CIRCULAR

ON COOPERATIVE BANK

The Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam on cooperative bank, which enters into force from January 01, 2013, shall be amended by:

The Circular No. 09/2016/TT-NHNN dated June 17, 2016 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam on cooperative bank, which enters into force from August 15, 2016.

The Circular No. 05/2018/TT-NHNN dated March 12, 2018 of the Governor of the State Bank of Vietnam prescribing application and procedures for approval for changes and lists of personnel to be elected and appointed of credit institutions that are cooperatives, which enters into force from June 01, 2018.

The Circular No. 17/2018/TT-NHNN dated August 14, 2018 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches, which enters into force from October 01, 2018.

The Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the network of people's credit funds, which enters into force from January 01, 2020.

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

...

...

...

Pursuant to the Law on Enterprises No. 60/2005/QH11 dated November 29, 2005;

Pursuant to the Law on Cooperatives No. 18/2003/QH11 dated November 26, 2003;

Pursuant to the Government's Decree No. 96/2008/ND-CP dated August 26, 2008 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the request of the Head of Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby provides for licensing, organization and operation, powers and responsibilities of the cooperative bank[1]^,[2],[3],[4].

Chapter I

GENERAL PROVISIONS

Article 1. Scope 

This Circular provides regulations on licensing for, organization and operation, powers and responsibilities of, cooperative bank; processes and procedures for transformation of the Central People's Credit Fund into the cooperative bank.

...

...

...

1. Cooperative bank.

2. People’s credit funds.

3. Institutional and individual entities involved in the establishment of, licensing for, organization and operation, powers and responsibilities of, cooperative bank.

Article 3. Interpretation of terms

For the purpose of this Circular, the terms below shall be construed as follows:

1. “First General Members’ Meeting” refers to the first meeting attended by members of the cooperative bank to ratify the cooperative bank’s Charter and the cooperative bank establishment scheme; elect the Chairperson and members of the Management Board, Chief and members of the Control Board in the first tenure; resolve on other issues pertaining to the establishment of the cooperative bank.

2. “capital contributed to establish membership interest” refers to the minimum amount of capital that must be contributed to be eligible to become a member of the cooperative bank.

3. “annual contributed capital” refers to the amount of capital that a member must contribute on an annual basis to maintain its membership interest.

Article 4. Licensing authority

...

...

...

2. The SBV shall be entitled to refuse to grant the license in the event that the institutional entity applying for that license fails to comply with the Law on Credit Institutions and this Circular.

Article 5. Duration and scope of operation

1. The maximum operational duration of the cooperative bank is 99 (ninety nine) years.

2. The cooperative bank shall operate within the territory of the Socialist Republic of Vietnam.

3. The cooperative bank shall be entitled to establish its domestic branches, representative offices and administrative units, and overseas representative offices, after obtaining written approval from the SBV.

Article 6. Nature and objectives of operation

The cooperative bank shall be considered as a credit institution which is structured in a cooperative form with the main objective of building associations in, and assuring safety for, the network of people's credit funds through financial support and supervision of operations across this network. Major functions of the cooperative bank shall comprise capital trade-off and implementation of banking operations in which cooperative members are people's credit funds.

Article 7. Principles for preparing an application 

1. An application for the license granted to the cooperative bank must be made in the Vietnamese language.

...

...

...

Chapter II

LICENSING PROVISIONS

Section 1: GRANT OF LICENSE TO THE COOPERATIVE BANK

Article 8: Licensing requirements

1. The cooperative bank must have a minimum charter capital which is equal to the statutory capital prescribed by the Government on the date of submission of application.

2. Its members that are people’s credit funds and other legal entities must satisfy the requirements set forth in Article 34 hereof.

3. Managers, executive officers and members of the Control Board of the cooperative bank must meet regulatory eligibility and qualification requirements set forth in the Law on Credit Institutions and Article 23, 24 and 25 hereof.

4. It has a Charter conformable with regulations laid down in the Law on Credit Institutions, the Law on Cooperatives and other relevant law regulations.

5. It has an establishment scheme and business plan of which feasibility has been proven within 03 (three) initial years of its operations.

...

...

...

Article 9. Application for license

1. An application form signed by the Chairperson of the Management Board of the cooperative bank applying for the license (using the form in Appendix No. 03 hereof).

2. The cooperative bank’s Charter.

3. The scheme for establishment of the cooperative bank that contains:

a) Necessity of such establishment;

b) Name of the cooperative bank, location of its head office, operational duration, charter capital available upon establishment, and scope of operations, all of which must accord with the Law on Credit Institutions and this Circular.  

c) Proportion of capital contributions by cooperative members in which those holding 05%, or more, of its charter capital must be specified;

d) Proposed organizational and personnel structure:

- Organizational chart;

...

...

...

+ Management Board: Chairperson, Board Members;

+ Control Board: Head, Board Members and full-time Board Members;

+ General Director, Deputy General Directors, Chief Accountant, Directors of branches, and equivalents, as defined in the Charter of the cooperative bank;

dd) Risk management capability: Risks that may be incurred during the cooperative bank’s operations (such as credit risks, operational risks, market risks and liquidation risks, etc.) and risk prevention and control measures;

e) Information technology:

- Planned financial investment in information technology;

- Evaluation of competence in applying information technology which clearly specifies the duration for technological investment, type of technology to be applied, recommended officers and their ability to apply information technology, guarantee of compatibility and connectivity of the IT system with/to the management system of the SBV for the purpose of providing required information to meet its managerial requirements;

g) Strategy for developing and expanding the operational network, and providing and developing banking services (providing a thorough analysis of services that will be provided, and target customers, etc.);

h) Internal control and audit system:

...

...

...

- Internal regulations as prescribed in Clause 2 Article 93 of the Law on Credit Institutions.

i) Business plan for the first 03 years, at least including expected operating income, prudential ratios, operational efficiency indicators and demonstration of competence in implementing that plan in each year.

4. Required documents about persons recommended participating in management, control and administration activities:

a) List of recommended personnel participating in management, control and administration activities;

b) Résumé (according to Appendix 01 hereof) and police record as defined by laws;

c) Duplicate copy of ID card, passport or other legal identity documents;

d) Public report on interests involved as prescribed in Article 118 of the Law on Enterprises;

dd) Duplicate copies of degrees or diplomas used as a proof of their educational and professional level.

