Decree No. 162/2024/ND-CP on conditions for issuing licenses to people's credit funds, microfinance organizations, and conditions for owners of single-member limited liability banking organizations, founding shareholders, and founding members.

DECREE

REGULATIONS ON CONDITIONS FOR GRANTING LICENSES TO RURAL CREDIT FUNDS, MICROFINANCE ORGANIZATIONS AND CONDITIONS FOR OWNERS OF CREDIT INSTITUTIONS THAT ARE SINGLE-MEMBER LIMITED LIABILITY COMPANIES, FOUNDING SHAREHOLDERS, AND FOUNDING MEMBERS

On the basis of Law on Government Organization dated June 19, 2015; Law Amending and Supplementing Certain Provisions of the Law on Government Organization and the Law on Local Administration dated November 22, 2019;

On the basis of Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of Law on Credit Institutions dated January 18, 2024;

At the proposal of the Governor of the State Bank of Vietnam;

The Government issues this Decree to regulate conditions for owners of credit institutions that are single-member limited liability companies, founding shareholders, and founding members as stipulated in Point b Clause 1 Article 29 of the Law on Credit Institutions and conditions for granting licenses to rural credit funds and microfinance organizations.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Joint-stock commercial banks, joint venture banks, and foreign-owned banks (hereinafter referred to as commercial banks).

Article 2. Applicability

3. Non-bank credit institutions.

2. Branches of foreign banks.

6. Founding shareholders, founding members, and owners of credit institutions, parent banks of foreign bank branches.

4. People's Credit Funds.

5. Microfinance organizations.

7. Organizations and individuals related to the establishment and issuance of licenses for commercial banks, foreign bank branches, non-bank credit institutions, and rural credit funds, microfinance organizations.

1. A 100%-foreign-owned bank is a commercial bank established in Vietnam with 100% of its charter capital owned by a foreign credit institution; it is a Vietnamese legal entity with its main office in Vietnam. A 100%-foreign-owned bank is established and organized in the form of a single-member limited liability company whose owner is a foreign bank or a limited liability company with two or more members, at least one of which must be a foreign bank owning more than 50% of the charter capital.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

2. A joint venture bank is a commercial bank established in Vietnam through joint venture contracts between a Vietnamese party (consisting of at least one Vietnamese bank and at most one non-bank Vietnamese enterprise) and a foreign party (consisting of at least one foreign bank and at most one non-bank foreign enterprise); it is a Vietnamese legal entity with its main office in Vietnam. A joint venture bank is established and organized in the form of a limited liability company with two or more members but not exceeding five members, where one member and their associates may not own more than 50% of the charter capital.

3. Founding shareholders of a joint-stock commercial bank are shareholders who hold at least one ordinary share and sign the list of founding shareholders of the joint-stock commercial bank.

4. Founding shareholders of a non-bank credit institution are shareholders who hold at least one ordinary share and sign the list of founding shareholders of the non-bank credit institution.

5. Capital contributors of a commercial bank are credit institutions and non-bank legal entities contributing capital to a joint venture bank; they are foreign credit institutions contributing capital to a 100%-foreign-owned bank.

6. Capital contributors of a non-bank credit institution are Vietnamese enterprises, Vietnamese joint-stock commercial banks, and foreign credit institutions contributing capital to a non-bank credit institution that is a limited liability company with two or more members.

7. Capital contributors of a microfinance organization are domestic legal entities contributing capital to a microfinance organization that is a limited liability company with two or more members.

8. Founding members of a joint venture bank and a 100%-foreign-owned bank are capital contributors participating in drafting, approving, and signing the first Charter of the joint venture bank and the 100%-foreign-owned bank.

9. Founding members of a non-bank credit institution are capital contributors participating in drafting, approving, and signing the first Charter of a non-bank credit institution that is a limited liability company with two or more members.

10. Founding members of a microfinance organization are capital contributors participating in drafting, approving, and signing the first Charter of a microfinance organization that is a limited liability company with two or more members.

11. Founding members of a rural credit fund are participants in drafting, approving, and signing the first Charter of the rural credit fund.

12. Owners of a commercial bank are organizations holding all the capital of a commercial bank that is a single-member limited liability company.

