks

Article 10. Conditions for Establishing a Branch

1. There is a need to establish a branch to serve people's credit funds in the area where the branch is expected to be established.

2. The actual paid-in charter capital at the end of December of the year immediately preceding the year of the application must not be lower than the statutory capital requirement.

3. The business operations have been profitable according to the audited financial statements of the year immediately preceding the year of the application to establish a branch.

4. Not in violation of regulations on limits and ratios ensuring safety in operations as stipulated in the Law on Credit Institutions and guidelines of the State Bank continuously for twelve months up to the time of application.

5. Comply with the provisions on loan classification and risk reserve provisioning as prescribed by the State Bank at the end of December of the year immediately preceding the year of the application and at the nearest point in time to the application; the ratio of non-performing loans to total outstanding loans at the end of December of the year immediately preceding the year of the application and at the time of application does not exceed 3% or another ratio determined by the Governor of the State Bank for each period.

6. At the time of application, the Board of Directors and Supervisory Board have the required number and structure as prescribed by law, without being missing the General Director.

7. At the time of application, the cooperative bank has internal audit and internal control systems that ensure compliance with the provisions of the Law on Credit Institutions and related laws.

8. Have a regulation on network management as prescribed in Article 9 of this Circular.

9. Not subject to measures prohibiting expansion of the network as provided for in the law on post-supervision and inspection of credit institutions.

10. Ensure the number of branches as prescribed in point a and b of Clause 1, Article 7 of this Circular.

Article 11. Conditions for Establishing a Representative Office, Domestic Public Service Unit, and Overseas Representative Office

Cooperative banks proposing to establish representative offices, domestic public service units, and overseas representative offices must meet the conditions prescribed in Clause 5, 6, 7, 8, and 9 of Article 10 of this Circular.

Article 12. Conditions for Establishing a Transaction Office

1. Conditions for cooperative banks:

a) There is a need to establish a transaction office to meet the demand for capital adjustment and support for the activities of member people's credit funds in the area;

b) Meet the conditions prescribed in Clause 2, 3, 4, 5, 6, 7, 8, and 9 of Article 10 of this Circular.

2. Conditions for the branch expected to manage the transaction office:

a) Have a minimum operating period of twelve months from the opening date to the application date;

b) The ratio of non-performing loans to total outstanding loans at the end of December of the year immediately preceding the year of the application and at the time of application does not exceed 3% or another ratio determined by the Governor of the State Bank for each period;

c) Not subject to administrative penalties in the field of currency and banking in the form of fines within twelve months prior to the time of application;

d) The proposed transaction office must be located within the operating area of the branch;

đ) Ensure the number of transaction offices as prescribed in point c of Clause 1, Article 7.

Article 13. Documents for Requesting Approval to Establish a Branch, Transaction Office, Representative Office, and Domestic Public Service Unit, Overseas Representative Office

1. A document from the cooperative bank requesting the State Bank to approve the establishment of a branch, transaction office, representative office, and public service unit according to Model Appendix 01 issued together with this Circular.

2. Resolution of the Member Assembly or Resolution of the Board of Directors as prescribed in the Charter of the cooperative bank regarding the establishment of a branch, transaction office, representative office, and public service unit.

3. The establishment proposal must include at least the following contents:

a) For the establishment of a branch or transaction office:

(i) Full name in Vietnamese; abbreviated name in Vietnamese; address;

(ii) Reasons, needs for establishment, and reasons for choosing the establishment area;

(iii) Organizational structure: Organizational chart of the branch or transaction office;

(iv) Proposed key personnel (Director, Deputy Director, Head of Transaction Office, Heads of specialized departments or equivalent positions);

(v) Name, location of the branch expected to manage the transaction office; meeting the conditions of the branch expected to manage the transaction office as prescribed in Clause 2, Article 12 of this Circular (in case of establishing a transaction office);

(vi) Feasibility study: Analysis of the business environment, target market, business opportunities, and market penetration plans, and the needs to serve people's credit funds in the area;

(vii) Proposed business plan for the first three years, including at least: content of activities, main customer groups, projected balance sheet, profit and loss statement, basis for developing the plan, and explanation of the ability to implement the plan each year.

b) For establishing a public service unit, representative office:

(i) For establishing a public service unit, domestic representative office:

- Full name in Vietnamese, abbreviated name in Vietnamese, address, content of activities;

- Reasons, needs for establishment;

- Proposed key personnel (Director, Deputy Director, Heads of specialized departments or equivalent positions);

- Planned activities for the first three years.

(ii) For establishing an overseas representative office:

- Full name in Vietnamese and in the foreign language, abbreviated name in Vietnamese and in the foreign language (if applicable);

- Location: name of the country and specific address (if applicable);

- Reasons, needs for establishment, and reasons for choosing the country where the headquarters of the representative office is located;

- Relevant legal information: List of relevant regulations of the country where the headquarters of the representative office is located allowing foreign credit institutions to establish representative offices (name, number, date of the document).

Article 14. Procedure for Approving the Establishment of a Branch, Transaction Office, Representative Office, Domestic Public Service Unit, and Overseas Representative Office

1. The cooperative bank prepares one set of documents as prescribed in Article 13 of this Circular and sends it to the State Bank (through the Banking Inspection and Supervision Agency).

2. For applications to establish a branch or transaction office, within five working days from the date of receipt of the complete documents as prescribed in Article 13 of this Circular:

a) The State Bank issues a document to seek opinions from the People's Committee of the province or centrally-administered city on the necessity and the placement of the cooperative bank branch headquarters in the area.

b) The banking supervisory agency shall send a document to solicit opinions from the State Bank branch where the cooperative bank intends to establish a branch or transaction office (excluding the province or city where the Banking Inspection and Supervision Department is located) regarding the necessity of establishing additional branches or transaction offices in that area; compliance with conditions for the branch intended to manage the transaction office (in the case of establishing a transaction office).

3. Within ten working days from the date of receipt of the document from the State Bank, the banking supervisory agency and units specified in Clause 2 of this Article shall provide their comments in writing on the contents requested.

4. Within fifteen working days from the date of receipt of complete comments from the units specified in Clause 2 of this Article or from the date of receipt of complete application documents for establishing a representative office, domestic public service unit, or foreign representative office, the banking supervisory agency shall submit to the Governor of the State Bank a document approving or disapproving the establishment of branches, transaction offices, representative offices, or domestic public service units by the cooperative bank.