5. Required documents submitted by members:

...

...

...

- Name and location of its head office, establishment license or business registration certificate, contributed capital amount, capital contribution ratio, and time limit for capital contribution;

- Full name, permanent residence, nationality, number, date and place of issue of ID card or passport or other legal identity documents with respect to persons who are contributed capital representatives;

b) Application for membership in the cooperative bank;

c) Establishment license or business registration certificate or other equivalents (applicable to legal entities which are not credit institutions);

d) Regulatory authorities’ written approval granted to institutional entities (other than people's credit funds) for their contribution of capital to the cooperative bank (where available);

dd) Charter (applicable to legal entities which are not credit institutions);

e) Written authorization given to a representative of a legal entity (including representative of contributed capital portion) to become a member of the cooperative bank in accordance with laws;

g) ID card or passport or other legal identity documents of the legal representative of the legal entity which is not the credit institution contributing its capital to the cooperative bank;

h) Declaration of related parties of members which are not people's credit funds (according to Appendix No. 02 hereof);

...

...

...

k) Declaration of details of contributed capital, number and proportion of shares held by each member at other credit institutions.

6. Written confirmation of the right to legally own or use location of head office.

7. Resolution of the First General Members’ Meeting on establishment of the cooperative bank.

8. Resolution of the First General Members’ Meeting on election of Chairperson, members of the Management Board, Head and members of the Control Board.

9. The Management Board’s decision on appointment of the General Director of the cooperative bank.

Article 10. Licensing procedures

1. The cooperative bank submits an application which includes the documents referred to in Article 7 and 9 hereof directly or by post to the SBV (Banking Supervision Agency).

2. Within 30 days from the receipt of the application, the SBV (Banking Supervision Agency) sends the applicant its confirmation of whether all documents are valid or need to be supplemented or modified to meet regulations.

3. Within 180 days from the receipt of valid application, the SBV shall issue the license or sends a written refusal to issue the license in which sound grounds must be stated.

...

...

...

1. The cooperative bank granted the license as defined in Section I Chapter II hereof must carry out its business registration, information disclosure and reporting on conditions for commencement of its operations in accordance with Article 25 and 26 of the Law on Credit Institutions.

2. The cooperative bank must, whether directly or by post, send the SBV’s branch of the province or city where its head office is located the notice of conditions for commencement of its operations as prescribed in Clause 1 of this Article at least 15 days before the scheduled commencement date.

Section 2: TRANSFORMATION OF THE CENTRAL PEOPLE’S CREDIT FUND TO THE COOPERATIVE BANK

Article 12. Procedures, and evaluation of application, for approval of transformation and grant of license to cooperative bank

1. The Central People’s Credit Fund must hold a general meeting on its transformation into the cooperative bank (hereinafter referred to as the “transformation general meeting”) as stipulated by Article 13 hereof, and submit an application to the SBV for its approval of such transformation as provided for in Article 14 hereof.

2. Within a maximum period of 60 business days from the receipt of the SBV’s approval of transformation of the Central People’s Credit Fund into the cooperative bank, the former must convene its first general members’ meeting to perform the following tasks: 

a) Ratify the cooperative bank’s Charter.

b) Officially elect the Chairperson and members of the Management Board, Head and members of the Control Board of the cooperative bank in the first tenure according to the list of nominees as defined in Clause 1 Article 22 hereof.

c) Ratify the business plan for the first 3 years of its operations.

...

...

...

4. The Banking Supervision Agency shall be responsible for receiving and evaluating the received application, and then requesting the SBV’s Governor in writing for his/her approval of transformation and grant of the license to the cooperative bank.

Article 13. Transformation general meeting

1. The general meeting on transformation of the Central People’s Credit Fund into the cooperative bank (hereinafter referred to as “transformation general meeting”) shall be convened by the Management Board of the Central People’s Credit Fund. Holding the transformation general meeting in the form of a plenary meeting attended by all members or members’ delegates of the Central People’s Credit Fund, and form of election of members’ delegates attending the transformation general meeting, shall be subject to the decision made by the Management Board of the Central People’s Credit Fund.

2. The transformation general meeting shall take on the following duties:

a) Ratify the scheme for transformation of the Central People’s Credit Fund into the cooperative bank. This scheme must, inter alia, include the following:

- Necessity for transformation of the Central People’s Credit Fund into the cooperative bank;

- Name of the cooperative bank, its head office, operational duration and its charter capital;

- Operational contents that conform to the Law on Credit Institutions and this Circular;

- Organization, management and administration system;

...

...

...

+ Chairperson and members of the Management Board;

+ Head and members of the Control Board;

+ General Director.

b) Ratify the cooperative bank’s draft Charter;

c) Ratify the list of members of the cooperative bank.

Article 14. Application and procedures for approval of transformation of the Central People’s Credit Fund to the cooperative bank

1. After the transformation general meeting ends, the Central People’s Credit Fund shall prepare an application requesting the SBV to approve the transformation of the Central People’s Credit Fund into the cooperative bank, and send it, whether directly or by post, to the SBV (Banking Supervision Agency). The application includes:

a) The written request submitted by the Chairperson of the Management Board of the Central People’s Credit Fund to the SBV for its approval of transformation of the Central People’s Credit Fund into the cooperative bank;

b) Minutes of the transformation general meeting;

...

...

...

- Ratification of the scheme for transformation of the Central People’s Credit Fund into the cooperative bank;

- Ratification of the cooperative bank’s draft Charter;

- Ratification of the list of members of the cooperative bank.

d) Scheme for transformation of the Central People’s Credit Fund into the cooperative bank;

dd) Charter of the cooperative bank;

e) List of members of the cooperative bank.

2. Within 10 business days from the receipt of a valid and adequate application, the SBV shall grant the decision to approve transformation of the Central People’s Credit Fund into the cooperative bank. 

Article 15: Licensing requirements

1. Persons in charge of management and administration tasks, and members of the Control Board of the cooperative bank, must meet regulatory qualification and other eligibility requirements as applied to the Central People's Credit Fund at the date of submission of application for that transformation.

