Tiếng Việt- 1 Decree of Government No.86/2002/ND-CP of prescribing the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies
- 2 Law No. 10/2003/QH11 of June 17, 2003, amending and supplementing a number of articles of the Vietnam State Bank Law
- 3 Law No. 06/1997/QH10 of December 12, 1997 on The State Bank of Vietnam
- 4 Law No. 07/1997/QH10 of December 12, 1997 on credit institutions
- 5 Decree No. 13/1999/ND-CP of March 17, 1999, on organization and operation of foreign credit institutions and their representative offices in Vietnam
| THE STATE BANK OF VIETNAM | SOCIALIST REPUBLIC OF VIETNAM |
| No.1090/2003/QD-NHNN | Hanoi, September 17, 2003 |
THE STATE BANK GOVERNOR
Pursuant to December 12, 1997 State Bank Law No. 01/1997/QH10 and June 17, 2003 Law No. 10/2003/QH11 Amending and Supplementing a Number of Articles of the Vietnam State Bank Law;
Pursuant to Credit Institution Law No. 02/1997/QH10 dated December 12, 1997;
Pursuant to the Government's Decree No. 86/2002/ND-CP dated November 5, 2002 defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies;
Pursuant to the Government's Decree No. 13/1999/ND-CP dated March 17, 1999 on organization and operation of foreign credit institutions and/or representative offices of foreign credit institutions in Vietnam;
At the proposal of the director of the Department on Banks and Non-Bank Credit Institutions,
DECIDES:
Article 2. This Decision takes effect 15 days after its publication in the Official Gazette.
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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Tran Minh Tuan
ON OPENING AND TERMINATING THE OPERATION OF TRANSACTION OFFICES, BRANCHES AND/OR TRANSACTION BUREAUS OF JOINT-VENTURE BANKS IN VIETNAM
(Promulgated together with the State Bank Governor's Decision No. 1090/2003/QD-NHNN dated September 17, 2003)
Article 2. In this Regulation, the terms and phrases below shall be construed as follows:
1. A joint-venture bank is a bank set up with capital contributed by the Vietnamese party (comprising one or many Vietnamese banks) and the foreign party (comprising one or many foreign banks) on the basis of a joint-venture contract. Joint-venture banks are the Vietnamese legal persons, which are headquartered in Vietnam, operate according to their establishment and operation licenses and the relevant law provisions of Vietnam.
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3. Branches of joint-venture banks are independent units, having their seals and having tasks to partly carry out activities of the joint-venture banks under the joint-venture banks' authorization.
4. Transaction bureaus constitute parts of the organizational structure of the transaction offices, branches of joint-venture banks, having their own seals, operating mainly to mobilize capital and provide loans in the geographical areas and perform a number of other banking operations under the authorization of transaction offices, branches.
OPENING TRANSACTION OFFICES, BRANCHES
Article 4. The joint-venture banks are entitled:
a) To open transaction offices in provinces or cities where they are headquartered;
b) To open branches in provinces and centrally-run cities, including where they are headquartered.
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2. Having the minimum charter capital being equal to the legal capital as provided for by the Government.
3. Having conducted business operations with profits in the latest two years. The rate of outstanding debts at the end of the preceding quarter is below 5%.
4. The administrative and executive apparatus and the internal inspection system operate with efficiency.
5. The information system satisfies the managerial requirements.
6. Not violating regulations on ensuring safety in banking operations:
a) Cases where loans must not be provided;
b) Credit restriction;
c) Lending, guarantee limits;
d) Capital contribution, share purchase limits;
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f) Risk reserve.
7. Not violating other provisions of law.
1. The document of the Managing Board chairman or the authorized person addressed to the State Bank Governor, requesting the approval of the opening of the transaction office or branch of the joint-venture bank (in case of authorization, there must be the written authorization of the Managing Board chairman), which states briefly: the necessity to have banking operations in the locality; the appellation; the locality where the transaction office or branch is expected to be opened; the operation contents and scope; and at the same time committing to satisfy all the prescribed conditions to open the transaction office or branch.
2. The resolution of the Managing Board on the opening of transaction office, branch.
3. The scheme on opening the transaction office, branch, which should contain the following contents: the necessity to have banking operations in the locality; study of the local market; the projected organizational apparatus; the operation contents and scope; the plan on operation in the first three years.
4. The originals (or notarized copies) of the financial statement of the joint-venture bank, the auditing report of the independent auditing organization in the latest two years, the report on achieving the safety rates of the joint-venture bank at the end of the latest quarter.
5. The written document of the provincial/municipal People's Committee of the locality where the joint-venture bank plans to open its transaction office or branch, permitting the joint-venture bank to locate its headquarter.
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2. Within 7 working days after fully receiving the documents mentioned in Clause 1 of this Article, the State Bank's provincial/municipal branches shall give their opinions in writing on the necessity of banking operations in the localities and send one copy to the joint-venture banks and one copy to the State Bank (the Department on Banks and Non-Bank Credit Institutions).
3. After receiving the documents of the State Bank's provincial/municipal branches, the joint-venture banks shall send dossiers of application for opening transaction offices and/or branches, as defined in Article 6 of this Regulation, to the State Bank (the Department on Banks and Non-Bank Credit Institutions).
4. Within 15 working days as from the date of receiving the complete and valid dossiers of the joint-venture banks, the State Bank shall consider and give its written approval or disapproval of the opening of transaction offices and/or branches of the joint-venture banks; in case of disapproval, the reasons therefore must be clearly stated.