5. Within forty-five working days from the date of receipt of complete application documents for establishing branches or transaction offices from the cooperative bank, the State Bank shall issue a document approving or disapproving the establishment of branches or transaction offices by the cooperative bank; in cases of non-approval, the document shall clearly state the reasons.

Within twelve months from the date the State Bank issues an approval document, the cooperative bank must commence operations of the branch or transaction office. Beyond this period, the State Bank's approval document shall automatically become invalid.

6. Within thirty working days from the date of receipt of complete application documents for establishing a representative office or domestic public service unit, or a foreign representative office from the cooperative bank, the State Bank shall issue a document approving or disapproving the establishment of a representative office or domestic public service unit within the country, or a foreign representative office; in cases of non-approval, the document shall clearly state the reasons.

Within twenty-four months from the date the State Bank issues an approval document, the cooperative bank must commence operations of the representative office or domestic public service unit within the country, or the foreign representative office. Beyond this period, the State Bank's approval document shall automatically become invalid.

Section 2
Commencement of operations of branches, transaction offices, representative offices, and public service units of cooperative banks

Article 15. Commencement of operations of branches and transaction offices

1. Requirements for Commencing Branch Operations:

a) Possessing lawful ownership or usage rights over the branch headquarters; the headquarters must ensure storage of documents, convenience and safety for transactions and assets, have a complete security and protection system, uninterrupted power supply and communication systems, meeting fire prevention and explosion control requirements;

b) The branch headquarters must have a secure cash vault according to the standards prescribed by the State Bank. In cases where a cooperative bank currently has more than one branch in the same provincial or centrally-administered municipal area and has been approved by the State Bank before the effective date of this Circular, the cooperative bank must have at least one branch with a cash vault according to the standards prescribed by the State Bank and must be responsible for transferring funds from branches without cash vaults to the branch with a cash vault according to internal regulations of the cooperative bank;

c) The branch must have an information technology system connected online with the main headquarters; ensuring continuous, safe, and secure operation of the information technology system and database for business activities;

d) The branch must have a full management staff including the Branch Director or equivalent position and a team of business officers;

đ) The Branch Director or equivalent positions must meet the standards and conditions stipulated by the cooperative bank.

2. Requirements for Commencing Transaction Office Operations:

a) Possessing lawful ownership or usage rights over the transaction office headquarters; the headquarters must ensure storage of documents, convenience and safety for transactions and assets, have a complete security and protection system, uninterrupted power supply and communication systems, meeting fire prevention and explosion control requirements;

b) The transaction office must have a minimum secure cash box;

c) Having an information technology system connected online with the managing branch; ensuring continuous, safe, and secure operation of the information technology system and database for business activities;

d) Having a full management staff including the Transaction Office Manager or equivalent position and a team of business officers;

đ) The Transaction Office Manager or equivalent positions must meet the standards and conditions stipulated by the cooperative bank.

3. The cooperative bank shall notify the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the location of the branch or transaction office headquarters at least fifteen days prior to the planned commencement of operations about its compliance with the requirements for commencing operations as stipulated in Clause 1 (for branch operations) or Clause 2 (for transaction office operations) of this Article.

4. Within five working days from the date of receipt of the notification from the cooperative bank, the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) shall inspect and suspend the commencement of operations of the branch or transaction office if the cooperative bank has not met the requirements and request the cooperative bank to complete the requirements as stipulated in Clause 1 and Clause 2 of this Article.

The Banking Inspection and Supervision Department requests the State Bank branch (where there is a Banking Inspection and Supervision Department) to dispatch personnel to participate in the inspection team to verify compliance with the safe cash vault standards prescribed by the State Bank.

5. The cooperative bank shall implement registration procedures for branches and transaction offices in accordance with the law.

6. The cooperative bank shall commence operations of branches and transaction offices after completing the procedures as stipulated in Clause 5 of this Article and the announcement of information as stipulated in Article 24 of this Circular.

Article 16. Opening representative offices and non-business units

1. Cooperative banks decide on opening representative offices and non-business units within the country and notify the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) or the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at least 14 working days before the opening date.

2. Cooperative banks carry out the opening of representative offices abroad according to foreign laws and notify the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) at least 14 working days before the opening date.

3. Cooperative banks register the operation of representative offices in accordance with the law.

Section 3
Changing the name, location of branch, transaction office, representative office, non-business unit; changing the branch managing the transaction office of cooperative banks

Article 17. Changing the name of a branch

Cooperative banks decide on changing the name of a branch and notify the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) or the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the branch's headquarters within five working days from the date of the decision to change.

Article 18. Changing the location of the branch's headquarters

1. Cooperative banks must meet the following requirements when changing the location of the branch's headquarters (including changes before opening):

a) Conditions:

(i) Cooperative banks can only change the location of the branch's headquarters within the approved operating area of the branch by the State Bank;

(ii) The conditions stipulated in points a, b, and c of Clause 1 of Article 15 of this Circular.

b) Documents:

(i) A document from the cooperative bank requesting approval for changing the location of the branch's headquarters, detailing compliance with the conditions specified in point a of this clause and specifying the new location of the branch's headquarters;

(ii) Resolution of the Member Assembly or the Board of Directors approving the change of the branch's headquarters location as provided in the Charter;

(iii) Documents proving compliance with the conditions specified in point a of this clause.

2. Procedure:

a) The cooperative bank prepares one set of documents as stipulated in point b of Clause 1 of this Article and sends it to the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the branch's headquarters;

b) Within ten working days from the date of receipt of the complete documents as stipulated in point b of Clause 1 of this Article, the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the branch's headquarters will inspect the proposed location and issue a document to the cooperative bank approving or not approving the change of the branch's headquarters location; if not approved, the document must specify the reasons.

The Banking Inspection and Supervision Department requests the State Bank branch (where there is a Banking Inspection and Supervision Department) to dispatch personnel to participate in the inspection team to verify compliance with the safe cash vault standards prescribed by the State Bank.

3. Within twelve months from the date the State Bank branch or the Banking Inspection and Supervision Department issues the approval document, the cooperative bank branch must operate at the approved location. If the branch does not operate at the approved location beyond this period, the approval document from the State Bank branch or the Banking Inspection and Supervision Department becomes automatically invalid.