...

...

...

3. It has a head office and provides sufficient infrastructure facilities and IT system for ensuring its normal operations.

Article 16. Application for license granted to cooperative bank

An application for a license granted to the cooperative bank includes:
1. The written request submitted by the Chairperson of the Management Board of the Central People’s Credit Fund to the SBV for grant of a license to the cooperative bank;

2. The cooperative bank’s Charter ratified by the first general members’ meeting;

3. Minutes of the first general members’ meeting;

4. Resolution of the first general members’ meeting which has been ratified and includes the following:

a) Ratification of the cooperative bank’s Charter;

b) Result of official election of members of the Management Board and members of the Control Board;

c) Ratification of the business plan for the first 3 years of its operations.

...

...

...

6. Documents of members which are legal entities other than people’s credit funds (where applicable), including: list, location of head office and contributed capital amount.

7. Written confirmation of the right to legally own or use location of head office of the cooperative bank.

8. The Management Board’s decision on appointment of the General Director of the cooperative bank.

9. The business plan for the first 3 years of operations, ratified by the first general members' meeting.

Article 17. Procedures for grant of license to cooperative bank

1. Within 15 business days from the date on which the first general members’ meeting is held, the Central People’s Credit must submit an application which includes the documents referred to in Article 16 hereof, whether directly or by post, to the SBV (Banking Supervision Agency). 

2. Within 10 business days from the receipt of a valid and adequate application, the SBV shall make its decision to grant the license.

Section 3: LICENSE AND LICENSING FEE

Article 18. Contents of a license

...

...

...

a) License number, issue place and date;

b) Name of the cooperative bank:

- Full and abbreviated name written in Vietnamese;

- Full and abbreviated name written in English (if any);

- Transaction name (if any).

c) Location of head office;

d) Contents and scope of operations;

dd) Operational territories;

e) Charter capital;

...

...

...

2. The SBV shall specifically provide for contents, scope of operations, operational territories and operational duration in the license according to the form in Appendix No. 05 hereof.

Article 19. Licensing fee

1. The amount of licensing fee paid by the cooperative bank shall conform to regulations on fees and charges.

2. Within 15 (fifteen) business days from the date of issuance of the license, the cooperative bank must pay the licensing fee at the SBV’s Operations Center.

3. The licensing fee amount referred to in Clause 1 of this Article shall not be deducted from the charter capital and refunded in all cases.

1. The cooperative bank granted the license must use correct name and carry out operations as specified in the license granted by SBV, and avoid performing any non-bank activities and business operations which are not specified in the license.

2. The cooperative bank shall not erase, purchase, sell, transfer, lease, and authorize free use of, the license.

3. Where the license is lost, stolen, damaged or burnt or otherwise destroyed, the cooperative bank must send a written notification of reasons directly or by post to the SBV (Banking Supervision Agency) to request its issuance of a copy of the license from the original register in accordance with laws. Within 02 (two) business days from the receipt of the written request, the SBV must consider that request and decide to issue a copy of the license from the original one to the cooperative bank.

Chapter III

...

...

...

Article 21. Organization and operation of Management Board, Control Board and General Director

1. The Management Board of the cooperative bank is an organ accorded the power to manage the cooperative bank and entitled to act on behalf of the cooperative bank to decide and implement rights and obligations of the cooperative bank, except for issues that fall within the authority of the General Members' Meeting.

2. The control board of the cooperative bank shall conduct the internal audit, control and assessment of compliance with laws and regulations, internal regulations, Charter and any resolution or decision made by the General Members' Meeting and/or the Management Board.

3. The General Director is the highest-level executive of the cooperative bank and shall assume his/her accountability to the Management Board for implementation of his/her powers and obligations.

4. The SBV shall appoint a person to administer the funds given by the Government to the cooperative bank, who is required to meet eligibility standards and requirements set out in the Law on Credit Institutions and this Circular in order to be considered and elected by the General Members' Meeting to hold the position as the Chairperson of the Management Board, Head of the Control Board, a member of the Management Board cum General Director of the cooperative bank.

5. The Management Board, Control Board and General Director of the cooperative bank shall be organized and operate in accordance with the Law on Credit Institutions and Article 22, 23, 24, 25, 26, 27 and 28 hereof.

Article 22. Approval of list of recommended persons to be elected or appointed to become members of Management Board, Control Board and General Director

1. The written approval granted by SBV for the list of recommended persons to be elected or appointed to become members of the Management Board, Control Board and General Director of the cooperative bank must be obtained before election or appointment takes place.  Those who are elected or appointed to become members of  the Management Board, Control Board and General Director of the cooperative bank must be present in the list approved by the SBV.  

2.[6] (abrogated)

...

...

...

1. The Chairperson of the Management Board must:

a) acquire at least 05 (five) years’ experience in the banking sector;

b) be used to hold a position as the manager or executive officer in a banking institution for at least 02 (two) years in the past;

c) obtain a university degree or higher in economics, finance, accounting, audit, banking or law.

2. A member of the Management Board must:

a) acquire at least 02 (two) years’ experience in the banking sector;

b) be used to hold a position as the manager or executive officer in a banking institution for at least 01 (one) year in the past;

c) obtain a university degree or higher in economics, finance, accounting, audit, banking or law.

3. The Chairperson or member of the Management Board is not the one provided for in Article 33 and 34 of the Law on Credit Institutions.

...

...

...

1. A member of the Control Board must:

a) acquire at least 03 (three) years’ experience in the field of accounting, audit, finance or banking;

b) obtain a university degree or higher in economics, finance, accounting, audit or banking.

2. A full-time member of the Control Board must reside in Vietnam during his/her incumbency, and shall be prohibited from holding other positions or performing other tasks at any other credit institution or enterprise.

3. A member of the Control Board is not the one referred to in Article 33 and 34 of the Law on Credit Institutions.

Article 25. Requirements for becoming General Director

1.[7]  (abrogated)  

2. Be used to hold a position as the manager or executive officer in a banking institution for at least 03 (three) years in the past;

3. Obtain a university degree or higher in economics, finance, banking, business administration or law.

...

...

...

