On 31/12 2018, the State Bank issued Circular No. 51/2018/TT-NHNN regulating conditions, dossiers, order and procedures for approving the capital contribution and purchase of shares of credit institutions. . This Circular takes effect from 01/03/2019.
Accordingly, Circular No. 51/2018/TT-NHNN stipulates the order and procedures for approving capital contribution, buying shares of credit institutions (Article 6), specifically as follows:
- Credit institutions shall make 02 sets of dossiers as prescribed in Article 5 of this Circular and send them to the State Bank (via the Banking Inspection and Supervision Agency);
- Within 07 days from the date of receipt of a complete and valid dossier, the Banking Inspection and Supervision Agency shall send a written document to the public for comments:
- State Bank branches in provinces, cities where credit institutions are headquartered to meet the conditions prescribed in this Circular;
- Units of the State Bank on capital contribution, share purchase, debt transfer into contributed capital of credit institutions (if necessary).
- From the date of receiving the documents, the above agencies have 10 days to review and comment in writing to the Banking Inspection and Supervision Agency.
Within 14 days from the date of receiving comments from relevant agencies, Banking Inspection and Supervision Agency appraises dossiers and submits to the Governor of the State Bank;
- Within 45 days from the date of receipt of a complete and valid file, the State Bank shall issue a written approval or disapproval of the capital contribution, share purchase, and debt transfer into contributed capital of the credit institution;
- Within 12 months from the date the State Bank issues a written approval, the credit institution must complete the capital contribution, share purchase, and debt transfer into contributed capital.
In summary, the provisions on the order and procedures for approving the capital contribution, buying shares of credit institutions in Circular 51/2018/TT-NHNN are aimed at strengthening procedural clarity, at the same time, opening providing opportunities for organizations and individuals who are planning to invest in the finance and banking sector.