13. Owners of a non-bank credit institution are Vietnamese joint-stock commercial banks or foreign credit institutions holding all the charter capital of a non-bank credit institution that is a single-member limited liability company.

14. Owners of a microfinance organization are political-social organizations holding all the capital of a microfinance organization that is a single-member limited liability company.

15. Parent bank is a foreign bank proposing to establish a branch or having a branch in Vietnam.

16. Members of a rural credit fund are individuals, households, and legal entities meeting the conditions stipulated in this Decree and agreeing to the Charter, voluntarily participating in contributing capital to establish a rural credit fund.

16. Members of the people's credit fund are individuals, households, and legal entities meeting the conditions stipulated in this Decree and agreeing to the Charter, voluntarily participating in contributing capital to establish a people's credit fund.

Chapter II.
PROVISIONS ON CONDITIONS FOR THE OWNERS OF COMMERCIAL BANKS AND LIMITED LIABILITY COMPANIES WITH A SOLE SHAREHOLDER, FOUNDING SHAREHOLDERS, AND FOUNDING MEMBERS

Article 4. Conditions for founding shareholders of joint-stock commercial banks

1. Not being a founding shareholder, owner, founding member, or strategic shareholder of another credit organization.

2. The founding shareholders must collectively own at least 50% of the charter capital when establishing a joint-stock commercial bank, among which the founding shareholders who are legal entities must collectively own at least 50% of the total shares of the founding shareholders but not exceeding the shareholding ratio prescribed in Article 63 of the Law on Credit Organizations.

3. In addition to the conditions stipulated in Clause 1 and 2 of this Article, individual founding shareholders must meet the following conditions:

a) Hold Vietnamese nationality, have full capacity for civil acts;

b) Not belong to the prohibited categories as prescribed by the Enterprise Law, the Civil Servants and Public Officials Law, and other relevant laws;

c) Not use raised funds, borrowed funds from organizations or individuals to contribute capital, not use funds from issuing corporate bonds to contribute capital; not contribute capital under the name of another individual or legal entity in any form, except in cases of entrusted contribution of capital or purchase of shares;

d) Be a manager of a profit-making business for at least three consecutive years prior to the year of submitting the application for the License, or hold a bachelor's degree or higher in finance, banking, economics, business administration, law, accounting, or auditing;

đ) Not be convicted of offenses related to banking activities or other activities related to banking operations without having had the criminal record expunged; not be administratively sanctioned in the field of currency and banking for violations concerning licenses, governance, management, shares, stock contributions, purchasing shares, or purchasing corporate bonds within five consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License.

4. In addition to the conditions stipulated in Clause 1 and 2 of this Article, organizational founding shareholders must meet the following conditions:

a) Established in accordance with Vietnamese law;

b) Not use raised funds, borrowed funds from organizations or individuals to contribute capital, not use funds from issuing corporate bonds to contribute capital; not contribute capital under the name of another individual or legal entity in any form, except in cases of entrusted contribution of capital or purchase of shares;

c) Fully fulfill tax and social insurance obligations up to the time of submitting the application for the License;

d) Have a minimum net worth of 500 billion VND in five consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License;

đ) Generate profits in five consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License;

e) In case of being a business operating in industries requiring statutory capital, ensure that the net worth minus statutory capital is at least equal to the committed capital contribution amount based on audited financial statements of the year immediately preceding the submission of the application for the License;

g) In case of being a state-owned enterprise, must be permitted to participate in capital contributions in accordance with the law;

h) In case of being an organization granted a license to operate in the banking, securities, or insurance sectors, must comply with capital contribution regulations under the laws on banking, securities, and insurance;

i) Not be convicted of crimes prescribed in the Penal Code in two consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License;

k) In case of being a commercial bank:

Have a minimum total asset of 100 trillion VND, fully comply with all risk management regulations and adequately establish provisions as prescribed at the time of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License;

Not violate the ratios for ensuring safety in banking operations as prescribed by the State Bank of Vietnam in the year immediately preceding the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License;

Comply with the conditions and limits on purchasing and holding shares of credit organizations as prescribed in Clause 8, Article 111 of the Law on Credit Organizations;

Ensure a minimum capital adequacy ratio after contributing capital to establish a joint-stock commercial bank;

Not be administratively sanctioned in the field of currency and banking operations and not be convicted of crimes prescribed in the Penal Code in two consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License.