5. Be not the one referred to in Article 33 and 34 of the Law on Credit Institutions.

Article 26. Duties and powers of Chairperson of Management Board

The Chairperson of the Management Board is the legal representative of the cooperative bank and responsible for performing the following duties and powers:

1. Set up the plan and schedule for operations of the Management Board, assign tasks, conduct overall monitoring and oversight of performance of members of the Management Board.

2. Prepare work contents, agenda, convene and preside over meetings of the Management Board and the General Members’ Meeting.

3. Assume his/her accountability to the General Members’ Meeting and the Management Board for his/her assigned tasks.

4. Sign documents issued by the General Members’ Meeting and the Management Board in accordance with laws and Charter of the cooperative bank.

5. Perform other powers and duties specified in the Charter of the cooperative bank.

Article 27. Management Board’s meeting

...

...

...

2. If the first meeting of the Management Board is adjourned on the grounds that the number of members attending is too small to constitute a stipulated quorum, the Chairperson of the Management Board must convene the second meeting within the following 15 business days.   After two postponements, if no quorum can yet be constituted, the Chairperson of the Management Board shall be responsible for reporting to the next General Members’ Meeting to evaluate membership of the members that do not attend the meeting and take appropriate disciplinary actions.

3. All contents of, and conclusions reached in, each session of the General Members' Meeting must be recorded into the minute book. Minutes of meetings of the Management Board must be fully signed by the meeting chair and secretary.  The meeting chair and secretary shall assume joint responsibility for accuracy and integrity of these minutes.  Members of the Management Board shall retain their opinions and retained opinions shall be recorded in the meeting minutes.

Article 28. Duties and powers of Head of the Control Board

1. Bear responsibility for assigning and directing members of the Control Board to perform duties and powers of the Control Board.

2. Establish programs and plans for inspection, oversight and monitoring of performance of duties by each member.

3. Convene and preside at the meetings of the Control Board.

4. Authorize one of the members of the Control Board to act on behalf of the Head to undertake tasks during his/her absence.

5. Request the Management Board to convene an extraordinary meeting to handle violations against laws and the Charter of the cooperative bank.

6. Convene and preside at the extraordinary General Members’ Meeting in accordance with Clause 3 Article 37 hereof.

...

...

...

Chapter IV

CHARTER CAPITAL, CONTRIBUTED CAPITAL, AND TRANSFER AND RETURN OF CONTRIBUTED CAPITAL OF THE COOPERATIVE BANK

Article 29. Charter capital

1. The charter capital is the amount of capital specified in the Charter of the cooperative bank, including:

a) Capital contributed by member people's credit funds;

b) Funds provided by Government;

c) Capital contributed by other legal entities.

2. Capital-contributing members cannot use trust or borrowed funds in any form for contributing capital to the cooperative bank, and must clearly identify the funding source, undertake and bear responsibility for legality of the contributed capital.

3. Capital contributions made to the cooperative bank must strictly observe applicable laws and conform to the following requirements:

...

...

...

b) With respect to legal entities operating in the business activities that conform to statutory capital requirements, the maximum agreed-upon amount of contributed capital shall not exceed the owner's equity less the predetermined statutory capital;

c) With respect to other legal entities, the maximum agreed-upon amount of contributed capital shall equal the owner's equity minus the difference between long-term investments and long-term liabilities (method of determination specifically provided for in Appendix No. 04 hereof).

Article 30. Form of contribution to charter capital

Contributions to the charter capital of the cooperative bank may be made in Vietnamese dong or other kinds of asset.

Other kinds of asset used as contributions to the charter capital must be those assets of which the right of ownership and use is proven by legal certificates (those which are necessary assets directly assisting in operations of the cooperative bank).   Valuation and transfer of the right to own assets given as capital contributions shall comply with applicable laws.

Article 31. Contribution of capital to participating in cooperative bank

1. The minimum amount of capital contributed to establishing the membership interest in the cooperative bank is 10,000,000 (ten million) dong. 

2. The minimum annual amount of contributed capital of the cooperative bank’s member is 1,000,000 (one million) dong. 

The specific amount of contributed capital shall be decided by the General Members’ Meeting. Members of the cooperative bank shall be exempted from paying annual contributed capital in the first financial year after the date of commencement of its operations.  Annual capital contribution must be completed not later than 30 (thirty) days from the closing date of the General Members' Meeting.

...

...

...

Article 32. Method for distribution of profits

Distribution of profits based on the amount of contributed capital (capital contributed to establishing membership interest and annual contributed capital), and level of usage of services provided by the cooperative bank, shall be decided by the General Members' Meeting and conform to laws and regulations.  

Article 33. Transfer and return of contributed capital

1. Transfer of contributed capital by members shall be carried out in accordance with the following provisions:

a) If a member is a people’s credit fund, it shall be allowed to transfer a part of its contributed capital (but it shall be required to maintain the minimum amount of capital contributed to establishing membership interest and annual contributed capital) to other legal entities that meet requirements set forth in Article 34 hereof;

b) If a member is not a people’s credit fund, it shall be allowed to transfer either all or part of its contributed capital to other legal entities that meet requirements set forth in Article 34 hereof. If a part of contributed capital is transferred, a cooperative member must maintain the minimum amount of capital contributed to establishing membership interest and annual contributed capital as provided for by Article 31 hereof.

2. Upon termination of membership as stipulated by Article 35 hereof, the cooperative bank’s member may choose to transfer its contributed capital, interests and obligations to other legal entities, or receive its contributed capital returned or profits earned therefrom (where applicable) and other benefits defined in Clause 4 of this Article.

3. In case of termination of membership, transfer of a cooperative member’s contributed capital to other legal entities must meet requirements set out in Article 34 hereof.

4. Return of contributed capital and profits earned therefrom (where applicable) to members must take into consideration the financial status of the cooperative bank in the year-end financial report, and may be acceptable only if the following requirements are observed:

...

...

...

b) Such return does not result in any violation against the prudential ratio stipulated by the SBV;

c) Sufficient liquidity is maintained at the date upon which such return occurs;

d) The cooperative bank’s member has fully discharged its financial obligations to the cooperative bank, including:

- Have already repaid all of debts owed (both principal and interest);

- Have already compensated for losses for which it assumes several or joint liability;

- Have already managed to deal with business losses and risks in proportion with the amount of contributed capital for which it assume joint liability under the decision made by the General Members' Meeting.

