New rules: Mobilization funds or loan funds may not be used to inject capital into banks
Recently, the State Bank of Vietnam has issued new regulations on the transfer of capital contributions from commercial banks and joint ventures.
The National Bank has issued Circular No. 13/2023/TT-NHNN, which amends and supplements various provisions of Circular No. 40/2011/TT-NHNN to regulate the issuance of bank licenses and the organization and operation of banks. Branches, representative offices of foreign credit institutions and other foreign organizations conducting banking business in Vietnam.
Accordingly, Document No. 13/2023/TT-NHNN adds point b(iii) to point b in paragraph 3 of Article 31 regarding the transfer and repurchase of capital contributions of joint venture banks and 100% foreign-owned banks.
Specifically, when transferring capital to an organization that is not a joint venture bank member, it must ensure that it meets the prescribed capital contribution ratio and meet the following conditions:
New partners are businesses other than banks and must meet the following conditions:
– Established under Vietnamese law or foreign law;
– State-owned enterprises must obtain written approval from the competent authority that allows capital injection into joint venture banks in accordance with the law;
– Enterprises that obtain establishment and operating licenses in banking, securities, insurance and other fields must pay capital contributions in accordance with relevant legal provisions;
– Have a share capital of at least VND 1 trillion, Submit an application for approval to purchase, sell, and transfer capital contributions that account for more than 1% and less than 5% of the charter capital of the joint venture bank. The total assets in the three years before the application are at least VND 2 trillion or 1% of the capital contribution before submitting the purchase, sale, or transfer capital contribution Within the first three years of application approval, the minimum share capital is VND200 billion and the minimum total assets are VND400 billion. joint venture bank;
– For enterprises in business areas that require statutory capital, it is necessary to ensure that equity less statutory capital is at least equal to the amount of capital commitments committed based on audited financial statement data. The year when the audit unit was independently audited and the audit unit submitted an application for purchase, sale or capital transfer approval without exception in the previous year;
– Profitable business in the first 3 years of the year in which the application for purchase, sale and transfer of investment approval is submitted;
– Funds raised or borrowed from other organizations or individuals may not be used to contribute funds;
– Fulfill all tax and social security obligations as required by the time the application for approval of purchase, sale and transfer of investment is submitted;
– Not a founding shareholder, owner, founding member or strategic shareholder of other credit institutions established and operating in Vietnam.
This notice will be effective from December 14, 2023.
Banks are subject to special supervision. How can people feel safe when saving money? ))>