Article 5. Conditions for foreign bank owners who are foreign credit organizations of a wholly foreign-owned bank

1. Not seriously violating regulations on banking operations and other laws of the country where the credit organization has its headquarters for five consecutive years immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of issuance of the License.

2. Having international operating experience, rated by international credit rating organizations as follows:

a) Credit rating from AA- level upwards (according to Standard & Poor’s or Fitch Ratings) or from Aa3 level upwards (according to Moody’s) at the nearest point in time from the date of submitting the application for a License. In cases where the international credit rating organization uses a different rating scale than that of Standard & Poor’s, Moody’s, or Fitch Ratings, the credit rating shall not be lower than the corresponding level of Standard & Poor’s, Moody’s, or Fitch Ratings;

b) The outlook for the credit rating specified in point a of this Clause from stable level upwards.

3. Operating profitably for five consecutive years immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of issuance of the License.

4. Having total assets of at least equivalent to 10 billion US dollars at the end of the year immediately preceding the year of submitting the application for a License.

5. Being evaluated by the competent authority of the country where the credit organization has its headquarters as ensuring capital adequacy ratios, other safety ratios, fully complying with risk management regulations, and adequately provisioning according to the regulations of the country where the credit organization has its headquarters in the year immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of issuance of the License.

6. Not being the owner, founding member, or strategic shareholder of another Vietnamese credit organization.

7. Within five years from the date of issuance of the License, the founding members must collectively own 100% of the charter capital of the wholly foreign-owned bank.

Article 6. Conditions for founding members of a joint venture bank

1. Founding members of a joint venture bank who are foreign credit organizations must meet the conditions stipulated in Clauses 1, 2, 3, 4, 5, and 6 of Article 5 of this Decree.

2. Founding members of a joint venture bank who are Vietnamese commercial banks must meet the conditions for Vietnamese commercial banks stipulated in Clauses 1 and 4 of Article 4 of this Decree.

3. Founding members of a joint venture bank who are non-bank enterprises must meet the following conditions:

a) Established under Vietnamese law or foreign law;

b) Must be approved in writing by the competent authority to participate in contributing capital to a joint venture bank in the case of state-owned enterprises;

c) In the case of enterprises licensed to operate in the banking, securities, and insurance sectors, they must comply with capital contribution regulations under banking, securities, and insurance laws;

d) Having minimum net worth of 10 trillion VND and total assets of at least 20 trillion VND in three consecutive years immediately preceding the year of submitting the application for a License for a contribution ratio of more than 1% but less than 5% of the joint venture bank's charter capital, or having minimum net worth of 2 trillion VND and total assets of at least 4 trillion VND in three consecutive years immediately preceding the year of submitting the application for a License for a contribution ratio of 1% or less of the joint venture bank's charter capital;

đ) For enterprises operating in industries requiring statutory capital, they must ensure that their net worth minus statutory capital is at least equal to the committed capital contribution based on audited financial statements without any disclaimer from the auditing firm of the year immediately preceding the year of submitting the application for a License;

e) Operating profitably for three consecutive years immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of issuance of the License;

g) Not using raised funds or loans from other organizations or individuals to contribute capital;

h) Fully fulfilling tax and social insurance obligations up to the time of submitting the application for a License;

i) Not being a founding shareholder, owner, founding member, or strategic shareholder of another credit organization established and operating in Vietnam;

k) Not being administratively penalized in the field of currency and banking activities and not being convicted of offenses stipulated in the Penal Code in two consecutive years immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of issuance of the License.

4. Within five years from the date of issuance of the License, the founding members must collectively own 100% of the charter capital of the joint venture bank.

Article 7. Conditions for the parent bank of a foreign bank branch

1. Comply with the conditions stipulated in Clause 1, 2, and 5 of Article 5 of this Decree.

2. In addition to the conditions stipulated in Clause 1 of this Article, the parent bank of a foreign bank branch must also meet the conditions regarding total assets and financial situation as prescribed by the State Bank.