5. Return and transfer of all of a member’s contributed capital shall be subject to ratification by the General Members’ Meeting.

Chapter V

PROVISIONS ON MEMBERS OF THE COOPERATIVE BANK

...

...

...

1.[8] With respect to people’s credit funds and other credit institutions, they must not be subject to any special control as provided in Clause 1 Article 145 of the Law on Credit Institutions (as amended) at the date of submission of application for membership.

2. With respect to other legal entities, they must generate operating profits in the year prior to the application year.

3. Those stipulated in Clause 1 and 2 of this Article must contribute the predetermined amount of capital as prescribed by Article 31 hereof, and must submit applications for membership and assign their legal representatives to participate in the cooperative bank.  

Article 35. Termination of membership

A member of the cooperative bank shall have its membership terminated if:

1. The member’s legal personality is terminated.

2. The member which is not a people’s credit fund:

a) does not have its representative that satisfies requirements set forth in laws and the Charter of the cooperative bank;

b) fails to make sufficient annual capital contributions as stipulated by Clause 2 Article 31 hereof;

...

...

...

3. The member is allowed to resign, or is discharged, from membership in the cooperative bank by the General Members’ Meeting in accordance with laws and the Charter of the cooperative bank.

Chapter VI

GENERAL MEETING OF COOPERATIVE BANK’S MEMBERS

Article 36. First General Members’ Meeting

The first General Members’ Meeting is a plenary meeting of members or a meeting of representatives of members of the cooperative bank that works on the following contents: 

1. Ratify the scheme for establishment of the cooperative bank.

2. Ratify the cooperative bank’s Charter.

3. Elect the Chairperson and members of the Management Board, Head and members of the Control Board of the cooperative bank in the first tenure according to the list of nominees as defined in Clause 1 Article 22 hereof.

4. Ratify the business plan for the first 3 years of its operations.

...

...

...

1. The General Members’ Meeting is an organ accorded the ultimate decision-making power of the cooperative bank to perform duties and powers referred to in Article 80 of the Law on Credit Institutions.

2. The General Members’ Meeting must be held once a year and convened by the Management Board within 03 (three) months from the last date of a given financial year.

3. An extraordinary General Members’ Meeting shall be held in the following cases:

a) The Management Board convenes such meeting on grounds of the benefits of the cooperative bank or upon the written request of at least 1/3 (one-third) of total members; 

b) The meeting is held upon the request of the Control Board as provided in Clause 6 Article 84 of the Law on Credit Institutions;

c) The meeting is held upon the request of the SBV in case there is any event that may cause adverse impacts on safety for operations of the cooperative bank;

d) The meeting is held in other cases as defined be the Charter of the cooperative bank.

Within 15 (fifteen) days from the receipt of the written call for the General Members' Meeting from at least 1/3 (one-third) of the members, if the Management Board fails to convene the extraordinary General Members' Meeting, members calling that meeting may request the SBV in writing to take charge of holding and opening of the General Members’ Meeting whenever necessary.

Article 38. Authority of General Members’ Meeting

...

...

...

1. Annual income statements; Performance reports of the Management Board and Control Board.

2. Recommendation for profit distribution.

3. Business plan and objectives for the coming year.

4. Increase or decrease in the charter capital, and level of capital contributed by the cooperative bank’s members.

5. Election, appointment and dismissal of the Chairperson, other members of the Management Board, Head and other members of the Control Board.

6. The list of new members admitted into the cooperative bank; forced resignation of members from the cooperative bank as requested by the Management Board.

7. Amendments to the cooperative bank’s Charter.

8. Dissolution and bankruptcy of the cooperative bank.

9. Others suggested by the Management Board, Control Board or at least 1/3 (one-third) of total members of the cooperative bank.

...

...

...

1. The General Members’ Meeting of the cooperative bank can be held in a form of a plenary meeting of its members or a meeting of representatives of members (hereinafter referred to as the “General Members’ Meeting”).

2. The plenary meeting of members or the meeting of representatives of members shall have the same duties and powers. Based on current conditions, the Management Board shall decide the method for holding of the General Members' Meeting, election, number of representatives of members participating in the General Members’ Meeting in each session.

3. The number of representatives of members invited to participate in the General Members’ Meeting shall not be less than 20% of the members.

4. The General Members’ Meeting shall be deemed valid if at least 2/3 (two-thirds) of the members or representatives of members invited are present.

5. If a quorum (including either members or representatives of members) is not present as stipulated by Clause 4 of this Article, the Management Board or Control Board must postpone the General Members' Meeting and re-invite them within 30 (thirty) days from the date of postponement (with respect to the annual General Members’ Meeting, the time limit for postponement and re-invitation shall not exceed the time limit for holding of the General Members’ Meeting as stipulated in Clause 2 Article 37 hereof).

6. Decision to amend or supplement the Charter, resolve and file for bankruptcy of the cooperative bank shall be approved only if more than 3/4 (three-quarters) of the members or representatives of members present at the General Members’ Meeting vote in favor of that decision.

7. Decisions to handle other issues shall be approved only if more than 1/2 (half) of the members present at the General Members' Meeting vote in favor of these decisions.

8. Casting votes at the General Members’ Meeting shall not be subject to the amount of capital contributed, or titles held, by members of the cooperative bank.  Each member shall be given only one ballot. A ballot shall represent the number of members of which the representative acts on behalf.

Article 40. Notice of convening of General Members’ Meeting

...

...

...

Chapter VII

OPERATIONS OF THE COOPERATIVE BANK

Article 41. Transactions with member people's credit funds[9]

1. Receive deposits from and offer loans for trade-off purposes to member people’s credit funds under capital trade-off regulations.

