On June 22, 2023, the State Bank issued Circular 05/2023/TT-NHNN ("Circular 05") amending and supplementing provisions of Circular 30/2015/TT-NHNN ("Circular 30") regarding the licensing, organization, and operations of non-bank credit institutions ("NBCIs"). According to the new regulations, there are several amendments aimed at providing more favorable conditions for the establishment and operations of NBCIs for both organizations and individuals. Below is a summary of notable changes compiled by ATA Legal Services.
1. Reducing requirements for founding shareholders ("FSHs") of non-bank joint-stock credit institutions (NBCIs)
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Circular 30 |
Circular 05 |
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(i) Having a minimum of 02 FSHs as organizations; (ii) Taking responsibility for the legality of contributed capital; (iii) Committing to providing financial support to address difficulties in the event that the non-bank credit institution faces capital constraints or payment and liquidity issues; (iv) Not being a strategic shareholder, FSH, owner, or founding member of another credit institution established and operating in Vietnam; (v) Having the financial capacity to contribute capital to establish the non-bank credit institution; not using entrusted capital, mobilized capital, or borrowed capital from other NBCIs, foreign bank branches, organizations, or individuals to contribute capital. |
(i) Not being a strategic shareholder, founding shareholder, owner, or founding member of another credit institution established and operating in Vietnam, and (ii) Not using mobilized capital or borrowed capital from other organizations or individuals to contribute capital.
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2. Shortening the time frame for the State Bank of Vietnam ("SBV") to confirm the validity of applications for non-bank credit institution establishment licenses
Under the new regulations, the deadline for the SBV to confirm the receipt of complete and valid documentation for reviewing the principle approval or requesting additional documents in case the application for a license is incomplete is 10 working days from the date of receiving the application (instead of the previous 30 days as stipulated in Circular 30).
3. Non-bank credit institutions (NBCIs) are not required to register their Articles of Association and amended Articles of Association with the State Bank of Vietnam (SBV)
According to the provisions in Circular 05, NBCIs only need to notify the SBV by sending the Articles of Association directly or via postal services to the SBV's head office. The Articles of Association must be approved by the General Meeting of Shareholders or the Board of Members within a period of 15 days from the date of approval. NBCIs are fully responsible under the law for the content of the Articles of Association and any amendments or supplements made to them.
Circular 05 shall come into effect on August 6, 2023, and repeal Clause 2, 3, 5, and 6 of Article 1 of Circular 15/2016/TT-NHNN, revoke Article 4 of Circular 17/2018/TT-NHNN, and repeal Clause 7 of Article 1, as well as Clauses 1, 2, 3, and 4 of Article 2 of Circular 01/2019/TT-NHNN.
Comment: