Chapter II
ESTABLISHMENT OF BRANCHES, REPRESENTATIVE OFFICES AND ADMINISTRATIVE UNITS
Article 7. Requirements for branch establishment
1. A non-bank credit institution that has been operating for at least 12 months (counting from the date of inauguration to the application date) is allowed to establish not more than 03 branches in a fiscal year if it satisfies all of the following requirements:
a) Its chartered capital in December 31 of the year preceding the year of application shall not be lower than the legal capital;
b) It earns profits from business as stated in its audited consolidated and single financial statements of the year preceding the year of application. A non-bank credit institution that applies for establishment of a branch in the second years after its inauguration is not required to meet this requirement;
c) It is not prohibited by a competent authority from expanding its operations at the application date;
d) It does not infringe regulations on prudential ratios for operations of non-bank credit institutions at the application date;
dd) Its bad debt ratio at December 31 of the year preceding the year of application and at the application date shall not exceed 4% of its total outstanding debts or another ratio as decided by the SBV’s Governor in each period;
e) The number of members and structure of the Board of Directors, the Board of Members and the Boards of Controllers must comply with applicable laws at the application date; the General Director (or Director) position is not left vacant;
g) It does not commit any violations against regulations on internal control system, internal auditing, and classification of assets and risk provisions at the application date;
h) It has the Regulations on operating network management as regulated in Article 6 hereof;
i) The scheme for establishment of network members is available.
2. A non-bank credit institution that has been operating for less than 12 months (counting from the date of inauguration to the application date) is allowed to establish not more than 02 branches if it satisfies all of the following requirements:
a) Its chartered capital at the application date shall not be lower than the legal capital;
b) Its bad debt ratio on the date closed to the application date shall not exceed 4% of its total outstanding debts or another ratio as decided by the SBV’s Governor in each period;
c) The requirements set out in Points c, d, e, g, h, i Clause 1 of this Article.
Article 8. Requirements for establishment of representative offices and administrative units
1. A non-bank credit institution that has been operated for at least 12 months (counting from the date of inauguration to the application date) is required to satisfy the requirements specified in Points a, c, e, g, h, i Clause 1 Article 7 hereof.2. A non-bank credit institution that has been operated for less than 12 months (counting from the date of inauguration to the application date) is required to satisfy the requirements specified in Points c, e, g, h, i Clause 1 and Point a Clause 2 Article 7 hereof.
Article 9. Application for approval for establishment of a branch, representative office or administrative unit
An application shall include:
1. The application for the SBV’s approval for establishment of a branch/ representative office/ administrative unit made by the non-bank credit institution by using the form provided in the Appendix enclosed herewith.
2. The resolution on approval for the establishment of a branch/ representative office/ administrative unit made by the Board of Directors, or the Board of Members of the non-bank credit institution, or other documents of equivalent validity made by other authorities of the non-bank credit institution as regulated in its Charter.
3. The scheme for branch establishment, which includes, inter alia, the following contents:
a) Full name and abbreviated name in Vietnamese language, branch’s address and operations;
b) Reasons for establishing the branch and selected location of the branch;
c) Organizational structure: Organizational structure of the branch, expected holders of key positions (including Director, Deputy Director and heads of professional divisions);
dd) The feasibility study report which includes analysis of business environment, target market, business opportunities and plans for market domination;
dd) The business plan for the first three years, which includes, inter alia, the following contents: Planned balance sheet; income statement; grounds for formulating the business plan and explanations about the capacity to implement the business plan in each year.
4. The scheme for establishment of a representative office/ administrative unit, which includes, inter alia, the following contents:
a) Full name in Vietnamese language and in foreign language (if any); abbreviated name in Vietnamese language and foreign language (if any); address and operations;
b) Reasons and necessity of establishing the representative office/ administrative unit;
c) Expected holders of key positions (including Director, Deputy Director, heads of professional divisions, head of the representative office or administrative unit);
d) The operation plan for the first three years.