4. In cases where the address of the branch's headquarters changes due to administrative boundary adjustments (without changing the location of the headquarters), the cooperative bank must request the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) to confirm the address change. The cooperative bank's request must be accompanied by documents proving or confirmed by the competent administrative authority regarding the address change.

Within five working days from the date of receiving the request as stipulated above, the State Bank branch or the Banking Inspection and Supervision Department at the branch's headquarters will send a document to the cooperative bank confirming the change of the branch's headquarters address.

Article 19. Changing the name of a transaction office

Cooperative banks decide on changing the name of a transaction office and notify the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) or the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the transaction office's headquarters within five working days from the date of the decision to change.

Article 20. Changing the location of the transaction office's headquarters

1. Cooperative banks must meet the following requirements when changing the location of the transaction office's headquarters (including changes before opening):

a) Conditions:

(i) Cooperative banks can only change the location of the transaction office's headquarters within the approved operating area of the transaction office by the State Bank;

(ii) The conditions stipulated in points a, b, and c of Clause 2 of Article 15 of this Circular.

b) Documents:

(i) A document from the cooperative bank requesting approval for changing the location of the transaction office's headquarters, detailing compliance with the conditions specified in point a of this clause and specifying the new location of the transaction office's headquarters;

(ii) Resolution of the Board of Directors or a document from the authorized level of the cooperative bank as provided in the Charter approving the change of the transaction office's headquarters location;

(iii) Documents proving compliance with the conditions specified in point a of this clause.

2. Procedure:

a) The cooperative bank prepares one set of documents as stipulated in point b of Clause 1 of this Article and sends it to the Banking Inspection and Supervision Department or the State Bank branch (where there is no Banking Inspection and Supervision Department) at the transaction office's headquarters;

b) Within ten working days from the date of receiving complete files as prescribed at point b, Clause 1 of this Article, the Banking Inspection and Supervision Department or the State Bank Branch (where there is no Banking Inspection and Supervision Department) where the proposed office location is situated shall conduct an inspection of the proposed office location and issue a document to the cooperative bank approving or disapproving the change of the office location; in case of disapproval, the document must clearly state the reasons.

The Banking Inspection and Supervision Department requests the State Bank Branch (where there is a Banking Inspection and Supervision Department) to dispatch staff to participate in the inspection team to verify compliance with the standard requirements for safe cash storage facilities at the proposed office location in cases where the cooperative bank's office has a cash vault.

3. Within twelve months from the date the State Bank Branch or the Banking Inspection and Supervision Department issues a document approving the cooperative bank's branch, the cooperative bank's branch must commence operations at the approved location. Beyond this period, if the cooperative bank's branch does not operate at the approved location, the approval document issued by the State Bank Branch or the Banking Inspection and Supervision Department shall automatically become invalid.

4. In cases where the address of the office location changes due to administrative boundary adjustments (without changing the office location itself), the cooperative bank shall submit a document requesting the Banking Inspection and Supervision Department or the State Bank Branch (where there is no Banking Inspection and Supervision Department) to confirm the address change. The cooperative bank's request document shall be accompanied by supporting documents or confirmation from the competent administrative authority regarding the aforementioned address change.

Within five working days from the date of receipt of the request document as prescribed above, the State Bank Branch or the Banking Inspection and Supervision Department where the office location is situated shall issue a document to the cooperative bank confirming the address change of the office location.

Article 21. Change of name, location of representative office, domestic public service unit, foreign representative office

1. The cooperative bank decides on the change of name, location of the representative office, domestic public service unit, and foreign representative office in accordance with Vietnamese and foreign laws.

2. The cooperative bank shall notify the State Bank (through the Banking Inspection and Supervision Agency) and the Banking Inspection and Supervision Department or the State Bank Branch (where there is no Banking Inspection and Supervision Department) where the representative office or domestic public service unit is located about the change of name and location within five working days from the date of the decision to change.

In cases where the location of the representative office or domestic public service unit changes to a different province or centrally-administered city, the cooperative bank shall notify the Banking Inspection and Supervision Department and the State Bank Branch (where there is no Banking Inspection and Supervision Department) where the previous and new representative office or public service unit locations are situated.

3. The cooperative bank shall notify the State Bank (through the Banking Inspection and Supervision Agency) about the change of name and location of the foreign representative office within five working days from the date of the decision to change.

Article 22. Change of name of branch, transaction office, representative office, domestic public service unit, foreign representative office in the event of restructuring of the cooperative bank

The change of name of branch, transaction office, representative office, domestic public service unit, and foreign representative office in the event of restructuring of the cooperative bank shall be carried out in accordance with the regulations of the State Bank on restructuring of credit institutions.

Article 23. Change of branch managing transaction office

The cooperative bank decides on the change of branch managing the transaction office when meeting the conditions stipulated in Clause 2 of Article 12 of this Circular and shall notify the Banking Inspection and Supervision Department or the State Bank Branch (where there is no Banking Inspection and Supervision Department) where the current managing branch and the receiving branch are located within five working days from the date of the decision to change.

Within five working days from the date of receipt of the cooperative bank's notification regarding the change of branch managing the transaction office, the Banking Inspection and Supervision Department or the State Bank Branch (where there is no Banking Inspection and Supervision Department) where the receiving branch is located shall inspect and require the cooperative bank not to change the branch managing the transaction office if the receiving branch does not meet the conditions stipulated in this Circular.

Article 24. Information Disclosure

1. Within seven working days from the date of changing the name of the branch or transaction office and from the date of receiving the approval document of the State Bank Branch or the Banking Inspection and Supervision Department approving the change of the branch location or transaction office location, the cooperative bank shall publish the information on the State Bank's communication means and in three consecutive daily newspapers or online news sites in Vietnam and inform the people's credit funds in the area.

2. Within seven working days before the planned opening day of the branch, transaction office, or representative office, the cooperative bank shall publish the information on the State Bank's communication means and in three consecutive daily newspapers or online news sites in Vietnam and inform the people's credit funds in the area.

Section 4
Termination of operations, dissolution of branches, transaction offices, representative offices, public service units of cooperative banks

Article 25. Termination of operations, dissolution of branches, transaction offices, representative offices, public service units

1. Branches, transaction offices, representative offices, and affiliated units shall terminate operations and be dissolved in the following cases:

a) Automatic termination of operations and liquidation;

b) Voluntary termination of operations and liquidation;

c) Compulsory termination of operations and liquidation.