Article 8. Conditions for founding shareholders of non-bank credit institutions

1. Not be a strategic shareholder, founding shareholder, owner, or founding member of another credit institution established and operating in Vietnam.

2. Not use raised capital or borrowed funds from other organizations or individuals to contribute capital, nor use funds from corporate bond issuance to contribute capital.

3. In addition to the provisions stipulated in Clauses 1 and 2 of this Article, individual founding shareholders must comply with the following regulations:

a) Hold Vietnamese nationality, have full capacity for civil acts;

b) Not belong to the categories prohibited from establishing enterprises under the Enterprise Law, the Civil Servants and Public Officials Law, and other relevant laws.

c) Not use raised funds, borrowed funds from organizations or individuals to contribute capital, not use funds from issuing corporate bonds to contribute capital; not contribute capital under the name of another individual or legal entity in any form, except in cases of entrusted contribution of capital or purchase of shares;

d) Be a manager of a profit-making business for at least three consecutive years prior to the year of submitting the application for the License, or hold a bachelor's degree or higher in finance, banking, economics, business administration, law, accounting, or auditing;

đ) Not be convicted of offenses related to banking activities or other activities related to banking operations without having had the criminal record expunged; not be administratively sanctioned in the field of currency and banking for violations concerning licenses, governance, management, shares, stock contributions, purchasing shares, or purchasing corporate bonds within five consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of issuance of the License.

4. In addition to the provisions stipulated in Clauses 1 and 2 of this Article, organizational founding shareholders must comply with the following regulations:

a) Established in accordance with Vietnamese law;

b) Not use raised funds, borrowed funds from organizations or individuals to contribute capital, not use funds from issuing corporate bonds to contribute capital; not contribute capital under the name of another individual or legal entity in any form, except in cases of entrusted contribution of capital or purchase of shares;

c) Have been profitable for three consecutive years prior to the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of the License issuance;

d) Fully fulfill tax and social insurance obligations up to the time of submitting the application for a License;

đ) Not have been convicted of criminal offenses as specified in the Penal Code in two consecutive years prior to the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of the License issuance;

e) For Vietnamese enterprises (excluding Vietnamese commercial banks):

Have a minimum charter value of VND 500 billion and total assets of at least VND 1,000 billion for three consecutive years prior to the year of submitting the application for a License. In cases where the enterprise operates in industries requiring statutory capital, it must ensure the charter value according to the audited financial report of the year immediately preceding the submission of the License application, minus the statutory minimum capital commitment contribution.

In cases where the enterprise has been granted a License to operate in the securities and insurance sectors, it must comply with the capital contribution regulations as prescribed by the Securities Law and Insurance Law.

g) For Vietnamese commercial banks:

Have a minimum total asset of VND 100,000 billion, fully comply with all risk management regulations and adequate provisioning requirements as stipulated at the time of submitting the application for a License and up to the time of submitting supplementary documents for consideration of the License issuance;

Not violate any limits or safety ratios in operations as prescribed by the State Bank in the year immediately preceding the year of submitting the application for a License and up to the time of submitting supplementary documents for consideration of the License issuance;

Ensure a minimum capital adequacy ratio after contributing capital to establish a non-bank credit institution;

Not have been administratively penalized in the monetary sector and banking activities in two consecutive years prior to the year of submitting the application for a License and up to the time of submitting the application for a License and up to the time of submitting supplementary documents for consideration of the License issuance.

Article 9. Conditions for owners and founding members of non-bank financial institutions

1. Founding members that are Vietnamese enterprises (excluding Vietnamese commercial banks) must comply with the following provisions:

a) The provisions set forth in Clause 1, 2 of Article 8 and points a, b, c, d of Clause 4 of Article 8 of this Decree;

b) Have a minimum charter capital of 1,000 billion VND and total assets of at least 2,000 billion VND for three consecutive years prior to the year of submitting the application for the License. In cases where the enterprise operates in industries requiring statutory capital, it must ensure the reported charter capital in the audited financial statements of the year immediately preceding the submission of the application for the License, minus the statutory capital equivalent to the committed contribution capital;

c) In cases where the enterprise is granted a License to operate in the securities and insurance sectors, they must comply with the capital contribution regulations stipulated by the laws on securities and insurance;

d) Not be convicted of crimes specified in the Penal Code in the two consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of granting the License.

