Tiếng Việt

Legal update relating to Finance and Credit (Monthly Legal Update – 08&09/2022)

by | Sep 5, 2022 | Banking, EN, Legal Update | 0 comments

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/08/2022

1.1. Circular No. 04/2022/TT-NHNN regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches

  • Name of legal document: Circular No. 04/2022/TT-NHNN issued on 16/06/2022 by the State Bank of Vietnam regulations on application of interest rates on premature withdrawal of deposits from credit institutions and foreign bank branches (referred to as the “Circular No. 04/2022/TT-NHNN”).
  • Effective date: 01/08/2022.

Some contents should be noted: Stipulating on interest rates on premature withdrawal of deposits.

Specifically, Article 5 of Circular No. 04/2022/TT-NHNN stipulates: “Article 5. Interest rates on premature withdrawal of deposits

  1. When a client withdraws all of the deposit: credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or the currency of the deposit when such client withdraws it.
  2. When a client withdraws a part of the deposit:a) Regarding the part of withdrawn deposit before maturity, credit institutions shall apply a maximum interest rate equal to its lowest interest rate of demand deposits based on the type of client and/or currency of the deposit when such client withdraws it;b) Regarding the remaining deposit, credit institutions shall apply the interest rate equal to the interest rate applied to the deposit that the client has withdrawn a part.”

1.2. Circular No. 05/2022/TT-NHNN abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam

  • Name of legal document: Circular No. 05/2022/TT-NHNN issued on 29/06/2022 by the State Bank of Vietnam abolish a number of legal documents promulgated by the Governor of the State Bank of Vietnam (referred to as the “Circular No. 05/2022/TT-NHNN”).
  • Effective date: 15/08/2022.

Some contents should be noted: Abolish (i) Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing; and (ii) Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.

Specifically, clause 1 and clause 7 Article 1 of Circular No. 05/2022/TT-NHNN stipulates: “Article 1. Abolish all legal documents

The following legal documents promulgated by the Governor of the State Bank are abolished:

Decision No. 1557/2001/QD-NHNN dated December 14, 2001 of the Governor of the State Bank promulgating the regulation on inter-bank electronic clearing.

…

Circular No. 27/2014/TT-NHNN dated September 18, 2014 of the Governor of the State Bank on amendments to Circular no. 16/2010/TT-NHNN dated June 25, 2010 providing guidance on implementation of Decree no. 10/2010/ND-CP dated February 12, 2010 of the Government on credit information.”

1.3. Circular No. 06/2022/TT-NHNN amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks

  • Name of legal document: Circular 06/2022/TT-NHNN issued on 30/06/2022 by the State Bank of Vietnam amendments and supplements to some Articles of Circular No. 50/2018/TT-NHNN December 31, 2018 of the Government of the state bank of Vietnam applications and procedures for granting approval for changes of commercial banks and foreign branch banks (referred respectively to as the “Circular No. 06/2022/TT-NHNN” and “Circular No. 50/2018/TT-NHNN”).
  • Effective date: 15/08/2022.

The content should be noted:

  • Firstly, amending and supplementing regulations on rules for preparing and submitting applications for approval for changes specified in Clause 4, Article 3 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

  1. Amending and supplementing Clause 4, Article 3[1] as follows:

“4. Dossiers shall be submitted directly at the One Door Department or via postal service to the State Bank of Vietnam or the State Bank’s branches in provinces and cities (hereinafter collectively referred to as the State Bank).””

Secondly, amending and supplementing regulations on the power to grant approval for changes are specified in Clause 1, Article 4 of Circular No. 50/2018/TT-NHNN.

Specifically, Clause 1 Article 1 of Circular No. 06/2022/TT-NHNN stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN

…

2. Amending and supplementing Clause 1, Article 4[2] as follows:

“1. The Governor of the State Bank shall approve the changes specified in Clause 1, Article 1 of this Circular for commercial banks and large-scale foreign bank branches under the decision of the Governor of the State Bank; content of changing the location of the head office of the foreign bank branch other than the province or city where the foreign bank branch is located.””

1.4. Circular No. 08/2022/TT-NHNN regulations on banking supervision order and procedures

  • Name of legal document: Circular 08/2022/TT-NHNN issued on 30/06/2022 by the State Bank of Vietnam regulations on banking supervision order and procedures (referred to as the “Circular No. 08/2022/TT-NHNN”).
  • Effective date: 01/09/2022.

The content should be noted: Stipulating banking supervision order and procedures

Specifically, Article 5 of Circular No. 08/2022/TT-NHNN stipulates: “Article 5. Order and procedures for banking supervision

  1. The order and procedures for banking supervision shall be as follows:a) Step 1: Collect, synthesize and process documents, information and data;b) Step 2: Implement compliance monitoring and/or risk monitoring;c) Step 3: Make a monitoring report, propose handling measures.
  2. The monitoring, expediting and inspecting of the implementation of inspection conclusions by credit institutions and foreign bank branches shall comply with the Government’s regulations on the implementation of inspection conclusions and regulations in this Circular.”

2. LEGAL DOCUMENTS ARE ISSUED IN 07/2022

Consolidated document No. 11/VBHN-NHNN stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks

  • Name of legal document: Consolidated document No. 11/VBHN-NHNN issued on 07/07/2022 by the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks.
  • Effective date: 07/07/2022.

The content should be noted: Consolidating (i) Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks, effective from February 15, 2019; and (ii) Circular No. 06/2022/TT-NHNN dated June 30, 2022 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 50/2018/TT-NHNN dated 31 December 2018 of the Governor of the State Bank of Vietnam stipulating applications and procedures for granting approval for changes of commercial banks and foreign branch banks, effective from August 15, 2022.

[1] Article 3. Rules for preparing and submitting applications for approval for changes

…

4. The application shall be submitted, directly or by post, to the State Bank of Vietnam (through the Banking Supervision Agency) or the authorized State Bank branch of a province or city (hereinafter referred to as “the State Bank”).

[2] Article 4. The power to grant approval for changes

1. The Governor of the State Bank shall grant approval for changes specified in Clause 1 Article 1 of this Circular, of large-scale commercial banks and FBBs under the decision of the Governor of the State Bank of Vietnam.