On December 31, 2015, the State Bank of Vietnam issued the Circular No. 36/2015/TT-NHNN on restructuring of credit institutions.
Accordingly, each credit institution may only convert its business type in accordance with business types prescribed in Article 6 of the Law on credit institutions and regulations of the State Bank. Protect confidentiality in order to ensure stable operation of credit institution before the project for conversion of business type is ratified by the competent bodies of credit institutions. All documents and materials on conversion of business type must be made in a prudent, truthful and accurate manner so as to avoid misunderstanding. It is strictly prohibited to disperse properties in any form. The transfer and sale of property during the process of conversion of business type must be conducted publicly and transparently, in accordance with regulations of law and agreement of contracting parties, ensure the safety of property and do not affect the interests of credit institutions and other organizations and individuals related to conversion of business type. The establishment and operation license of the converting credit institution shall become invalid when the converted credit institution launches its opening.
Besides, the Circular also details the cases of restructuring of credit institutions such as a commercial bank or a finance company or is merged into another commercial bank; a financial company is merged into another financial company; two commercial banks consolidate into another commercial bank; a commercial bank and a finance company consolidate into another commercial bank; a financial company and a financial company consolidate into another financial company. Upon the approval for acquisition, consolidation or conversion of business type issued by the State Bank, each post-restructuring credit institution must announce the following information by means of media of the State Bank, in a daily written newspaper nationwide in 3 consecutive issues or an online newspaper of Vietnam within 7 working days and at its headquarters, branches, offices and affiliated units such as number and date of issue of the approval for acquisition, consolidation or conversion of business type promulgated by the State Bank; number and date of issue of the establishment and operation license, certificate of enterprise registration or equivalent documents of the post-restructuring credit institution; name and headquarters address of the post-restructuring credit institution; charter capital of the post-restructuring credit institution; legal representative of the post-restructuring credit institution; business type of the post-restructuring credit institution; expected opening date..
This Circular takes effect on March 01, 2016.
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