Legal basis

• Clause 1, Clause 2, Article 20 of the Law on Credit Institutions 2010;
• Decree No. 39/2014/ND-CP
• Decree No. 10/2011/ND-CP
• Articles 4, 20, 21 of the Law on Credit Institutions;
• Decree No. 10/2011/ND-CP;
• Article 110 of the Law on Credit Institutions
• Clause 7 Article 112 of Law on Credit Institutions No. 47/2010/QH12
• Article 108 Law on Credit Institutions No. 47/2010/QH12;
• Articles 11, 12, 13, 15 Decree No. 39/2014/ND-CP.

Content
General conditions:

1. The banking activities of a financial company must be recorded in the establishment and operation license issued by the State Bank (hereinafter referred to as the License for short).

2. Having a team of qualified staff, professional capacity, material foundations, technology, means, equipment and internal regulations as prescribed by law to carry out banking activities as stated in the Certificate of Incorporation

3. For banking activities related to foreign exchange activities, financial companies must comply with the provisions of the law on foreign exchange management.

4. Fully satisfy the professional conditions for banking activities prescribed by the State Bank.

5. Having charter capital, the minimum allocated capital is 500 billion VND

A credit institution may be granted a License when it fully meets the following conditions:

a) Having charter capital, the allocated capital is at least equal to the legal capital;

b) The owner of the credit institution is a one-member limited liability company, the founding shareholders and founding members are legal entities that are operating legally and have sufficient financial capacity to contribute capital. ; founding shareholders or founding members are individuals with full civil act capacity and sufficient financial capacity to contribute capital

Conditions for the owner of a credit institution being a one-member limited liability company, founding shareholders or founding members shall be prescribed by the State Bank;

c) The manager, executive officer, member of the Control Board fully meets the criteria and conditions prescribed in Article 50 of this Law;

d) Having a Charter consistent with this Law and other relevant laws;

dd) Having a feasible establishment plan and business plan that does not affect the safety and stability of the credit institution system; does not create a monopoly or restrict competition or unfair competition in the credit institution system.

A joint-venture credit institution or a 100% foreign-owned credit institution may be granted a License when fully meeting the following conditions:

a) Conditions on licensing for credit institutions:

a1) Having charter capital, the capital allocated at least equal to the legal capital;

a2) The owner of the credit institution is a one-member limited liability company, the founding shareholders and founding members are legal entities that are operating legally and have sufficient financial capacity to contribute capital. ; founding shareholders or founding members are individuals with full civil act capacity and sufficient financial capacity to contribute capital.

Conditions for the owner of a credit institution being a one-member limited liability company, founding shareholders or founding members shall be prescribed by the State Bank;

a3) Managers, executives and members of the Control Board fully meet the criteria and conditions prescribed in Article 50 of this Law;

a4) Having a Charter consistent with this Law and other relevant laws;

a5) Having a feasible establishment plan and business plan that does not affect the safety and stability of the credit institution system; does not create a monopoly or restrict competition or unfair competition in the credit institution system.

b) The foreign credit institution is permitted to conduct banking activities in accordance with the law of the country where the foreign credit institution’s head office is located;

c) The activity expected to be performed in Vietnam must be the activity that the foreign credit institution is currently permitted to conduct in the country where the foreign credit institution’s head office is located;

d) The foreign credit institution must have healthy operations, satisfy the conditions on total assets, financial situation, and safety ratios as prescribed by the State Bank;

dd) The foreign credit institution must make a written commitment to provide financial, technological, administrative, operating and operational support to the joint-venture credit institution or the 100% foreign-owned credit institution; ensure that these organizations maintain the actual value of their charter capital not less than the legal capital level and comply with the provisions on safety assurance of this Law;

e) The foreign competent authority has signed an agreement with the State Bank on inspection and supervision of banking activities, exchange of information on banking safety supervision and has made a written commitment to supervise the banking activities. accordance with international practices for operations of foreign credit institutions.

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nguyen Duc Trong via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: info@hongbanglawfirm.com hoặc lienheluathongbang@gmail.com

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