Circular No. 27/2022/TT-NHNN Amends and Supplements Certain Provisions of Circulars Governing the Delegation of Administrative Procedures in the Field of Establishment and Operation of Banks

CIRCULAR

Amending and supplementing certain articles of Circulars stipulating the delegation of authority to handle administrative procedures in the field of establishment and operation of banks

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

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating 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 issues this Circular amending and supplementing certain articles of Circulars stipulating the delegation of authority to handle administrative procedures in the field of establishment and operation of banks.

Article 1. Amending and supplementing certain articles of Circular No. 43/2015/TT-NHNN dated December 31, 2015 of the Governor of the State Bank of Vietnam on the organization and operation of postal banking transaction offices under Viettel Commercial Joint Stock Bank

1. Amending and supplementing Clause 7 of Article 3 as follows:

"7. The State Bank branch is the State Bank branch of the province or centrally governed city."

"2. In accordance with the provisions of this Circular and in line with the monetary policy objectives for each period, the Governor of the State Bank authorizes the Director of the State Bank branch to:

a) Approve or disapprove the cessation of operations of postal banking transaction offices within their jurisdiction (in cases where such cessation is voluntary);

b) Confirm that Viettel Commercial Joint Stock Bank meets the conditions to commence operations of postal banking transaction offices within their jurisdiction;

c) Confirm that postal banking transaction offices meet the conditions to operate at new locations when changing location within their jurisdiction;

d) Compel the cessation of operations of postal banking transaction offices within their jurisdiction."

3. Amending and supplementing Clause 2, Clause 3 of Article 14 as follows:

"2. Voluntary cessation procedure for postal banking transaction offices:

a) Viettel Commercial Joint Stock Bank shall prepare one set of documents in accordance with Clause 1 of this Article and submit it to the State Bank branch where the postal banking transaction office is located;

b) Within seven working days from the date of receipt of complete documents in accordance with this Circular, the State Bank branch where the postal banking transaction office is located shall issue a document approving the cessation of operations of the postal banking transaction office; if not approved, it must provide a document stating the reasons.

3. Within forty-five days from the date of issuance of the approval document by the State Bank branch where the postal banking transaction office is located as stipulated in Point b Clause 2 of this Article, Viettel Commercial Joint Stock Bank must proceed with the legal procedures prescribed by law to cease operations of the postal banking transaction office and report in writing to the State Bank branch where the postal banking transaction office is located about the cessation date."

4. Amending and supplementing Point 4 of Appendix 01 as follows:

"4. Reporting unit:

* The State Bank branch in the locality receives reports on the capital mobilization figures of each postal banking transaction office and the consolidated capital mobilization figures of all postal banking transaction offices in each provincial or centrally governed city.

* The banking inspection and supervision agency receives reports on the consolidated capital mobilization figures of postal banking transaction offices managed by the postal savings branch."

5. Replacing and abolishing certain phrases and clauses as follows:

a) Replacing the phrase "State Bank (through the Banking Inspection and Supervision Department, State Bank branch where the postal banking transaction office is located)" at Point b Clause 5 Article 8 and Clause 2, Clause 4 Article 17 with the phrase "State Bank branch where the postal banking transaction office is located";

b) Replacing the phrase "State Bank (through the State Bank branch or Banking Inspection and Supervision Department where Viettel Commercial Joint Stock Bank plans to locate the postal banking transaction office)" at Point a Clause 2 Article 9 and Point a Clause 3 Article 10 with the phrase "State Bank branch where Viettel Commercial Joint Stock Bank plans to locate the postal banking transaction office";

d) Abolishing Clause 4 Article 18.

Article 2. Amend and supplement some articles of Circular No. 53/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam on the network of non-bank credit institutions.

3. Amending and supplementing Clause 5 of Article 4 as follows:

"2. The Director of the State Bank of Vietnam branch at provincial and centrally governed city level shall consider and approve or not approve:

a) Change of location for the head office of a non-bank credit institution's branch within the jurisdiction (including cases of changing location before commencing operations).

b) The voluntary cessation of operations and dissolution of branches of non-bank credit institutions within their jurisdiction."

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

"3. Procedure:

a) The non-bank credit institution shall prepare one set of documents in accordance with Clause 2 of this Article and submit it to the State Bank of Vietnam branch where the branch headquarters is located. In case the documents are incomplete or invalid, the State Bank of Vietnam branch shall issue a document requesting the non-bank credit institution to supplement and complete the documents within five working days from the date of receipt of the documents.

b) Within ten working days from the date of receiving all documents in accordance with Clause 2 of this Article, the State Bank of Vietnam branch where the branch headquarters is located shall issue a document to the non-bank credit institution approving or not approving the change of location for the branch headquarters; in case of disapproval, the document must clearly state the reasons."