2. The overseas representative office of the cooperative bank ceases operations and dissolves in accordance with the laws of the country where its headquarters is located.

3. The cooperative bank shall be responsible for:

a) Settling assets, rights, obligations, and related interests of branches, transaction offices, representative offices, and public service units within the country, and overseas representative offices that cease operations and dissolve in accordance with the law;

b) Storing certificates, documents, and files of branches, transaction offices, representative offices, and public service units within the country, and overseas representative offices that cease operations and dissolve, as well as documents related to the cessation of operations and dissolution;

c) Implementing legal procedures to cease operations and dissolve branches, transaction offices, representative offices, and public service units within the country, and overseas representative offices in accordance with the law.

Article 26. Automatically ceasing operations and dissolving branches, transaction offices, representative offices, and public service units

1. Branches, transaction offices, representative offices, and public service units within the country, and overseas representative offices automatically cease operations and dissolve when the cooperative bank ceases operations and dissolves.

2. Procedures for automatic cessation of operations and dissolution of branches, transaction offices, representative offices, and public service units within the country, and overseas representative offices shall be carried out in accordance with the law.

Article 27. Voluntary cessation of operations and dissolution of branches, transaction offices, public service units, and representative offices within the country

1. Documents for voluntary termination of operations and dissolution of branches, transaction offices:

a) A document from the cooperative bank proposing the cessation of operations and dissolution of branches, transaction offices, stating the reasons for cessation of operations and dissolution, the name and address of the branch, transaction office being ceased and dissolved, and the commitment to settle assets, rights, obligations, and related interests of the branch, transaction office being ceased and dissolved;

b) Resolution of the Member Assembly or the Board of Directors of the cooperative bank in accordance with the Charter regarding the cessation of operations and dissolution of branches, transaction offices.

2. Procedure for voluntary cessation of operations and dissolution of branches:

a) The cooperative bank prepares one set of documents in accordance with Clause 1 of this Article and sends it to the State Bank of Vietnam (through the Banking Inspection and Supervision Authority);

b) Within thirty working days from the date of receipt of complete documents in accordance with Clause 1 of this Article, the State Bank of Vietnam issues a document approving or not approving the cooperative bank's proposal; if not approved, the document must clearly state the reasons.

3. Procedure for voluntary cessation of operations and dissolution of transaction offices:

a) The cooperative bank prepares one set of documents in accordance with Clause 1 of this Article and sends it to the Banking Inspection and Supervision Department or the State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Department) at the location of the transaction office;

b) Within fourteen working days from the date of receipt of complete documents in accordance with Clause 1 of this Article, the Banking Inspection and Supervision Department or the State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Department) at the location of the transaction office issues a document approving or not approving the cooperative bank's proposal; if not approved, the document must clearly state the reasons.

4. Within forty-five days from the date of the State Bank of Vietnam's approval document on the cessation of operations and dissolution of branches, or the State Bank of Vietnam branch's or Banking Inspection and Supervision Department's approval document on the cessation of operations and dissolution of transaction offices, the cooperative bank must carry out legal procedures in accordance with the law to cease operations and dissolve the branch, transaction office, and submit a report to the State Bank of Vietnam (Banking Inspection and Supervision Authority) and the State Bank of Vietnam branch at the location of the branch for the cessation of operations and dissolution of the branch, or the State Bank of Vietnam branch and Banking Inspection and Supervision Department at the location of the transaction office for the cessation of operations and dissolution of the transaction office, specifying the specific time and results of the cessation of operations and dissolution.

5. Within five working days from the date of cessation of operations and dissolution of representative offices and public service units, the cooperative bank must submit a report to the State Bank of Vietnam (through the Banking Inspection and Supervision Authority), the State Bank of Vietnam branch at the main office location of the cooperative bank, and the State Bank of Vietnam branch at the location of the representative office, public service unit, detailing the reasons, date of cessation of operations and dissolution.

Article 28. Forced cessation of operations and dissolution of branches, transaction offices, public service units, and representative offices within the country

1. The Governor of the State Bank of Vietnam has the authority to force the cessation of operations and dissolution of branches, transaction offices, public service units, and representative offices within the country of the cooperative bank.

2. Branches, transaction offices, public service units, and representative offices within the country of the cooperative bank will be forced to cease operations and dissolve if evidence proves that the application documents for establishing branches, transaction offices, public service units, and representative offices within the country do not meet the establishment conditions.

3. Upon discovering cases as stipulated in Clause 2 of this Article, the State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Department) at the location of the branch, transaction office, public service unit, and representative office within the country of the cooperative bank shall issue a document stating the reasons and send it to the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) requesting the cessation of operations and dissolution of the branch, transaction office, representative office, and public service unit of the cooperative bank.

4. Within fourteen working days from the date of receipt of the document from the State Bank of Vietnam branch or during the inspection and supervision process discovering cases as stipulated in Clause 2 of this Article, the Banking Inspection and Supervision Authority shall submit a document to the Governor of the State Bank of Vietnam requiring the cooperative bank to cease operations and dissolve branches, transaction offices, public service units, and representative offices within the country.

5. Within ninety days from the date the State Bank issues a document requesting the cooperative bank to cease operations, dissolve branches, transaction offices, affiliated units, and representative offices within the country, the cooperative bank must complete the cessation of operations and dissolution of branches, transaction offices, affiliated units, and representative offices within the country; submit a report to the State Bank detailing the specific time and results of ceasing operations and dissolving.

6. In cases where there are objections to the State Bank's requirements for mandatory cessation of operations and dissolution of branches, transaction offices, affiliated units, and representative offices within the country, the cooperative bank shall follow the current legal procedures for lodging complaints.

Article 29. Cessation of operations and dissolution of representative offices abroad

1. The cooperative bank shall implement the cessation of operations and dissolution of representative offices abroad in accordance with foreign laws and relevant provisions of Vietnamese law.

2. At least fourteen working days before the cessation of operations and dissolution of representative offices abroad, the cooperative bank must submit a report to the State Bank (through the Banking Inspection and Supervision Authority), the State Bank branch where the cooperative bank’s headquarters is located, specifying the reasons and the time of cessation of operations and dissolution.

Article 30. Information Disclosure

Within seven working days from the date of cessation of operations and dissolution of branches, transaction offices, affiliated units, and representative offices within the country, and representative offices abroad (except in cases of automatic cessation of operations and dissolution pursuant to Article 26 of this Circular), the cooperative bank shall publicly announce and post notices regarding the cessation of operations and dissolution on its website, at its headquarters, and at the branch managing the transaction office (in the case of dissolution of a transaction office) of the cooperative bank, publish in central and local newspapers, and notify credit unions in the area (except in cases of dissolution of representative offices and affiliated units).

1. The name and address of the branches, transaction offices, affiliated units, and representative offices within the country, and representative offices abroad that are ceasing operations and being dissolved.

2. Date of termination of operations and dissolution.

3. The cooperative bank's responsibility for assets, rights, obligations, and related interests of the branches, transaction offices, affiliated units, and representative offices within the country, and representative offices abroad that are ceasing operations and being dissolved.

Chapter III
PROVISIONS ON THE NETWORK OF OPERATIONS OF THE PEOPLE'S CREDIT FUND

Section 1
Establishment of transaction offices, commencement of operations, change of name, and location of the headquarters of credit union transaction offices

Article 31. Conditions for Establishing a Transaction Office

1. Credit unions classified as good or better according to the State Bank's regulations of the previous year compared to the year they request and the results of inspections, supervision, and independent audits at the time of request (if applicable).

2. Operating profitably based on the audited financial statements of the previous year adjacent to the year requested for establishment of a transaction office or profitable operating results based on financial statements when the State Bank has not yet required independent auditing.

3. Not violating the limits and ratios for ensuring safety in credit union operations as stipulated by the State Bank continuously for twelve months prior to the request date..

4. Properly implementing the regulations on loan classification and risk reserve provisioning as stipulated by the State Bank at December 31 of the previous year compared to the year requested and at the nearest point in time to the request date.

5. The ratio of non-performing loans to total outstanding loans at December 31 of the previous year compared to the year requested and at the request date does not exceed three percent or another ratio determined by the Governor of the State Bank during each period.

6. At the request date, the Board of Directors and Supervisory Board have the number and structure as prescribed by law, without a missing Director.

7. At the request date, the credit union has internal audit and an internal control system ensuring compliance with the Law on Credit Organizations and relevant current legal provisions.

8. Not subject to measures prohibiting expansion of the network under the law on post-inspection and supervision measures for credit organizations and foreign bank branches.

9. Ensuring the number of transaction offices as prescribed in Clause 2, Article 7 of this Circular.

10. Having a regulation on network management as prescribed in Article 9 of this Circular.

Article 32. Documents for Requesting Approval to Establish a Transaction Office

1. A document from the credit union requesting the State Bank branch to approve the establishment of a transaction office in accordance with Model Appendix 02 issued together with this Circular.

2. Resolution of the Member Assembly or the Board of Directors' resolution in accordance with the Charter regarding the establishment of a transaction office.

3. The project for establishing a transaction office, which must include at least the following contents:

a) Full name in Vietnamese; abbreviated name in Vietnamese; address; scope of activities (the scope of activities must comply with the provisions of the Law on Credit Organizations and guidance from the State Bank); main customer groups;

b) Reasons for establishment and reasons for choosing the establishment area;

c) Organizational structure: Organization chart of the transaction office;

d) Proposed key personnel (Head of the transaction office, Heads of specialized departments or equivalent positions);

đ) Proposed business plan for the first three years, including at least: projected balance sheet; income statement; basis for formulating the plan and explanation of the feasibility of implementing the plan each year.

Article 33. Procedure for Approving the Establishment of a Transaction Office

1. The credit union prepares one set of documents in accordance with Article 32 of this Circular and sends it to the State Bank branch.

2. Within five working days from the date of receiving the complete set of documents as stipulated in Article 32 of this Circular, the State Bank branch shall issue a document seeking opinions from the following entities:

a) People's Committee of the commune, ward, town (hereinafter referred to as the People's Committee of the commune) where the credit union plans to establish the transaction office headquarters regarding the necessity and proposed location for the transaction office headquarters.

b) The Department of Banking Inspection and Supervision (for provinces or cities where the Department of Banking Inspection and Supervision is located) regarding whether the people's credit cooperative meets the conditions as prescribed in Article 31 of this Circular.

3. Within seven working days from the date of receipt of the document from the State Bank branch, the units specified in Clause 2 of this Article shall provide their comments in writing on the content requested.

4. Within twenty-five working days from the date of receipt of all documents as prescribed in Article 32 of this Circular, the State Bank branch shall issue a document approving or not approving the establishment of a service transaction office by the people's credit cooperative; in case of non-approval, the document must specify the reasons.

5. Within twelve months from the date of approval document issued by the State Bank branch, the people's credit cooperative must commence operations of the approved service transaction office. Beyond this period, the approval document of the State Bank branch shall automatically become invalid.

Article 34. Commencement of Service Transaction Office Operations

1. Requirements for commencement of operations:

a) Possessing lawful ownership or right to use the premises of the service transaction office; the premises must be convenient and safe for transactions and assets, equipped with a complete security and protection system, uninterrupted power supply and communication systems, meeting fire prevention and explosion control requirements;

b) Having a secure cash box;

c) Having an information technology management system that ensures effective control by the main office over the service transaction office;

d) The service transaction office must have a minimum staff including the Head of the Service Transaction Office or equivalent position and a team of professional staff.

The Head of the Service Transaction Office or equivalent positions in the people's credit cooperative must meet the standards and conditions as stipulated by the people's credit cooperative.

2. The people's credit cooperative shall send a written notice to the State Bank branch about having met the requirements for commencing operations as prescribed in Clause 1 of this Article at least fifteen days before the planned commencement date.

3. Within five working days from the date of receipt of the notice from the people's credit cooperative, the State Bank branch shall inspect and suspend the commencement of operations of the service transaction office if it has not met the requirements and request the people's credit cooperative to complete according to the provisions of Clause 1 of this Article.

4. The people's credit cooperative shall register the operation of the service transaction office in accordance with current laws.

