Thông tư 01/2022/TT-NHNN

CIRCULAR

AMENDMENT TO CIRCULAR NO. 21/2013/TT-NHNN DATED SEPTEMBER 9, 2013 OF GOVERNOR OF STATE BANK OF VIETNAM ON OPERATION NETWORK OF COMMERCIAL BANKS

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amendment to the Law on Credit Institutions dated November 20, 2017 (hereinafter referred to as “the Law on Credit Institutions”);

Pursuant to Law on Enterprises dated June 17, 2020;

Pursuant to Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government on functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At request of the Head of the SBV Bank Supervision and Inspection Agency

Governor of the State Bank of Vietnam promulgates Circular on amendment to Circular No. 21/2013/TT-NHNN dated September 9, 2013 of the Governor of State Bank of Vietnam on operation network of commercial banks.

Article 1. Amendments to Circular No. 21/2013/TT-NHNN

1. Amendments to Clause 12 Article 3:

“12. Urban area of Ho Chi Minh City consists of districts and district-level cities.”

2. Amendments to Article 4:

“Article 4. Entitlement for approval in network of commercial banks

1. Governor of State Bank of Vietnam (hereinafter referred to as “SBV”) shall decide whether to approve the establishment, termination of commercial banks, dissolution of domestic branches, agent offices, representative offices, service providers; establishment of branches, representative offices, overseas banks with 100% domestic capital.

2. Directors of SBV branches of branches and central-affiliated cities shall decide whether to approve:

a) Relocation of head office of domestic branches or transaction offices (including cases where the relocation occurs before the opening date);

b) Termination of branches and transaction offices (in case of voluntary termination);

c) Change of supervisory branches of transaction offices.

3. In specific cases, Governor of SBV shall consider the application for establishment of branches, representative offices, service providers, domestic transaction offices; branches, representative offices, overseas banks with 100% domestic capital of commercial banks on the basis of procedures under this Circular and practical conditions in order to:

a) Serve socio-economic development, politics, security, national defense, foreign affairs, and coordination of monetary policies from time to time;

b) Assist commercial banks in resolving people’s credit funds under special control;

c) Implement approved restructuring of credit institutions under special control.”

3. Amendments to Clause 3 Article 5:

“3. Applications of commercial banks shall be sent to SBV or SBV branches in person at the Single-window Department or via postal service or online (for applications under Clauses 1, 2, 3, 4, and 5 Article 17, Article 20 hereof and applications for voluntary termination of transaction offices mentioned under Article 24 hereof).”

4. Amendments to Point g Clause 1 Article 6:

“g) Not under network expansion restriction according to regulations on imposing penalties for administrative in monetary and banking sectors;”

5. Amendments to Clause 1 Article 13:

“1. Other than cases mentioned under Clause 3 Article 4 hereof, SBV shall consider and approve establishment of domestic branches and transaction offices of eligible commercial banks; approve establishment of domestic representative offices and service providers of commercial banks; establishment of branches, representative offices, overseas banks with 100% domestic capital once per financial year. Commercial banks shall produce application in accordance with Article 12 hereof and submit to SBV (via Bank Supervision and Inspection Agency) once before September 30 annually.”

6. Amendments to Clause 3 Article 13:

“3. Within 14 days from the date on which documents of Bank Supervision and Inspection Agency are received, People’s Committees of provinces and central-affiliated cities where the commercial banks expect to establish domestic branches and SBV branches where the commercial banks expect to establish domestic branches, transaction offices shall make their remarks in writing regarding application for establishment.”