"6. In case the address of the branch headquarters changes due to administrative boundary changes (without changing the location of the branch headquarters), the non-bank credit institution shall submit a request to the State Bank of Vietnam branch to confirm the change of address. The request of the non-bank credit institution must be accompanied by documents proving the aforementioned address change.

3. Amend and supplement Clause 2, Clause 3 of Article 18 as follows:

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

b) Within forty-five days from the date of receiving all documents in accordance with Clause 1 of this Article, the State Bank of Vietnam branch shall issue a document approving or not approving the request of the non-bank credit institution; in case of disapproval, the document must clearly state the reasons.

b) Within 45 days from the date of receiving complete documents as stipulated in Clause 1 of this Article, the State Bank of Vietnam branch shall issue a document approving or not approving the proposal of the non-bank financial institution; if not approved, the document must clearly state the reasons.

3. Within forty-five days from the date of receiving the approval document from the State Bank of Vietnam branch regarding the cessation of operations and dissolution of the branch, the non-bank credit institution must carry out the legal procedures as prescribed by law to cease operations and dissolve the branch and submit a report to the State Bank of Vietnam branch where the branch headquarters is located regarding the specific time and results of ceasing operations and dissolving the branch."

Article 22. Responsibilities of the State Bank of Vietnam branch where the non-bank credit institution places its branch, representative office, transaction office, and affiliated unit.

4. Amend and supplement Article 22 as follows:

"1. Accepting documents and approving or not approving matters within the authority stipulated in Clause 2 of Article 4 of this Circular.

2. Cooperating with the Banking Inspection and Supervision Authority to handle issues arising related to the organization and activities of branches, transaction offices, representative offices, and affiliated units of non-bank credit institutions within their jurisdiction.

3. Participating in opinions with the Banking Inspection and Supervision Authority as prescribed in Point c Clause 1 of Article 10 of this Circular.

4. Issuing documents to the State Bank (through the Banking Inspection and Supervision Authority) as prescribed in Clause 2 of Article 19.

5. Receiving reports and notifications from non-bank credit institutions as prescribed in this Circular."

a) Replace the phrases "State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Bureau)" in Point b Clause 2, Point c Clause 3 of Article 10, Clause 2 of Article 19; "Banking Inspection and Supervision Bureau, State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Bureau)" in Clause 4 of Article 13; "State Bank of Vietnam branch or Banking Inspection and Supervision Bureau" in Clause 5 of Article 13, Article 15; "State Bank of Vietnam branch or of the Banking Inspection and Supervision Bureau" in Clause 5 of Article 13 with the phrase "State Bank of Vietnam branch";

5. Replacing and abolishing certain phrases and clauses as follows:

b) Abolish the phrase "(where there is no Banking Inspection and Supervision Bureau)" in Point c (i) Clause 1 of Article 10;

c) Abolish Clause 6 of Article 3.

Clause 6 of Article 3 is repealed.

Article 3. Amend and supplement some articles of Circular No. 25/2017/TT-NHNN dated December 29, 2017 of the Governor of the State Bank of Vietnam on the dossier, procedures, and formalities for approving changes of non-bank credit institutions.

1. Supplement Clause 3 of Article 5 as follows:

"3. The Governor of the State Bank of Vietnam authorizes the Director of Banking Inspection and Supervision to examine and decide on amending and supplementing the License regarding the change of name of non-bank credit institutions."

2. Amend Clause 6 and supplement Clause 7 of Article 6 as follows:

"6. In cases where there is a change in the address of the main office (without generating a change in the location of the main office), the non-bank credit institution shall send by post or submit directly to the State Bank of Vietnam a notification of the change in the address of the main office and request to amend and supplement the License regarding the change in the address of the main office.

Within twenty days from the date of receipt of the request from the non-bank credit institution, the State Bank of Vietnam shall issue a decision to amend and supplement the License regarding the change in the address of the main office of the non-bank credit institution as stipulated herein.

7. The Governor of the State Bank of Vietnam authorizes the Director of Banking Inspection and Supervision to examine and decide on amending and supplementing the License regarding the change in the location of the main office within the same province or centrally governed city where the non-bank credit institution's main office is located and the change in the address of the main office (without generating a change in the location of the main office) of the non-bank credit institution."

