Chương 2 Nghị định 28/2005/NĐ-CP: Cấp giấy phép thành lập và hoạt động cho các tổ chức tài chính quy mô nhỏ

Chapter II

GRANT OF ESTABLISHMENT AND OPERATION LICENSES FOR SMALL-SIZED CREDIT INSTITUTIONS

Article 8. Conditions for being granted licenses

1. Having demand for small-sized financial operations.

2. The provincial/municipal People's Committees agree with the necessity to establish. small-sized financial institutions in their respective localities.

3. Having sufficient charter capital as prescribed in Article 3 of this Decree.

4. Having working offices and material foundations suitable to the planned small-sized financial operations.

5. Having managers, controllers and executives as prescribed in Chapter III of this Decree.

6. Having feasible business plans.

7. With regard to small-sized financial institutions receiving voluntary savings, apart from the requirements mentioned in Clauses 1, 2, 3, 4, 5 and 6 of this Article, each must also meet the following conditions:

a) Having been granted a license by the State Bank;

b) Having received compulsory savings for the latest three years;

c) Its managerial, controlling and executive apparatuses operate fruitfully;

d) Having conducted healthy operations for the latest three years under regulations of the State Bank;

e) Its information system meets the management requirements;

f) Meeting the safety requirements in banking operations and other requirements prescribed by law.

Article 9. Dossiers of application for licenses

Dossiers of application to the State Bank for licenses shall each consist of:

1. The application for a license, clearly stating the contents of operation and expected operation area.

2.The written consent of the provincial/municipal People's Committee regarding the necessity to establish a small-sized financial institution in the locality.

3.The draft charter.

4. The small-sized financial institution's operation scheme, which clearly states economic efficiency and benefits.

5. The list, curricula vitae and diplomas evidencing capabilities and professional qualifications of members of the Managing Board, the Control Board and general director (director) of the small-sized financial institution.

6. Papers evidencing the charter capital amount; list and addresses of capital-contributing organizations and individuals and their capital portions in the charter capital; the financial situation and information related to the capital-contributing organizations and individuals.

7. Small-sized financial institutions that receive voluntary savings must also submit their audited reports of the latest three fiscal years.

Article 10. Licensing fee

Small-sized financial institutions licensed by the State Bank must pay a licensing fee under regulations of the Ministry of Trade.

Article 11. Licensing procedures and use of licenses

1. Within 60 days after receiving full and valid dossiers prescribed in Article 9 of this Decree, the State Bank shall consider the grant of licenses for small-sized financial institutions. In case of refusal, the State Bank must give written replies, clearly stating the reasons therefor.

2. Small-sized financial institutions' licenses granted by the State Bank shall specify the operation terms and areas as well as activities such institutions are allowed to conduct.

3. Licensed small-sized financial institutions must use the names and operate according to the provisions of their licenses. Licenses must not be forged, erased, transferred, leased or borrowed in any form.

Article 12. Operation inauguration

1. To inaugurate its operation, a licensed small-sized financial institution must fully meet the following conditions:

a) Its charter has been approved by the State Bank;

b) Having a business registration certificate and sufficient legal capital;

c) Its charter capital amount in cash must be deposited in a blocked account opened at the State Bank at least 30 days before the commencement of its operation. This capital amount shall be unblocked only after the concerned small-sized financial institution inaugurates its operation. This regulation shall not apply to small-sized financial institutions that have been operating before the effective date of this Decree;

d) Having a legal document(s) on its right to own or to use its head office;

e) Announcing on local newspapers according to law provisions the license's contents. This regulation shall not apply to small-sized financial institutions that are not allowed to receive voluntary savings.

2. At least 30 days before its inauguration, a small-sized financial institution must notify in writing the State Bank and the provincial/municipal People's Committee thereof.

3. Within 12 months after being licensed, if a small-sized financial institution fails to inaugurate operation, its license shall automatically be invalidated.

Article 13. Extension and withdrawal of licenses

1. Extension of licenses

a) A dossier of application by a small-sized financial institution for extension of its license must be submitted to the State Bank at least 2 months before the expiration of such license. The dossier consists of:

- The application for license extension;

- The report on operation of the small-sized financial institution in the latest three consecutive years.

b) Within 30 days after receiving full and valid dossiers of application for license extension from small-sized financial institutions, the State Bank shall consider and issue decisions permitting or refusing such extension. In case of refusal, the State Bank must reply in writing, clearly stating the reasons therefor.

2. A small-sized financial institution shall have its license withdrawn in the following cases:

a) There are evidences that its license application dossier contains untruthful information;

b) It fails to start operation after 12 months from the date of being licensed;

c) It voluntarily dissolves or is forced to dissolve by a competent State agency;

d) It is divided, split, merged, consolidated or bankrupt;

e) It receives voluntary savings without the State Bank's permission; or

f) It operates for purposes other than those stated in its charter.

Article 14. Consolidation, merger, division, split and dissolution

In cases where the consolidation, merger, division, split or dissolution of a small-sized financial institution is necessary, such institution must send an application and dossier therefor to the State Bank. Within 30 days after receiving full and valid dossiers, the State Bank shall give written reply to such institution. In case of disapproval, the written reply must clearly state the reasons therefor.

The dossiers and procedures for consolidation, merger, division, split or dissolution of small-sized financial institutions shall comply with the State Bank's guidance.

Article 15. Bankruptcy and liquidation

The process of bankruptcy and liquidation of small-sized financial institutions shall comply with the State Bank's guidance as well as the legislation on bankruptcy.