5. The people's credit cooperative shall commence the service transaction office after completing the procedures as prescribed in Clause 4 of this Article and the announcement of information as prescribed in Article 37 of this Circular.

Article 35. Changing the name of a transaction office

The people's credit cooperative shall decide on changing the name of the service transaction office and notify the State Bank branch and the Department of Banking Inspection and Supervision (where the Department of Banking Inspection and Supervision is located) of this change within five working days from the date of the decision to change.

Article 36. Change of Location of Service Transaction Office Premises

1. When changing the location of the premises of the service transaction office, the people's credit cooperative must comply with:

a) Conditions:

(i) The people's credit cooperative may only change the location of the premises of the service transaction office within the operational area defined in the License for Establishment and Operation of the People's Credit Cooperative issued by the State Bank and as prescribed in Clause 2 of Article 7 of this Circular;

(ii) The conditions prescribed in Point a, b, and c of Clause 1 of Article 34 of this Circular.

b) Documents:

(i) A document from the people's credit cooperative requesting approval to change the location of the premises of the service transaction office, detailing compliance with the conditions prescribed in Point a of this clause and specifying the proposed location of the premises of the service transaction office;

(ii) Resolution of the Member Assembly or the Management Board of the people's credit cooperative as prescribed in the Charter approving the change of the location of the premises of the service transaction office;

(iii) Documents proving compliance with the conditions prescribed in Point a of Clause 1 of this Article.

2. Procedure:

a) The people's credit cooperative shall prepare one set of documents as prescribed in Point b of Clause 1 of this Article and submit it to the State Bank branch;

b) Within ten working days from the date of receipt of all documents as prescribed in Point b of Clause 1 of this Article, the State Bank branch shall inspect the proposed location of the premises of the service transaction office and issue a document to the people's credit cooperative approving or not approving the change of location of the premises of the service transaction office; in case of non-approval, the document must specify the reasons.

3. Within twelve months from the date of the approval document issued by the State Bank branch, the service transaction office of the people's credit cooperative must operate at the approved location. If the service transaction office does not operate at the approved location beyond this period, the approval document of the State Bank branch shall automatically become invalid.

4. In cases where the change of address of the premises of the service transaction office is due to administrative boundary changes (without changing the location of the premises of the service transaction office) and complies with the provisions of Clause 2 of Article 7 of this Circular, the people's credit cooperative shall prepare and submit one set of documents to the State Bank branch requesting approval for the change, including:

a) A document from the people's credit cooperative requesting a change of address for the premises of the service transaction office, clearly stating the reason for the change of address;

b) A document proving or confirming by the competent administrative authority regarding the change of address mentioned above.

Within five working days from the date of receipt of all documents as prescribed above, the State Bank branch shall issue a document to the people's credit cooperative approving the change of address for the premises of the service transaction office.

Article 37. Information Disclosure

Within seven working days before the planned opening date of the transaction room's operations, within seven working days from the date of changing the transaction room's name, or from the date of receiving the approval document of the State Bank branch regarding the change of the transaction room's location, the people's credit cooperative must publish on the information media of the State Bank and in three consecutive issues of a daily newspaper or on a Vietnamese online news site, and post at the People's Committee of the commune's office, and announce on the commune radio station about the opening of operations, name change, or relocation of the transaction room.

Section 2
Ceasing operations and dissolving transaction rooms of people's credit cooperatives

Article 38. Ceasing operations and dissolving transaction rooms

1. A credit cooperative branch terminates operations and dissolves in the following cases:

a) Automatic termination of operations and liquidation;

b) Voluntary termination of operations and liquidation;

c) Compulsory termination of operations and liquidation.

2. The credit cooperative is responsible for:

a) Settling assets, rights, obligations, and related interests of the transaction room ceasing operations or being dissolved in accordance with the provisions of the law;

b) Storing documents, records, and files of the branch that ceases operations and dissolves and related documents concerning the termination of operations and dissolution;

c) Implementing legal procedures to terminate operations and dissolve the branch in accordance with the law.

Article 39. Naturally ceasing operations and dissolving transaction rooms

1. The transaction room of a people's credit cooperative shall naturally cease operations when the people's credit cooperative ceases operations or is dissolved.

2. Procedures for automatic termination of operations and dissolution of credit cooperative branches shall be carried out in accordance with the law.

Article 40. Voluntarily ceasing operations and dissolving transaction rooms

1. Documents for voluntary termination of operations and dissolution of branches include:

a) A document of the people's credit cooperative proposing to cease operations or dissolve the transaction room, clearly stating the reasons for ceasing operations or dissolution, the name and address of the transaction room ceasing operations or being dissolved, and committing to settle the assets, rights, obligations, and related interests of the transaction room ceasing operations or being dissolved;

b) Resolution of the Members' Congress or the Board of Directors' Resolution in accordance with the Charter of the people's credit cooperative regarding the cessation of operations or dissolution of the transaction room;

2. Procedure for voluntary termination of operations and dissolution of branches:

a) The people's credit cooperative shall prepare one set of documents as prescribed in Clause 1 of this Article and submit it to the State Bank branch;

b) For provinces or cities without a Banking Inspection and Supervision Bureau:

Within fourteen working days from the date of receipt of all documents as prescribed in Clause 1 of this Article, the State Bank branch shall issue a document approving or not approving the proposal of the people's credit cooperative; if not approved, the document must clearly state the reasons.

c) For provinces or cities with a Banking Inspection and Supervision Bureau:

(i) Within two working days from the date of receipt of all documents as prescribed in Clause 1 of this Article, the State Bank branch shall issue a document seeking the opinion of the Banking Inspection and Supervision Bureau on the cessation of operations or dissolution of the transaction room of the people's credit cooperative;

(ii) Within five working days from the date of receipt of the document from the State Bank branch, the Banking Inspection and Supervision Bureau shall provide its comments in writing on the proposed content;

(iii) Within fourteen working days from the date of receipt of all documents as prescribed in Clause 1 of this Article, the State Bank branch shall issue a document approving or not approving the proposal of the people's credit cooperative; if not approved, the document must clearly state the reasons.

3. Within forty-five days from the date of receipt of the approval document of the State Bank branch, the people's credit cooperative must complete the legal procedures as prescribed by law to cease operations or dissolve the transaction room and submit a report in writing to the State Bank branch detailing the specific date and results of ceasing operations or dissolution.

