THE PRIME MINISTER
Decision No. 48/2013/QD-TTg of August 1, 2013, on compulsory contribution of capital to or purchase of shares from credit institutions under special control
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to June 14, 2005 Civil Code No. 33/2005/QH11;
Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;
Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;
At the proposal of the Governor of the State Bank of Vietnam,
The Prime Minister promulgates the Decision on compulsory contribution of capital to or purchase of shares from credit institutions under special control.
Article 1. Scope of regulation
This Decision provides the contribution of capital to or purchase of shares from credit institutions under special control by the State Bank of Vietnam or other credit institutions designated by the State Bank of Vietnam.
Article 2. Subjects of application
1. The State Bank of Vietnam (below referred to as the State Bank).
2. Designated credit institutions.
3. Credit institutions under special control, except credit institutions with 100% charter capital owned by the State.
4. Credit institutions requested to participate in management and administration.
5. Other organizations and individuals involved in compulsory contribution of capital to or purchase of shares from credit institutions under special control.
Article 3. Interpretation of terms
1. Compulsory capital contribution or share purchase means contribution of capital to or purchase of shares from a credit institution under special control by the State Bank or another credit institution designated by the State Bank.
2. Designated credit institution means a credit institution designated by the State Bank to compulsorily contribute capital to or purchase shares from a credit institution under special control.
3. Credit institution having capital contributed or shares purchased means a credit institution under special control that has capital contributed or shares purchased compulsorily by the State Bank or a designated credit institution.
4. Credit institution requested to participate in management and administration means a credit institution requested by the State Bank to participate in managing and administering a credit institution having capital contributed or shares purchased compulsorily.
5. Special control means the placement of a credit institution under the State Bank’s direct control because this credit institution is at risk of insolvency due to weak management and administration.
Article 4. Competence to decide on compulsory capital contribution or share purchase
1. The State Bank Governor may designate credit institutions to contribute capital or purchase shares or may directly do so if other credit institutions fail to satisfy the conditions specified in Clause 1, Article 7 of this Decision.
2. A credit institution under special control may have its capital contributed or shares purchased compulsorily if it fails to satisfy the conditions specified in Clause 2, Article 149 of the Law on Credit Institutions or when the State Bank identifies that the credit institution’s accumulated loss exceeds the actual value of its charter capital and reserve funds as demonstrated in the latest audited financial statement and that the credit institution’s operation termination is likely to make the system of credit institutions unsafe as prescribed in Clause 3, Article 149 of the Law on Credit Institutions.