3. Replace and abolish some phrases and points as follows:

a) Replace the phrase "Bank Inspection and Supervision Department or Branch of the State Bank of Vietnam at the new location of the non-bank credit institution for provinces or centrally governed cities without a Bank Inspection and Supervision Department" in Clause 4 of Article 6 with the phrase "Branch of the State Bank of Vietnam at the new location of the non-bank credit institution";

b) Replace the phrase "Branch of the State Bank of Vietnam at the main office location of the non-bank credit institution for provinces or centrally governed cities without a Bank Inspection and Supervision Department" in Point b of Clause 2 of Article 7 and the phrase "Bank Inspection and Supervision Department or Branch of the State Bank of Vietnam at the main office location of the non-bank credit institution for provinces or centrally governed cities without a Bank Inspection and Supervision Department" in Point a of Clause 3 of Article 11, Point a of Clause 2 of Article 12 with the phrase "Branch of the State Bank of Vietnam at the main office location of the non-bank credit institution";

c) Replace the phrases "Bank Inspection and Supervision Department or Branch of the State Bank of Vietnam" in Clause 3, Clause 4 of Article 11, Clause 2, Clause 3 of Article 12; "Branch of the State Bank of Vietnam or Bank Inspection and Supervision Department" in Point b of Clause 3 of Article 11; "Branch of the State Bank of Vietnam, Bank Inspection and Supervision Department" in Clause 2 of Article 14 with the phrase "Branch of the State Bank of Vietnam";

d) Abolish Point b of Clause 2 of Article 5, Point b of Clause 2 of Article 6.

a) Amending and supplementing Point c Clause 2 as follows:

"Article 4. The Governor's Authority of the State Bank of Vietnam

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

1. Considers and approves or disapproves proposals to establish branches, transaction offices, representative offices, domestic public service units, and foreign representative offices; terminates operations and dissolves branches; forcibly terminates operations and dissolves transaction offices, representative offices, and domestic public service units of cooperative banks according to the provisions of this Circular.

2. Delegates authority to the Governor of the State Bank of Vietnam branch in provinces and centrally-administered cities (hereinafter referred to as the Governor of the State Bank of Vietnam branch):

a) Approves or disapproves changes in the location of the headquarters of branches and transaction offices of cooperative banks within their jurisdiction (including cases where the location is changed before opening operations);

b) Approves or disapproves termination of operations and dissolution of transaction offices of cooperative banks within their jurisdiction (in cases of voluntary termination of operations);

c) Approves or disapproves proposals to establish, change the location of the headquarters, terminate operations, and dissolve transaction offices of people's credit funds within their jurisdiction;

d) Suspends the opening of operations of branches and transaction offices of cooperative banks, and transaction offices of people's credit funds within their jurisdiction if they have not met the requirements for opening operations."

2. Amends and supplements Clause 2, Clause 4 of Article 18 as follows:

"2. Procedure:

a) A cooperative bank prepares one set of documents as prescribed at Point b Clause 1 of this Article and sends it to the State Bank of Vietnam branch where the branch headquarters is located;

b) Within ten working days from the date of receiving complete documents as prescribed at Point b Clause 1 of this Article, the State Bank of Vietnam branch where the branch headquarters is located checks the proposed location for the branch headquarters and issues a document to the cooperative bank approving or disapproving the change in the location of the branch headquarters; in case of non-approval, the document must clearly state the reasons."

"4. In case of changing the address of the branch headquarters due to administrative boundary changes (without changing the location of the branch headquarters), the cooperative bank submits a document requesting the State Bank of Vietnam branch to confirm the change in address. The request document of the cooperative bank must be accompanied by relevant documents proving or confirmed by the competent administrative management agency regarding the aforementioned change in address.

Within five working days from the date of receipt of the request document as prescribed above, the State Bank of Vietnam branch where the branch headquarters is located issues a document to the cooperative bank confirming the change in the address of the branch headquarters."

3. Amends and supplements Clause 2 of Article 40 as follows:

"2. Procedure for voluntary termination of operations and dissolution of transaction offices:

a) A people's credit fund prepares one set of documents as prescribed at Clause 1 of this Article and sends it to the State Bank of Vietnam branch;

b) Within fourteen working days from the date of receiving complete documents as prescribed at Clause 1 of this Article, the State Bank of Vietnam branch issues a document approving or disapproving the proposal of the people's credit fund; in case of non-approval, the document must clearly state the reasons."

4. Amends and supplements Article 44 as follows:

"Article 44. Responsibilities of the State Bank of Vietnam branch where the credit organization is a cooperative bank places its branch, transaction office, representative office, and public service unit of the cooperative bank

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

2. Cooperates with the Banking Inspection and Supervision Agency to handle issues arising related to the organization and activities of branches, transaction offices, representative offices, and public service units of cooperative banks within their jurisdiction.

3. Performs the task of managing, inspecting, and supervising the activities of branches, transaction offices, public service units, and representative offices of cooperative banks within their jurisdiction according to the provisions of this Circular and other relevant documents of the State Bank of Vietnam.

4. Issues a document reporting and proposing to the Governor of the State Bank of Vietnam to terminate operations and dissolve branches, transaction offices, representative offices, and public service units of cooperative banks when one of the cases specified in Clause 1 of Article 25 of this Circular occurs."

