THE STATE BANK
 -------
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
No.24/2007/QD-NHNN
Hanoi, June 07, 2007
 
DECISION
PROMULGATING THE REGULATION ON THE GRANT OF LICENSES FOR THE ESTABLISHMENT AND OPERATION OF JOINT-STOCK COMMERCIAL BANKS
THE STATE BANK GOVERNOR
Pursuant to the 1997 Law on the State Bank of Vietnam and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the 1997 Law on Credit Institutions and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the 2005 Law on Negotiable Instruments;
Pursuant to the Government’s Decree No. 52/2003/ND-CP dated May 19, 2003, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Scheme on criteria for the establishment of banks in Vietnam, which was approved by the Government in Official Letter No. 6408/VPCP-KTTH dated November 3, 2006;
At the proposal of the director of the Department for Banks and Non-bank Credit Institutions,
DECIDES:
Article 1.
To promulgate together with this Decision the Regulation on the grant of licenses for the establishment and operation of joint-stock commercial banks.
Article 2.
This Decision takes effect 15 days after its publication in CONG BAO.
Article 3.
The directors of the Office and the Department for Banks and Non-bank Credit Institutions, heads of concerned units under the State Bank of Vietnam, directors of the State Bank’s provincial/municipal branches, chairmen and members of Managing Boards, heads and members of Control Commissions and general directors of joint-stock commercial banks, and concerned organizations and individuals shall implement this Decision.
 

 

 
STATE BANK GOVERNOR




Le Duc Thuy
 
REGULATION
ON THE GRANT OF LICENSES FOR THE ESTABLISHMENT AND OPERATION OF JOINT-STOCK COMMERCIAL BANKS
(Promulgated together with the State Bank Governor’s Decision No. 24/2007/QD-NHNN dated June 7, 2007)
Chapter I
GENERAL PROVISIONS
Article 1. Governing scope
This regulation provides for the grant of licenses for the establishment and operation (referred to as licenses for short) of joint-stock commercial banks (referred to as banks for short).
Article 2. Subjects of application
1. Banks defined in Article 1 of this Regulation.
2. Organizations and individuals related to the grant of licenses.
Article 3. Competence to grant licenses
The Governor of the State Bank of Vietnam shall decide on the grant of licenses according to this Regulation, relevant provisions of law and the development strategy of the banking industry, ensuring safety for Vietnam's banking system.
Article 4. Interpretation of terms
In this Regulation, the terms below are construed as follows:
1.Bank establishment-preparation board (referred to as preparation board for short) is an organization whose members are elected by founding shareholders to represent them in performing jobs related to the application for a license. The preparation board has at least 5 members, including its head.
2. First meeting of shareholders meansa meeting of founding shareholders and other shareholders who contribute capital for the establishment of a bank, which has the task of approving the bank's organization and operation charter and establishment scheme, electing the Managing Board and the Control Commission of the first term, and deciding on other issues related to the establishment of the bank.
3. Shareholder means an organization or individual owning at least one share issued by a bank.
4. Founding shareholder means a shareholder participating in the elaboration, approval and signing of the first organization and operation charter of a bank.
5. Preferred voting share means a share with more votes compared to a common share. The number of votes represented by a preferred voting share is specified in the charter of a bank.
6. Executives of a bank include the general director, deputy general directors and other executive posts defined in the bank's charter.
7. Managers of a bank include the chairman and vice chairmen of the Managing Board, the general director and other managing posts defined in the bank's charter.
8. Independent member of the Managing Board means a Managing Board member who meet the following requirements:
a) Not enjoying wages or allowances of the bank beside the amounts he/she is entitled to as a member of the Managing Board;
b) His/her spouse, father, adoptive father, mother, adoptive mother, child, adoptive child or sibling does not own 5% or more of voting stocks of a bank, or is not a manager or a member of the Control Commission of a bank or a to be-set up dependent a company of a bank;
c) Not directly owning or representing the ownership of 1% or more of voting stocks of a bank; not owning jointly with related persons defined in Clause 9 of this Article 5% or more of voting stocks of a bank.
9. Related persons means organizations and individuals having a relation with another organization or individual in one of the following cases:
a) A parent company and its subsidiary company or vice versa; a bank and its dependent company or vice versa; companies of the same parent company; dependent companies of the same bank;
b) A company and its manager, or member of its Control Commission or persons or organizations competent to appoint these persons or vice versa;
c) A company and an individual owning 10% or more of its charter capital or vice versa;
d) Persons with close relationships such as wife and husband, parent or adoptive parent, children or adoptive children or siblings;
e) A company and persons who have close relationships (as defined at Point d of this Clause) with managers, members of the Control Commission, capital contributors or shareholders owning 10% or more of the charter capital of that company or vice versa;
f) Individuals authorized to represent persons defined at Points a, b, c, d and e of this Clause and the authorizers.
Click Download to see full text