Article 41. Compulsory cessation of operations and dissolution of transaction rooms

1. The Director of the State Bank branch has the authority to compel the cessation of operations or dissolution of the transaction room of a people's credit cooperative.

2. The transaction room of a people's credit cooperative will be compelled to cease operations or be dissolved if there is evidence proving that the establishment application documents do not meet the conditions for establishment.

3. Upon discovering a case as stipulated in Clause 2 of this Article, the State Bank branch shall immediately issue a document clearly stating the reasons and request the people's credit cooperative to cease operations or dissolve the transaction room.

For provinces or cities with a Banking Inspection and Supervision Bureau, during the inspection and supervision process, if a case as stipulated in Clause 2 of this Article is discovered, the Banking Inspection and Supervision Bureau shall issue a document requesting the State Bank branch to cease operations or dissolve the transaction room of the people's credit cooperative. Within five working days from the date of receipt of the document from the Banking Inspection and Supervision Bureau, the State Bank branch shall issue a document clearly stating the reasons and request the people's credit cooperative to cease operations or dissolve the transaction room.

4. Within ninety days from the date the State Bank branch issues a document requesting the cessation of operations or dissolution of the transaction room, the people's credit cooperative must complete the cessation of operations or dissolution of the transaction room; submit a report in writing to the State Bank branch detailing the specific date and results of ceasing operations or dissolution.

5. In cases where there is a complaint against the State Bank branch's requirement to compel the cessation of operations or dissolution of the transaction room, the people's credit cooperative shall follow the current legal procedures for complaints.

Article 42. Information Disclosure

Within seven working days from the date of cessation of operations or dissolution of the transaction room (except in cases of natural cessation of operations or dissolution under Article 39 of this Circular), the people's credit cooperative must publish and publicly post at the People's Committee of the commune's office, and announce on the commune radio station about the cessation of operations or dissolution of the transaction room. The minimum content of the publication and public posting includes:

1. The name and address of the branch being terminated and dissolved.

2. Date of termination of operations and dissolution.

3. Responsibilities of the people's credit cooperative regarding the assets, rights, obligations, and related interests of the transaction room ceasing operations or being dissolved.

Chapter IV
IMPLEMENTATION

Article 43. Responsibilities of credit institutions that are cooperatives

1. To have an annual development plan for branches, transaction rooms, representative offices, domestic units, and foreign representative offices of credit institutions that are cooperatives, which must be submitted to the competent authority of the credit institution that is a cooperative.

2. Shall be responsible under the law for the completeness and accuracy of the information and documents provided in the dossier.

3. To comply with the provisions of this Circular.

Article 44. Responsibilities of the State Bank branch where the credit institution that is a cooperative has its branch, transaction room, representative office, or unit located.

1. For State Bank of Vietnam branches (where there is no Banking Inspection and Supervision Department):

a) Shall be responsible to the Governor of the State Bank of Vietnam for performing tasks within their authority as prescribed in this Circular;

b) Shall coordinate with the Banking Inspection and Supervision Authority to handle issues arising related to the organization and operation of cooperative bank branches, transaction offices, representative offices, and affiliated units on their territory;

c) Shall implement management, inspection, and supervision tasks regarding the activities of cooperative bank branches, transaction offices, affiliated units, and representative offices on their territory in accordance with this Circular and other relevant documents of the State Bank of Vietnam;

d) Shall issue a report and propose to the Governor of the State Bank of Vietnam to terminate operations and dissolve cooperative bank branches, transaction offices, representative offices, and affiliated units when one of the cases specified in Clause 1, Article 25 of this Circular occurs;

2. For State Bank of Vietnam branches (where there is a Banking Inspection and Supervision Department):

a) Shall be responsible to the Governor of the State Bank of Vietnam for performing tasks within their authority as prescribed in this Circular;

b) Shall coordinate with the Banking Inspection and Supervision Department to handle issues arising related to the establishment, termination of operations, and dissolution of people's credit fund transaction offices on their territory;

c) Shall participate in inspection teams at the request of the Banking Inspection and Supervision Department to ensure compliance with cash storage safety standards as stipulated in the case where cooperative bank branches or transaction offices have cash storage facilities;

Article 45. Responsibilities of the Banking Inspection and Supervision Authority

1. Shall be responsible to the Governor of the State Bank when performing tasks according to the authority prescribed in this Circular.

2. Shall be the focal point for implementing inspection and supervision tasks concerning the activities of cooperative bank branches, transaction offices, representative offices, and affiliated units on the territory of provinces or cities where there is a Banking Inspection and Supervision Department, as prescribed in this Circular and other relevant documents of the State Bank of Vietnam;

3. Shall provide opinions to State Bank of Vietnam branches (where there is a Banking Inspection and Supervision Department) on proposals related to the establishment, termination of operations, and dissolution of people's credit fund transaction offices on their territory as prescribed in this Circular and shall provide information about the results of supervision, inspection, and audit; post-supervision, inspection, and audit handling results related to people's credit fund transaction offices on their territory according to the cooperation work regulation between the Banking Inspection and Supervision Authority and State Bank of Vietnam branches (where there is a Banking Inspection and Supervision Department);

Chapter V
IMPLEMENTING PROVISIONS

Article 46. Investment projects related to the provisions at Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular that have been approved before this Circular takes effect shall continue to be implemented according to the regulations at the time of approval; the investment decision maker has the right to choose to apply Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular.