5. Replaces and abolishes certain phrases, points as follows:

a) Replaces the phrases "State Bank of Vietnam branch, Banking Inspection and Supervision Bureau" at Clause 2, Clause 3 of Article 8, Clause 3 of Article 18, Clause 3 of Article 20; "Banking Inspection and Supervision Bureau or State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Bureau)" at Clause 3 of Article 15, Clause 1 of Article 16, Article 17, Article 19, Clause 2, Clause 4 of Article 20, Clause 2 of Article 21, Article 23, Clause 3 of Article 27; "Banking Inspection and Supervision Bureau, State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Bureau)" at Clause 4 of Article 15, Clause 2 of Article 21; "State Bank of Vietnam branch or Banking Inspection and Supervision Bureau" at Clause 4 of Article 20, Clause 1 of Article 24; "State Bank of Vietnam branch and Banking Inspection and Supervision Bureau" at Clause 4 of Article 27; "State Bank of Vietnam branch or of Banking Inspection and Supervision Bureau" at Clause 4 of Article 27; "State Bank of Vietnam branch (where there is no Banking Inspection and Supervision Bureau)" at Clause 3 of Article 28; "State Bank of Vietnam branch and Banking Inspection and Supervision Bureau (where there is a Banking Inspection and Supervision Bureau)" at Article 35; "State Bank of Vietnam branch (where there is a Banking Inspection and Supervision Bureau)" at Clause 3 of Article 45 with the phrase "State Bank of Vietnam branch";

b) Abolishes the phrase "(except in provinces and centrally-administered cities where there is a Banking Inspection and Supervision Bureau)" at Point b Clause 2 of Article 14 and the phrase "within the province or centrally-administered city where there is a Banking Inspection and Supervision Bureau" at Clause 2 of Article 45;

c) Repeal the phrase "The Banking Inspection and Supervision Department requests the State Bank branch (where the Banking Inspection and Supervision Department is located) to dispatch staff to join the inspection team to examine compliance with warehouse safety standards as prescribed by the State Bank" in Clause 4, Article 15; the phrase "The Banking Inspection and Supervision Department requests the State Bank branch (where the Banking Inspection and Supervision Department is located) to dispatch staff to join the inspection team to examine compliance with cash storage safety standards as prescribed by the State Bank for the proposed location of the cooperative bank’s transaction office where the cooperative bank has a cash storage facility" in Point b, Clause 2, Article 20; and the phrase "For provinces and cities where the Banking Inspection and Supervision Department is located, during the course of inspection and supervision, if cases as stipulated in Clause 2 of this Article are discovered, the Banking Inspection and Supervision Department shall issue a document requesting the State Bank branch to cease operations and dissolve the credit union’s transaction office. Within five working days from the date of receipt of the request document from the Banking Inspection and Supervision Department, the State Bank branch shall issue a document stating the reasons and send it to the credit union to require cessation of operations and dissolution of the transaction office" in Clause 3, Article 41;

d) Repeal Point b, Clause 2, Article 33.

1. Supplement Clause 3 of Article 5 as follows:

"3. The Governor of the State Bank authorizes the Head of Banking Inspection and Supervision to consider and decide to amend and supplement the License for changes in the name of microfinance organizations."

2. Supplement Clause 6 of Article 6 as follows:

"6. The Governor of the State Bank authorizes the Head of Banking Inspection and Supervision to consider and decide to amend and supplement the License for changes in the location of the headquarters of microfinance organizations."

3. Amend and supplement Article 14 as follows:

"Article 14. Responsibilities of the Banking Inspection and Supervision Authority

1. Examine the dossier and decide to amend and supplement the License for changes in microfinance organizations as prescribed in Articles 5 and 6 of this Circular.

2. Examine the dossier and submit to the Governor of the State Bank for consideration and decision on changes in microfinance organizations as prescribed in Articles 7, 8, 9, 10, 11, 12, and 13 of this Circular.

3. Submit to the Governor of the State Bank for issuance of a document seeking opinions from the People's Committee of the province or centrally governed city where the microfinance organization’s headquarters is located regarding the purchase and transfer of ownership shares.

4. Seek opinions from the People's Committee of the province or centrally governed city where the microfinance organization proposes to relocate its headquarters when the new location is outside the province or centrally governed city where the current headquarters is located.

5. Seek opinions from the State Bank branch where the microfinance organization’s headquarters is located in the following cases:

a) Changes in the name or location of the headquarters of the microfinance organization;

b) Changes in the term of operation of the microfinance organization;

c) Purchase and transfer of ownership shares of the microfinance organization.

6. Notify the State Bank branch where the microfinance organization’s headquarters is located about documents approving, Decisions amending and supplementing the License for changes in the microfinance organization."

Article 6. Responsibility for Organizing Implementation

The Director of the Office, the Head of Banking Inspection and Supervision, Heads of units under the State Bank, and credit institutions are responsible for implementing this Circular.

Article 7. Implementation Provisions

This Circular takes effect on March 1, 2023./.