Circular No. 17/2018/TT-NHNN Amending and Supplementing Certain Articles of Circulars on Issuing Licenses, Network Operations, and Foreign Exchange Activities of Credit Institutions and Branches of Foreign Banks

CIRCULAR

||| Amending and supplementing certain provisions of Circulars on the issuance of Licenses, network operations, and foreign exchange activities of credit institutions and foreign bank branchesThe Governor of the State Bank of Vietnam issues this Circular to amend and supplement certain provisions of Circulars on the issuance of Licenses, network operations, and foreign exchange activities of credit institutions and foreign bank branches

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

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

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 the Legal Department;

Article 1. Amending and supplementing certain provisions of Circular No. 40/2011/TT-NHNN dated December 15, 2011 of the Governor of the State Bank of Vietnam on the issuance of Licenses and organization and operation of commercial banks, foreign bank branches, and representative offices of foreign credit institutions and other foreign organizations engaged in banking activities in Vietnam.

1. Point đ Clause 2 Article 9 shall be amended and supplemented as follows:

"đ) Founding shareholders must collectively own at least 50% of the charter capital when establishing a joint-stock commercial bank, among which founding shareholders who are legal entities must collectively own at least 50% of the total shares of founding shareholders;"

2. Point e Clause 2 Article 9 shall be amended and supplemented as follows:

"e) In addition to the conditions stipulated in points c and đ of this clause, founding shareholders who are individuals must meet the following conditions:

(i) Hold Vietnamese nationality;

(ii) Not belong to those prohibited under the Law on Enterprises;

(iii) Not use raised funds or borrowed funds from organizations or individuals to contribute capital;

(iv) Be a business manager with profit-making operations for at least three consecutive years prior to submitting the application for License issuance or hold a bachelor's degree or higher in economics or law;"

3. Point g (ii) Clause 2 Article 9 shall be amended and supplemented as follows:

"(ii) Not use raised funds or borrowed funds from other organizations or individuals to contribute capital;"

4. Abolish points a, b, d Clause 2 Article 9; abolish the phrase "a, b," in point g Clause 2 Article 9, Clause 3 Article 10.

Article 2. Abolishing certain provisions of Circular No. 21/2013/TT-NHNN dated September 9, 2013 of the Governor of the State Bank of Vietnam on the network operations of commercial banks

Abolish point i Clause 1 Article 6.

Article 3. Abolishing certain provisions of Circular No. 21/2014/TT-NHNN dated August 14, 2014 of the Governor of the State Bank of Vietnam guiding the scope of foreign exchange activities, conditions, procedures, and formalities for approving foreign exchange activities of credit institutions and foreign bank branches

Abolish point a Clause 2 Article 10 (amended and supplemented by Clause 10 Article 1 of Circular No. 28/2016/TT-NHNN dated October 5, 2016 amending and supplementing certain provisions of Circular No. 21/2014/TT-NHNN dated August 14, 2014 of the Governor of the State Bank of Vietnam guiding the scope of foreign exchange activities, conditions, procedures, and formalities for approving foreign exchange activities of credit institutions and foreign bank branches).

Article 4. Amending and supplementing certain provisions of Circular No. 30/2015/TT-NHNN dated December 25, 2015 of the Governor of the State Bank of Vietnam on the issuance of Licenses, organization, and operation of non-bank credit institutions

1. Clause 5 Article 11 (amended and supplemented by Clause 2 Article 1 of Circular No. 15/2016/TT-NHNN dated June 30, 2016 amending and supplementing certain provisions of Circular No. 30/2015/TT-NHNN dated December 25, 2015 of the Governor of the State Bank of Vietnam on the issuance of Licenses, organization, and operation of non-bank credit institutions) shall be amended and supplemented as follows:

"5. Not use raised funds or borrowed funds from other organizations or individuals to contribute capital."

2. Point a Clause 6 Article 11 (amended and supplemented by Clause 2 Article 1 of Circular No. 15/2016/TT-NHNN dated June 30, 2016 amending and supplementing certain provisions of Circular No. 30/2015/TT-NHNN dated December 25, 2015 of the Governor of the State Bank of Vietnam on the issuance of Licenses, organization, and operation of non-bank credit institutions) shall be amended and supplemented as follows:

"a) Hold Vietnamese nationality;"

3. Abolish Clauses 1, 2, 3 Article 11.

Article 5. Repeal certain provisions of Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam on cooperative banks

Repeal Clause 6, Article 8, and Clause 1, Article 25.

Article 6. Repeal certain provisions of Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank of Vietnam on people's credit funds

Repeal point d, Clause 1, Article 31 (amended and supplemented by Clause 3, Article 2 of Circular No. 06/2017/TT-NHNN dated July 5, 2017 amending and supplementing certain provisions of Circular No. 03/2014/TT-NHNN dated January 23, 2014 of the Governor of the State Bank of Vietnam on the Guarantee Fund for the Safety of the People's Credit Fund System and Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank of Vietnam on people's credit funds).

Article 7. Responsibilities for Organizing Implementation

The Head of the Office, Heads of Departments under the Legal Department and Heads of units under the State Bank of Vietnam, Governors of the State Bank branches in provinces and centrally-administered cities, Chairmen of the Management Councils, Chairmen of the Board of Members, General Directors (Directors) of credit organizations, and foreign bank branches are responsible for organizing the implementation of this Circular.

Article 8. Implementation clause

This Circular takes effect from October 1, 2018./.