2. Owners and founding members that are Vietnamese commercial banks (except for the owner specified in Clause 5 of this Article) must comply with the provisions set forth in Clause 1, 2 of Article 8 and points c, d, đ, g of Clause 4 of Article 8 of this Decree.

3. Owners and founding members that are foreign credit organizations must comply with the following provisions:

a) Meet the conditions regarding total assets and financial status as prescribed by the State Bank;

b) Not seriously violate banking operation regulations and other relevant laws of the country where the credit organization has its headquarters in the five consecutive years prior to the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of granting the License;

c) Have international operational experience and be rated by international credit rating organizations as follows:

Credit rating from level A- or higher (according to Standard & Poor’s or Fitch Ratings) or from level A3 or higher (according to Moody’s) as of the nearest date calculated from the date of submitting the application for the License. In cases where ratings from other international credit rating organizations are used, such organizations must be registered or confirmed by the European Securities and Markets Authority (ESMA), or they must be permitted by a G7 member country to rate foreign credit organizations establishing non-bank financial institutions in Vietnam, with a credit rating of level A or higher;

The outlook for the credit rating specified herein must be stable or better.

d) Be evaluated by the competent authority of the country where the credit organization has its headquarters to ensure adequate capital ratios, other safety ratios, full compliance with risk management regulations, and adequate provisioning according to the regulations of the country where the credit organization has its headquarters in the year immediately preceding the year of submitting the application for the License and up to the time of submitting supplementary documents for consideration of granting the License;

đ) Not be a strategic shareholder, owner, or founding member of another credit organization established and operating in Vietnam.

Within five years from the date of issuance of the License, owners and founding members must collectively own 100% of the charter capital of limited liability non-bank financial institutions, except for the case specified in point c of Clause 5 of this Article.

5. Owners that are Vietnamese commercial banks which are compulsorily transferred to establish non-bank financial institutions to implement approved compulsory transfer plans must comply with the following provisions:

a) The provisions set forth in Clause 1, 2 of Article 8 and point d of Clause 4 of Article 8 of this Decree;

b) Have a minimum charter capital equal to the total statutory capital required for commercial banks and the statutory capital required for non-bank financial institutions as stipulated by law at the time of submitting the application for the License;

c) The ownership period specified in Clause 4 of this Article shall be implemented according to the approved compulsory transfer plan.

Chapter III
PROVISIONS ON CONDITIONS FOR GRANTING LICENSE TO RURAL CREDIT COOPERATIVES AND MICROFINANCE ORGANIZATIONS

Article 10. Conditions for Issuing a License to People's Credit Funds

1. Having a minimum charter capital equal to the statutory capital level prescribed by the Government at the time of requesting the license issuance.

2. Having a minimum of 30 members meeting the conditions stipulated in Article 1 of this Decree, with sufficient financial capacity to participate in establishing the people's credit fund.

3. Managers, operators, and members of the Supervisory Board must meet all standards and conditions as prescribed in Clause 6, Article 41 of the Law on Credit Organizations.

4. The organizational structure of the Board of Directors and the Supervisory Board must comply with the provisions of the Law on Credit Organizations.

5. Having Bylaws consistent with the provisions of the Law on Credit Organizations and other relevant laws.

6. Having a feasible establishment project and business plan for the first three years of operation.

Article 11. Conditions for Founding Members of People's Credit Funds

1. For individuals:

a) Vietnamese citizens aged 18 or older, fully capable of civil acts, registered as permanent residents or temporary residents within the operational area of the people's credit fund. In cases of temporary registration, the individual must be engaged in production, business activities, or be a worker employed within the operational area of the people's credit fund and must provide proof of such activities;

b) Not currently being pursued for criminal responsibility, serving a prison sentence; undergoing administrative measures at compulsory drug rehabilitation centers or compulsory educational facilities; prohibited from holding certain positions, practicing certain professions, or performing certain tasks by a court; or individuals who have been convicted of serious crimes or worse and have not yet had their criminal records expunged;

c) Not among those prohibited under the Civil Servants Law and other relevant laws.