Article 10. Procedures for approval for establishment of a branch, representative office or administrative unit
1. Procedures for approval before the commencement of operations:
a) The non-bank credit institution shall prepare an application for the type of its network member unit to be established in accordance with Article 9 hereof, and submit it to the SBV (via the Bank Supervision and Inspection Agency). If the application is insufficient or invalid, within 07 business days from the receipt of the application, the Bank Supervision and Inspection Agency shall request the applicant in writing to modify the application;
b) The applicant is required to modify and complete the application within 30 business days from the date on which it receives the written request from the Bank Supervision and Inspection Agency. Over this time limit, the applicant must submit a new application as regulated herein to the SBV for consideration;
c) If the application for approval for establishment of a branch is submitted, within 05 business days from the receipt of a sufficient application, the Bank Supervision and Inspection Agency must ask for written opinions from the following entities:
(i) The SBV’s branch in the province or city where the non-bank credit institution’s headquarters is located (where the Bank Supervision and Inspection Office is not available) that shall give written opinions about the satisfaction of the non-bank credit institution of the requirements set forth in Article 7 hereof;
(ii) The SBV’s branch in the province or city where the non-bank credit institution’s branch is going to be established for opinions about the necessity of the branch in that province or city;
d) Within 10 business days from the receipt of the written request for opinions from the Bank Supervision and Inspection Agency, the entities mentioned in Point c of this Clause are required to provide written opinions about requested contents;
dd) Within 15 business days from the receipt of sufficient opinions from the entities mentioned in Point c of this Clause or from the receipt of the sufficient application for establishment of the representative office or administrative unit from the non-bank credit institution, the Bank Supervision and Inspection Agency shall request the SBV’s Governor to give approval or refuse to give approval for the establishment of branch, representative office or administrative unit of the non-bank credit institution;
e) Within 60 business days from the receipt of the sufficient application for approval for establishment of a branch or within 45 business days from the receipt of the sufficient application for approval for establishment of a representative office or administrative unit submitted by the non-bank credit institution, the SBV shall give a written approval or refusal to give approval to the non-bank credit institution. If an application is refused, reasons for refusal must be provided in writing;
g) Within 12 months from the date on which the SBV’s Governor gives a written approval for establishment, the non-bank credit institution must commence operations of the established branch, representative office or administrative unit. If the non-bank credit institution fails to commence operations of its branch, representative office or administrative unit within this time limit, the SBV’s written approval shall be implicitly invalid.
2. Commencement of operations of a branch:
a) Requirements for commencement of operations of a branch:
(i) It has the legitimate right to own or use the branch office; the branch office must be adequate for storage of documents, convenient and safe for transactions, ensure safety of assets, be equipped with suitable security system, electrical system and communication system so as to maintain uninterrupted operations of the branch and meet fire requirements;
(ii) The branch office must have a bank vault or safe as regulated by the SBV;
(iii) The branch must have an information technology system maintaining the online connection between the branch and the headquarters; the branch’s information technology system and database must be operated continuously and safely for keeping confidentiality of the branch's operations and serving statistics and reporting tasks;
(iv) The branch must employ adequate and qualified persons holding key positions of the branch, including Director and Deputy Director, and professional staff;
(v) The branch’s Director must meet relevant standards and requirements set forth in Clause 5 Article 50 of the Law on credit institutions and internal regulations of the non-bank credit institution;
b) The non-bank credit institution must submit a report to the SBV (via the Bank Supervision and Inspection Agency), the SBV’s branch of the province or city where the branch is located (where the Bank Supervision and Inspection Office is not available) on its satisfaction of the requirements for commencement of the branch's operations at least 15 business days before the estimated date of commencement of the branch's operations;
c) The non-bank credit institution shall start operations of the branch after it satisfies the requirements set forth in Point a of this Clause, completes all procedures for registration of the branch’s operations in accordance with laws, and publishes information according to Article 11 hereof.
3. Commencement of operations of the representative office or administrative unit:
a) The non-bank credit institution carries out procedures for registration of operations of the representative office or administrative unit in accordance with laws;
b) The non-bank credit institution decides the commencement of operations of its representative office or administrative unit after completing all procedures specified in Point a of this Clause and publishing information according to Article 11 hereof;
c) The non-bank credit institution must give a notification to the SBV (via the Bank Supervision and Inspection Agency), the SBV’s branch in the province or city where the representative office of administrative unit is located (where the Bank Supervision and Inspection Office is not available) at least 15 business days before the commencement of operations of the representative office of administrative unit.
Article 11. Publishing information concerning establishment of branches, representative offices and administrative units
Within 07 business days before the planned date of commencement of operations of the branch, representative office or administrative unit, the non-bank credit institution must publish information concerning the establishment of the branch, representative office or administrative unit on the websites of the SBV and of the non-bank credit institution (if any), and on three consecutive editions of a daily printed newspapers or online newspapers of Vietnam.
Tìm kiếm
Thông tư 53/2018/TT-NHNN (Bản Word)