2. Before their transaction offices or branches start operation, the joint-venture banks must make business registration and publish such on central and local newspapers as provided for by law; notify the State Bank's provincial/municipal branches of the offices and time to commence the operation of transaction offices, branches; send to the State Bank (the Department on Banks and Non-Bank Credit Institution) documents certifying the lawful use of the offices of the transaction offices or branches, the (notarized) copies of the business registration papers, the issues of newspapers which carry the announcement on opening of transaction offices, branches.
3. Upon the expiry of the inaugural time limit (including the extended duration), if the transaction offices and/or branches of the joint-venture banks still fail to commence their operation, the written approval of the opening of the transaction offices or branches shall be invalid.
4. The operation duration of transaction offices, branches shall be equal to the remaining operation duration of the joint-venture banks.
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2. The State Bank Inspectorate shall coordinate with the inspectorates of the State Bank's provincial/municipal branches in conducting regular and irregular inspection and examination of the organization and operation of transaction offices and branches of the joint-venture banks, handle violations of banking operation under the provisions of law.
TERMINATION OF OPERATION OF TRANSACTION OFFICES, BRANCHES
1. Automatic termination of operation.
The transaction offices and branches of joint-venture banks shall automatically terminate their operations when the joint-venture banks terminate their operation.
2. The voluntary termination of operation.
3. The compulsory termination of operation.
Section I. VOLUNTARY TERMINATION OF OPERATION
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2. A dossier of requesting the State Bank to approve the termination of operation of a transaction office or branch shall include:
a) The document of the Managing Board chairman or the authorized person on the termination of operation of the transaction office or branch (in case of authorization, there must be the written authorization of the Managing Board chairman) clearly stating the reasons for termination, the name and address of the transaction office or branch which shall terminate their operation, the estimated time of operation termination.
b) The Managing Board's resolution on termination of operation of the transaction office or branch.
c) The handling plan upon the termination of operation of the transaction office or branch, clearly stating the real situation of organization and operation of the transaction office or branch; the order and procedures for properly liquidation, the plan on recovery of assets and payment of debts; the plan on settlement of the laborers' interests and other matters related to the responsibilities of the transaction office or branch upon the termination of its operation.
1. The joint-venture banks shall send documents of the Managing Board chairman and handling plans upon the termination of operation of their transaction offices or branches as mentioned at Items a, c, Clause 2, Article 11 of this Regulation to the State Bank branches in the provinces or cities where the transaction offices or branches which are to terminate their operation are based.
2. Within 7 working days after fully receiving the documents mentioned in Clause 1 of this Article, the State Bank's provincial/municipal branches shall give their written opinions on the situation of operation of the transaction offices or branches in the localities, sending one copy to the joint-venture banks and one copy to the State Bank (the Department on Banks and Non-Bank Credit Institutions).
3. After receiving the documents of the State Bank's provincial/municipal branches, the joint-venture banks shall send the dossiers of application for termination of operation of transaction offices or branches as provided for in Clause 2, Article 11 of this Regulation to the State Bank (the Department on Banks and Non-Bank Credit Institutions).
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5. The written approval of termination of operation of transaction offices or branches of joint-venture banks shall be addressed to the State Bank branches and People's Committees of the provinces or cities where the transaction offices or branches which are to terminate their operation are based; the business registration offices, be publicly posted up at the head-offices of the joint-venture banks and offices of the transaction offices or branches which are going to terminate their operation; be published on central and local newspapers according to law provisions.
Section II. COMPULSORY TERMINATION OF OPERATION
2. The written request for termination of operation of transaction offices and/or branches of joint-venture banks shall be sent to the State Bank branches and the People's Committees of the provinces or cities where the transaction offices or branches which are to terminate their operation are based; the business registration offices, be publicly posted up at the head-offices of the joint-venture banks and the offices of the transaction offices or branches which are to terminate their operation; published on central and local papers under the provisions of law.
3. Within 30 working days after receiving the written requests for termination of operation, the joint-venture banks must immediately stop all operations of the transaction offices and/or branches; return business registration papers to the business registration offices as prescribed; hand over the seals to the police offices which have granted the certificates of seal specimen registration.
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OPENING AND TERMINATING THE OPERATION OF, TRANSACTION BUREAUS OF TRANSACTION OFFICES, BRANCHES
2. Before the transaction bureaus commence their operation, the joint-venture banks must notify the time of operation commencement to the State Bank branches in the provinces or cities where the transaction bureaus shall be opened.
3. Quarterly, the joint-venture banks shall report to the State Bank branches in the provinces or cities where the transaction bureaus are opened on the number of transaction bureaus in the localities.
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FOR THE STATE BANK GOVERNOR
Tran Minh Tuan
- 1 Decree of Government No.86/2002/ND-CP of prescribing the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies
- 2 Decision No. 424/1999/QD-NHNN5 of November 30, 1999, on the amendment of the scope of operations of joint-venture banks in Vietnam.
- 3 Decree No. 13/1999/ND-CP of March 17, 1999, on organization and operation of foreign credit institutions and their representative offices in Vietnam
- 4 Decision No. 415/1998/QD-NH5 of December 08, 1998, on amendment of the scope of operations of joint-venture bank in Vietnam.
- 5 Law No. 06/1997/QH10 of December 12, 1997 on The State Bank of Vietnam
- 6 Law No. 07/1997/QH10 of December 12, 1997 on credit institutions