2. For households:

a) Households with members permanently residing within the operational area of the people's credit fund; household members share assets for household production and service business operations;

b) Household members must appoint one member to represent the household in exercising rights and fulfilling obligations as a member of the people's credit fund. The representative must be authorized in writing by all household members according to the law and must satisfy the conditions stipulated in Clause 1 of this Article.

3. For legal entities:

a) Legal entities (excluding Social Funds and Charity Funds) operating normally and having their main office located within the operational area of the people's credit fund;

b) The representative of the legal entity participating as a member of the people's credit fund must be the legal representative of the legal entity or an individual authorized by the legal representative to participate.

Article 12. Conditions for Issuing a License to Microfinance Organizations

1. Having a minimum charter capital equal to the statutory capital level prescribed by the Government at the time of requesting the license issuance.

2. Having owners and founding members as prescribed in Article 13 of this Decree.

3. Having managers, operators, and members of the Supervisory Board meeting the criteria and conditions as prescribed by the State Bank.

4. Having Bylaws consistent with the provisions of the Law on Credit Organizations and relevant laws.

5. Having a feasible establishment project and business plan for the first three years of operation.

Article 13. Conditions for owners and founding members of microfinance organizations

1. The owner of a microfinance organization established in the form of a limited liability company with one member must ensure the following conditions:

a) It is a central-level political-social organization;

b) It has financial capacity to contribute capital to establish a microfinance organization and commits not to use entrusted funds, raised funds, or loans from other organizations or individuals to contribute capital; it commits to financially support the microfinance organization to address difficulties when encountering capital shortages or liquidity issues;

c) It is not a founding shareholder, owner, founding member, or strategic shareholder of another credit organization in Vietnam.

2. Founding members of a microfinance organization that is a limited liability company with two or more members must ensure the following conditions:

a) At least one capital-contributing member is a central-level political-social organization meeting the conditions stipulated in points b and c of Clause 1 of this Article;

b) At least one capital-contributing member is a legal entity that has directly participated in managing or operating a safe and sustainable microfinance program/project for at least three consecutive years prior to the date of submitting the application for a License; it has not been convicted of crimes specified in the Penal Code in the two years immediately preceding the year of submitting the application for a License and up to the date of submitting supplementary documents for consideration of issuance of the License;

c) Other capital-contributing members are legal entities:

Established under Vietnamese law;

Not a founding shareholder, owner, founding member, or strategic shareholder of another credit organization in Vietnam; not convicted of crimes specified in the Penal Code in the two years immediately preceding the year of submitting the application for a License and up to the date of submitting supplementary documents for consideration of issuance of the License;

Have financial capacity to contribute capital to establish a microfinance organization and commit not to use entrusted funds, raised funds, or loans from other organizations or individuals to contribute capital; commit to financially support the microfinance organization to address difficulties when encountering capital shortages or liquidity issues;

Fulfill all tax and social insurance obligations up to the date of submitting the application for a License;

Not subject to administrative penalties in the highest fine range for violations related to licenses, governance, management, shares, stocks, capital contributions, purchasing shares, granting credit, purchasing corporate bonds, and safety ratios as prescribed by laws on administrative penalties in the field of money and banking within the two years immediately preceding the date of submitting the application for a License;

In cases where the founding member is a business enterprise, it must have been profitable in the three consecutive years immediately preceding the year of submitting the application for a License;

In cases where the founding member is a business enterprise operating in industries requiring statutory capital, it must ensure that the net worth minus the minimum statutory capital equals the committed capital contribution based on audited financial statements of the year immediately preceding the submission of the application for a License;

In cases where the founding member is a business enterprise licensed to operate in the banking, securities, or insurance sectors, it must comply with capital contribution regulations as prescribed by laws on banking, securities, and insurance.

Chapter IV
IMPLEMENTING PROVISIONS

Article 14. Effective Date

1. This Decree takes effect from December 20, 2024.

2. Decree No. 39/2014/NĐ-CP dated May 7, 2014 of the Government on the activities of finance companies and leasing companies ceases to be effective from the date this Decree takes effect.

Article 15. Responsibility for Implementation

The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, Chairpersons of Board of Members, Chairpersons of Board of Directors, and General Directors of credit institutions, foreign bank branches, and relevant organizations and individuals are responsible for implementing this Decree.