Institution and contents of capital trade-off regulations must conform to the following principles:

a) People's credit funds deposit their money (either indefinite or definite term) in the cooperative bank for capital trade-off purposes. In case of premature withdrawal, people’s credit funds must inform the cooperative bank in advance;

a) Member people's credit funds are granted loans from the cooperative bank for capital trade-off purposes when demands for capital used for credit expansion arise;

c) Subsidization regulations on the deposit facility interest rate must be applied, and the lending facility interest rate on loans for trade-off purposes must be explicit, unprofitable and promote association between the cooperative bank and its member people’s credit funds; 

d) Specific regulations on applicable subjects, limits, processes, dossiers and evidence documents relating to acceptance of deposits and grant of loans on a trade-off basis must be made;

...

...

...

2. Offer loans to member people's credit funds to deal with temporary difficulties in liquidity.

3. Open checking accounts, and provide payment instruments to member people's credit funds.

4. Design, develop and use new products and services in activities of member people’s credit funds to meet these members’ demands and serve the purpose of multiplying community benefits throughout its area.

 5. Perform other banking transactions with member people’s credit funds as prescribed.  

Article 42. Transactions with customers other than member people's credit funds

1. The cooperative bank shall be entitled to perform certain banking and other business activities according to Section 2 Chapter IV of the Law on Credit Institutions after obtaining a written approval from the SBV.

2. The cooperative bank shall offer loans to customers other than member people's credit funds after meeting capital trade-off demands of member people's credit funds.

3. As the case may be, the SBV can impose restrictions on credit granted by the cooperative bank to customers other than member people's credit funds.

Article 43. Application of regulations on safety for banking activities

...

...

...

Chapter VIII

RIGHTS AND RESPONSIBILITIES OF THE COOPERATIVE BANK IN A RELATIONSHIP WITH PEOPLE’S CREDIT FUNDS 

Article 44. Rights[10]

1. Obtain information about operations of people’s credit funds from the SBV.

2. Request people’s credit funds to provide information and reports used for capital trade-off and system security monitoring purposes.

3. Inspect and oversee use of loans and capacity to repay loans obtained by member people’s credit funds from the cooperative bank.

 4. Inspect and oversee operations of member people’s credit funds upon request by the SBV regarding subjects, contents, scope and time limit for inspection.

Article 45. Responsibilities [11]

1. Provide member people’s credit funds with guidance on and training in banking and information technology practices.

...

...

...

3. Participate in implementation of remedial measures in the event that member people’s credit funds are faced with difficulties or incur risks of safety in their activities.

4. Adopt capital trade-off regulations referred to in Clause 1 Article 41 hereof after obtaining approval from the General Members’ Meeting of the cooperative bank.

5. Assist people’s credit funds in carrying out internal audits as requested by these funds.

6. Contribute opinions in writing on the proposed list of personnel to be elected and appointed to become the Chairperson and other members of the Management Board, Head and other members of the Control Board, Director of member people’s credit funds upon the request of the SBV’s branches of centrally-affiliated cities and provinces.  

7. Perform other responsibilities specified in the Charter of the cooperative bank and laws.

Chapter IX

IMPLEMENTARY PROVISIONS

Article 46. Responsibilities of Banking Supervision Agency[12]

1. Act as the focal point for dealing with difficulties that may arise during the implementation of this Circular.

...

...

...

3. Act as a focal point and collaborate with SBV's branches to request the SBV's Governor to request the cooperative bank to inspect its member people's credit funds as prescribed in Clause 4 Article 44 hereof.

 5. Provide information and data for competent bodies or units on the cooperative bank's activities, and compliance with relevant laws on the cooperative bank's activities.

Article 47. Responsibilities of SBV’s affiliates [13]

1. SBV’s affiliates shall:

a) Monitor, and cooperate with the Banking Supervision Agency on, management of the cooperative bank’s activities within their jurisdiction and competence;

b) Cooperate with the Banking Supervision Agency in appraising application for the license.

2. SBV's branches shall cooperate with the Banking Supervision Agency to request the cooperative bank to implement Clause 4 Article 44 hereof.

Chapter X

ENTRY INTO FORCE[14]^,[15],[16]^,[17]  

...

...

...

1. The cooperative bank shall uphold and continue conformity with legal powers, obligations and benefits, as well as assume responsibilities for handling any unsolved issues that exist during the operation of the Central People's Credit Fund in conformity with regulations laid down in the Law on Credit Institutions and relevant laws.

2. The cooperative bank and customers shall continue to implement contracts and transactions signed between the Central People’s Credit Fund and customers which remain valid till the agreed expiry date.  Amending, supplementing and terminating contracts and transactions shall be carried out by mutual agreement and conform to provisions of the Law on Credit Institutions and relevant laws.  

Article 49. Entry into force

This Circular comes into force from January 01, 2013.

Article 50. Implementation organization

The Chief of Office, Head of the Banking Supervision Agency, Heads of affiliates of the SBV, Directors of the SBV’s branches of centrally-affiliated cities and provinces, Chairperson and members of the Management Board, Head and members of the Control Board, General Director of the cooperative bank, and other persons or entities concerned, shall be responsible for implementing this Circular./.

Appendix 01

RÉSUMÉ

...

...

...

Color photo

 (size 4x6) with the adjoining stamp of the authority certifying résumé

  SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------

RÉSUMÉ

1. Personal particulars:

- Full name on the birth certificate:

- Usual full name:

- Alias name:

...

...

...

- Place of birth:

- Nationality:

+ Original nationality:

+ Current nationality:

- Permanent residence in the household registry:

- Residence in the ID card (or passport):

- Current residence:

- Number of ID card, passport or other legal identity documents, issue date and place:

- Name and address of the legal entity; amount and proportion of contributed capital (applicable to the legal entity’s representative of contributed capital):  

...

...

...

Name of the educational institution, name of the city or country where that institution is based, name of training course, training period, full name of the degree (describe in detail degrees or educational programs pertaining to qualification standards and requirements for posts to which the applicant is elected and appointed).

3. Work summary:

- Past performance, professions and posts (from 18 years of age till now): what?, where?, and summary of main points.

- Posts undertaken in other organizations.

- Posts to be taken over in the cooperative bank.

- Rewards or disciplinary actions (where applicable).

4. Relationship:

- Fully describe family relationships, including fathers, mothers, spouses, sons or daughters, brothers or sisters (specify full name, age, residence and workplace);

- Number of the business registration certificate of the legal entity; full name, birth date and number of the ID card or passport of the legal representative of that legal entity.