1. Cooperative banks are permitted to maintain the current number of branches and transaction offices without adjusting according to this Circular. Within twelve months from the date this Circular takes effect, existing branches and transaction offices of cooperative banks must complete requirements as stipulated in Clause 1 and Clause 2, Article 15 of this Circular;

2. People's Credit Funds are permitted to maintain the current number of transaction offices before this Circular takes effect without adjusting according to this Circular, except in cases contrary to current laws regarding operating areas. Within twelve months from the date this Circular takes effect, existing transaction offices of people's credit funds must complete requirements as stipulated in Clause 1, Article 34 of this Circular;

3. Transaction offices of cooperative banks and people's credit funds that have signed loan contracts before this Circular takes effect and which comply with legal provisions at the time of signing may continue to implement these contracts until their expiration. Amendments and supplements to these contracts can only be made if the amendments and supplements comply with the provisions of Clause 2 and Clause 3, Article 5 of this Circular and relevant legal provisions;

4. For savings funds and transaction points established according to the regulations of the State Bank of Vietnam prior to the effective date of this Circular, within twelve months from the date this Circular takes effect, cooperative banks and people's credit funds must complete adjustments as follows:

a) For cooperative banks:

(i) Cooperative banks shall convert savings funds and transaction points into transaction offices based on meeting the conditions, documents, procedures, and formalities for establishing and commencing operations of transaction offices as stipulated in this Circular;

(ii) In cases where cooperative banks do not convert savings funds and transaction points as stipulated herein, cooperative banks voluntarily terminate operations and dissolve savings funds and transaction points and bear responsibility as prescribed in Clause 3, Article 25 of this Circular and shall submit a report to the Banking Inspection and Supervision Department or State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Department) where the savings fund or transaction point is located;

If beyond the twelve-month period from the date this Circular takes effect, cooperative banks do not voluntarily terminate operations and dissolve savings funds and transaction points, the Governor of the State Bank of Vietnam has the authority to compulsorily terminate operations and dissolve savings funds and transaction points as follows:

- The State Bank of Vietnam branch or Banking Inspection and Supervision Department where the savings fund or transaction point is located shall report to the State Bank of Vietnam (through the Banking Inspection and Supervision Authority). Within fourteen working days from the date of receipt of the report, the Banking Inspection and Supervision Authority shall submit a compulsory order to the Governor of the State Bank of Vietnam to compel cooperative banks to terminate operations and dissolve savings funds and transaction points;

- The State Bank of Vietnam branch or Banking Inspection and Supervision Department where the savings fund or transaction point is located shall be responsible for monitoring and supervising the implementation process of the Governor's order.

- Within thirty days from the date the State Bank issues the compulsory document mentioned above, the cooperative bank must complete the termination of operations, dissolution of savings funds, and service points, and submit a report to the State Bank detailing the specific time and results of terminating operations and dissolving. The cooperative bank shall be responsible for the savings fund and service points in accordance with Clause 3, Article 25 of this Circular.

(iii) The cooperative bank must ensure that the conversion of savings funds and service points does not disrupt operations and guarantees the legitimate rights and interests of related organizations and individuals.

b) For the People's Credit Fund:

(i) Credit unions converting savings funds established before the effective date of this Circular shall become service points based on meeting the conditions, documents, procedures, and formalities for establishing and commencing operations of service points as stipulated in this Circular and in compliance with relevant laws.

(ii) In the case where credit unions convert service points established before the effective date of this Circular into service introduction points, the credit union must submit a report to the State Bank branch, the Banking Inspection and Supervision Department, and local authorities.

(iii) If the credit union does not convert the savings fund established before the effective date of this Circular into a service point and does not convert the service point into a service introduction point, the credit union voluntarily terminates operations and dissolves the savings fund and service points and shall be responsible in accordance with Clause 2, Article 38 of this Circular.

If beyond twelve months from the date this Circular becomes effective, the credit union does not voluntarily terminate operations and dissolve the savings fund and service points established before the effective date of this Circular, the Director of the State Bank branch shall have the authority to compulsorily terminate operations and dissolve the savings fund and service points according to the following contents:

- The Director of the State Bank branch shall immediately issue a compulsory document to terminate operations and dissolve the savings fund and service points and supervise the credit union's implementation of this document.

- Within thirty days from the date the Director of the State Bank branch issues the compulsory document mentioned above, the credit union must complete the termination of operations and dissolution of the savings fund and service points and submit a report to the State Bank branch detailing the specific time and results of terminating operations and dissolving. The credit union shall be responsible for the savings fund and service points as provided in Clause 2, Article 38 of this Circular.

(iv) The credit union must ensure that the conversion of savings funds and service points does not disrupt operations and guarantees the legitimate rights and interests of related organizations and individuals.

Article 47. Effective Date

1. This Circular takes effect from June 15, 2018.

2. From the date this Circular takes effect, the provisions in the following documents shall cease to be effective:

a) Clause 3, Article 1; Clause 1, Clause 2, Clause 3, Article 2; Articles 12, 13, 14, 15, 16; Clause 2, Clause 3, Article 41; Provisions on approval for opening and terminating operations of trading offices, branches, representative offices, service points, and savings funds of credit unions at Article 3, Clause 1, Article 40 of the Regulation on Issuance and Revocation of Licenses for Establishment and Operation of Credit Unions; Opening and Terminating Operations of Trading Offices, Branches, Representative Offices, and Service Points of Credit Unions; Splitting, Dividing, Merging, and Liquidation of Credit Unions under the Supervision of the State Bank issued together with Decision No. 24/2006/QĐ-NHNN dated June 6, 2006 of the Governor of the State Bank;

b) Clause 5, Clause 6, Clause 7, Clause 8, Article 1; Provisions on opening and terminating operations of trading offices, branches, representative offices, service points, and savings funds of credit unions at Clause 1, Clause 3, Article 1; Provisions on trading offices, branches, representative offices, service points, and savings funds of credit unions at Clause 2, Article 1 of Decision No. 26/2008/QĐ-NHNN dated September 9, 2008 of the Governor of the State Bank amending and supplementing certain articles of the Regulation on Issuance and Revocation of Licenses for Establishment and Operation of Credit Unions; Opening and Terminating Operations of Trading Offices, Branches, Representative Offices, and Service Points of Credit Unions; Splitting, Dividing, Merging, and Liquidation of Credit Unions under the Supervision of the State Bank issued together with Decision No. 24/2006/QĐ-NHNN dated June 6, 2006 of the Governor of the State Bank;

c) Provisions on changing the location of the headquarters of trading offices, branches, and representative offices of central credit unions at Article 11, Article 13 of the Regulations on Procedures and Formalities for Changes of Credit Unions that Must Be Approved by the State Bank issued together with Decision No. 05/2007/QĐ-NHNN dated January 30, 2007 of the Governor of the State Bank.

Article 48. Implementation organization

The Director of the Office, the Head of the Inspectorate, the Heads of units under the State Bank, the Governors of the State Bank Branches in provinces and centrally governed cities, the Chair and members of the Management Board, the Heads and members of the Supervisory Board, and the General Directors (Directors) of credit organizations that are cooperatives shall be responsible for implementing this Circular./.