...

...

...

- I undertake not to violate regulations of laws, the State Bank and the cooperative bank's Charter.

- I hereby undertake that the abovementioned information is true. I bear full responsibility for any information misrepresented herein.

6. Signature and full name of the declarant

7. Attached herein is the certification of the People’s Committee of the administrative division where the declarant registers permanent residence, or of the host body for which the declarant is working.

(In addition to basic information mentioned above, the declarant can provide others whenever necessary).

Appendix 02

DECLARATION OF RELATIVES OR ASSOCIATES

(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

...

...

...

DECLARATION OF DETAILS OF RELATIVES OR ASSOCIATES

No.

Declarant (organizational, individual entity) and associate persons

ID card number and issue date

Relationship with the declarant

Amount of capital contributed or shares held at credit institutions

Amount of capital contributed to the cooperative bank upon its incorporation

Name of credit institution

Proportion of capital contributed or shares held to the charter capital of credit institution

...

...

...

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1

Nguyen Van A

...

...

...

Declarant

2

Nguyen Thi B

Declarant’s wife

...

...

...

3

Company X

The company of which Mr. A is the Chairperson of the Management Board or Director, etc.

...

...

...

...

Total

...

...

...

% (held by specific credit institutions)

I hereby undertake that details provided in the abovementioned declaration are true. If there is any misrepresented information, I fully take legal responsibility.

[place & date]
Declarant (8)
(Signature, specify full name and seal)

INSTRUCTIONS

1. At the column (2), describe all of relatives or associates concerned as referred to in Clause 28 Article 4 of the Law on Credit Institutions.

2. At the column (4), specify relationship with the declarant.

...

...

...

4. At the section (8), if the declarant is a legal entity, the representative of that legal entity can sign his/her name.

 Appendix 03

APPLICATION FOR THE LICENSE

(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

  SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------

………., day………month………year........

APPLICATION FOR THE LICENSE

THE COOPERATIVE BANK

...

...

...

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Circular No......../2012/TT-NHNN dated ..../.../2012 of the Governor of the State Bank of Vietnam on the cooperative bank;

Pursuant to the minutes of the General Members’ Meeting held on ……….with respect to............;

Pursuant to the minutes of the meeting of the Management Board held on……..on appointment of the General Director of the cooperative bank;

The Management Board………. hereby acts on behalf of members to petition the Governor of the State Bank of Vietnam to:

I/ Grant the license to the cooperative bank with the following details:

1. Name of the cooperative bank:

- Full name written in Vietnamese;

...

...

...

- Full name written in English (if any);

- Abbreviated name written in English (if any);

- Transaction name (if any).

2. Location of head office, telephone and fax number:

3. Operational territories:

4. Contents and scope of operations:

5. Operational duration:

6. Charter capital:

II/ Register the cooperative bank’s Charter

...

...

...

ON BEHALF OF  THE MANAGEMENT BOARD
CHAIRPERSON

Appendix 04

Method for determining financial capacity of a legal entity which is not a credit institution

(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

1. General formula:

2. Detailed formula:

...

...

...

Where:

+ A: Financial capacity eligible for capital participation in the cooperative bank

+ E: Owner’s equity

+ LI: Difference between long-term investments and long-term liabilities

+ LA: Long-term asset

+ LD: Long-term liabilities

3. Conclusions:

* If A >= the agreed amount of capital contributed to the cooperative bank, the legal entity shall be judged to have sound and sufficient financial capacity to contribute capital to the cooperative bank.

* If A< the agreed amount of capital contributed to the cooperative bank, the legal entity shall be judged to have unsound and insufficient financial capacity to contribute capital to the cooperative bank.

...

...

...

Appendix 05

Sample license

(Issued together with the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank)

STATE BANK OF VIETNAM
--------

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------

No.   /GP-NHNN

Hanoi, on ... ... ... ...[date]

LICENSE

...

...

...

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Government's Decree No. 96/2008/ND-CP dated August 26, 2008 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to The Circular No...../2012/TT-NHNN dated .....2012 of the Governor of the State Bank of Vietnam on the cooperative bank;

After considering the application for the license filed by the Chairperson of the Management Board and attached documents;

Upon the request of the Head of Banking Supervision Agency,

HEREBY DECIDES:

Article 1. Agree to grant the license to establish the cooperative bank with the following details:

...

...

...

- Full name written in Vietnamese;

- Abbreviated name written in Vietnamese;

- Full name written in English (if any):

- Abbreviated name written in English (if any):

- Transaction name (if any):

2. Location of head office:

Article 2. Contents and scope of operations:

Operations...... (list activities or operations which have been proposed and approved in accordance with provisions of the Law on Credit Institutions and this Circular);

Article 3. Operational territories:

...

...

...

Article 5. The operational duration of the cooperative bank is … years.

Article 6. In the course of its operations, the cooperative bank must comply with Vietnamese laws.

Article 7. This license is valid from the signature date.

Article 8. The license shall be made into 05 (five) original copies: 01 (one) copy issued to the cooperative bank; 01 (one) copy used for business registration purpose; 03 (three) remaining copies deposited with the State Bank of Vietnam (including 01 copy deposited at the office of the State Bank of Vietnam; 01 copy deposited at the State Bank branch of the city or province where the cooperative bank's proposed head office is located; 01 copy archived in the file of licenses granted to cooperative bank).  

THE GOVERNOR

AUTHENTICATION OF CONSOLIDATED DOCUMENT

PP. THE GOVERNOR
DEPUTY GOVERNOR




Dao Minh Tu

...

...

...

[1] The Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam on the cooperative bank has the following bases for its enactment:

“Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law of Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

Pursuant to the Law on Enterprises No. 60/2005/QH11 dated November 29, 2005;

Pursuant to the Law on Cooperatives No. 18/2003/QH11 dated November 26, 2003;

Pursuant to the Government’s Decree No. 156/2013/ND-CP dated November 11, 2013 defining functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the request of the Head of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby introduces the Circular amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the State Bank’s Governor on the cooperative bank.”

...

...

...

“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 on amendments to the Law on Credit Institutions dated November 20, 2017;

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

At the request of the Head of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby introduces a Circular prescribing application and procedures for approval for changes and lists of personnel to be elected and appointed of credit institutions that are cooperatives”

[3] The Circular No. 17/2018/TT-NHNN amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches has the following bases for its enactment:

“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 on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the Functions, Tasks, Powers and Organizational Structure of the State Bank of Vietnam;

...

...

...

The Governor of the State Bank of Vietnam hereby introduces a Circular amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches.”

[4] The Circular No. 21/2019/TT-NHNN amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds has the following bases for its enactment:

“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 on amendments to the Law on Credit Institutions dated November 20, 2017;

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

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the Functions, Tasks, Powers and Organizational Structure of the State Bank of Vietnam;

At the request of the Head of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby introduces a Circular amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds.”

[5] This Clause is abrogated according to Article 5 of the Circular No. 17/2018/TT-NHNN amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches, and entering into force from October 01, 2018.

...

...

...

[7] This Clause is abrogated according to Article 5 of the Circular No. 17/2018/TT-NHNN amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches, and entering into force from October 01, 2018.

[8] This Clause is amended according to Clause 1 Article 1 of the Circular No. 21/2019/TT-NHNN amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds, and entering into force from January 01, 2020.

[9] This Article is amended according to Clause 1 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing cooperative bank, and entering into force from August 15, 2016.

[10] This Article is amended according to Clause 2 Article 1 of the Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds, and entering into force from January 01, 2020.

[11] This Article is amended according to Clause 3 Article 1 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and entering into force from August 15, 2016.

[12] This Article is amended according to Clause 3 Article 1 of the Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds, and entering into force from January 01, 2020.

[13] This Article is amended according to Clause 4 Article 1 of the Circular No. 21/2019/TT-NHNN dated November 14, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds, and entering into force from January 01, 2020.

[14] Article 2 of the Circular No. 09/2016/TT-NHNN amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN of the Governor of the State Bank of Vietnam dated November 26, 2012 governing the cooperative bank, and entering into force from August 15, 2016, stipulates as follows:

“Article 2. Entry into force

...

...

...

2. The Chief of Office, Head of the Banking Supervision Agency, Heads of affiliates of the State Bank, Directors of State Bank branches of centrally-affiliated cities and provinces, Chairperson of the Management Board, and General Director of the cooperative bank, shall be responsible for implementing this Circular.”

[15] Article 17, Article 18 and Article 19 of the Circular No. 05/2018/TT-NHNN prescribing application and procedures for approval for changes and lists of personnel to be elected and appointed of credit institutions that are cooperatives, and entering into force from June 01, 2018, stipulate as follows:

“Article 17. Transitional provisions

Applications for approval for changes or the contents mentioned in Clause 1 Article 1 of this Article or the list of recommended persons as prescribed in Clause 2 Article 1 of this Circular, which are submitted by the credit institutions that are cooperatives before the date of entry into force of this Circular shall be processed in accordance with applicable laws and regulations if they are adequate, valid and conformable with laws applicable at the date of submission, or modified and processed according to this Circular.

Article 18. Entry into force

1. This Circular comes into force from June 01, 2018.

2. From the effective date of this Circular, the following regulations shall be no longer legally valid: 

a) Decision No. 05/2007/QD-NHNN dated January 30, 2007 of the Governor of the State Bank of Vietnam prescribing procedures for changes in people’s credit funds, which require approval from the State Bank;

b) Decision No. 35/2008/QD-NHNN dated December 16, 2008 of the Governor of the State Bank of Vietnam amending and supplementing certain Articles of regulations on procedures for changes in people’s credit funds, which require approval from the State Bank, enclosed with the Decision No. 05/2007/QD-NHNN dated January 30, 2007 of the Governor of the State Bank of Vietnam;

...

...

...

d) Clause 4 Article 25 of the 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 19. Implementation organization

The Chief of the Office, the Head of the Banking Supervision Agency, heads of relevant entities affiliated to the SBV, Directors of the SBV’s branches in provinces or central-affiliated cities, Chairpersons and members of the Board of Members, heads and members of Control Boards and General Directors (Directors) of credit institutions that are cooperatives shall implement this Circular./.”

[16] Article 7 and Article 8 of the Circular No. 17/2018/TT-NHNN amending and supplementing certain articles of Circulars prescribing licensing, business network and foreign exchange operations of credit institutions and foreign bank branches, and entering into force from October 01, 2018, stipulate as follows:

“Article 7. Responsibility for implementation 

The Chief of the Office, Director of Legal Department, heads of relevant entities affiliated to the SBV, Directors of the SBV’s branches in provinces or central-affiliated cities, Chairpersons of the Management Board, Chairperson of the Board of Members, and General Directors (Directors) of credit institutions and foreign bank branches shall implement this Circular.

Article 8. Implementation

This Circular comes into force as from October 01, 2018./.”

[17] Article 7 and Article 8 of the Circular No. 21/2019/TT-NHNN amending and supplementing certain articles of Circulars on cooperative bank, people’s credit funds and fund for maintenance of prudence of the system of people's credit funds, and entering into force from January 01, 2020, stipulate as follows:

...

...

...

The Chief of the Office, the Head of the Banking Supervision Agency, heads of relevant entities affiliated to the SBV, Directors of the SBV’s branches in provinces or central-affiliated cities, Chairperson of the Management Board, General Director of Cooperative Bank of Vietnam, Chairpersons of the Management Boards, and Directors of people’s credit funds shall implement this Circular.

Article 8. Implementation

1. This Circular comes into force from January 01, 2020.

2. This Circular shall nullify:

a) Article 1 and Clause 3, 4, 6, 7, 8, 9 Article 2 of the Circular No. 06/2017/TT-NHNN dated July 05, 2017 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 03/2014/TT-NHNN dated January 23, 2014 of the Governor of the State Bank of Vietnam on maintenance of prudence of the system of people’s credit funds and the Circular No. 04/2015/TT-NHNN dated March 31, 2015 of the Governor of the State Bank of Vietnam on people’s credit funds;

b) Clause 2 and 4 Article 1 of the Circular No. 09/2016/TT-NHNN dated June 17, 2016 of the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam on the cooperative bank./."