7. Amendments to Article 14:

“Article 14. Opening of operation of domestic branches and transaction offices

1. Requirements for opening of domestic branches and transaction offices:

a) Have the right to own or legally utilize head office of the branches and transaction offices; head office must ensure storage of instruments (except for transaction offices), convenience and safety for transactions and assets, be installed with security, protection systems, constant electricity and communication supply systems satisfactory to fire safety;

b) Head office of branches where treasury is located must meet the standards of SBV. In case a commercial bank has more than one branch in the same province or central-affiliated city, at least one branch of the commercial bank must have cash treasury in accordance with regulations of SBV and the commercial bank must be responsible for transferring cash of branches without cash treasury to the branch with cash treasury at the end of each working day;

c) Branches and transaction offices must be equipped with information technology system that is connected to the head office while transaction offices must be connected to supervisory branches; maintain continuous operations of information technology systems and databases in order to ensure safety and security for professional operations;

d) Branches and transaction offices have the required managerial staff including branch directors, vice directors, directors of transaction offices or equivalent titles and professional employees;

dd) Branch directors or equivalent titles (for cases of branch opening) must meet all standards and requirements under Clause 5 Article 50 of the Law on Credit Institutions.

2. Commercial banks shall submit reports on satisfaction of requirements for opening domestic branches and transaction offices to SBV braches where the domestic branches and transaction offices are located at least 15 days prior to the opening day.

3. Commercial banks shall carry out the opening for domestic branches and transaction offices after meeting requirements under Clause 1 of this Article and completing procedures for registering branch operation (when opening branches) or issuing notice on business facilities (when opening transaction offices) as per the law.

4. Within 7 working days prior to the expected opening day of domestic branches or transaction offices mentioned under this Article, commercial banks must announce on website of SBV and the commercial banks, a printed daily newspaper in 3 consecutive issues or online newspapers in Vietnam.”

8. Amendments to Article 16:

“Article 16. Changing name of domestic branches, transaction offices

Commercial banks shall decide whether to change name of domestic branches, transaction offices; produce reports on the name change and submit to SBV branches where the head office of domestic branches and transaction offices are located within 5 working days from the date on which the domestic branches and transaction offices operate under the new name.”

9. Amendments to Point b Clause 4 Article 17:

“b) Within 10 working days from the date on which adequate applications are received in accordance with this Circular, SBV branches where head office of the branches, transaction offices are located shall issue documents approving or disapproving the relocation of head office of branches and transaction offices; in case of disapproval, the documents sent to commercial banks must include reasons for disapproval.”

10. Addition of Clause 6 to Article 17:

“6. In case of change of address of head office of domestic branches or transactions without relocation, commercial banks shall request SBV branches where head office of domestic branches and transaction offices are located in writing to verify the change to address of head office of domestic branches and transaction offices.

Within 15 working days from the date on which written request of commercial banks is received, SBV branches where head office of domestic branches and transaction offices are relocated shall send written confirmation for the address change of head office of domestic branches and transaction offices to the commercial banks.”

11. Amendments to Point b Clause 3 Article 20:

“b) Within 14 working days from the date on which adequate documents mentioned under this Circular are received, SBV branches where head office of branches are located shall issue (physical or electronic) documents approving or disapproving the request of the commercial banks; in case of disapproval, the documents sent to the commercial banks must specify reasons.”

12. Amendments to Article 21:

“Article 21. Disclosure of changes

Within 7 working days from the date on which documents sent by SBV approving the changes made by commercial banks under Clauses 1, 2, 3, 4, and 5 Article 17 and Article 20 hereof are received or from the date on which documents sent by SBV confirming the address change of head office of domestic branches or transaction offices without relocation according to Clause 6 Article 17 hereof or from the date on which changes under Articles 16, 18, and 19 hereof are implemented, commercial banks must disclose all of the changes on their website, at their head office, head office of domestic branches and transactions related to the commercial banks.”

13. Amendments to Clause 2 Article 24:

“2. Procedures for voluntary termination of domestic branches:

a) Commercial banks shall produce applications under Clause 1 of this Article and send to SBV branches where the head office is located;

b) Within 45 days from the date on which adequate applications mentioned under this Circular are received, SBV branches where head office of branches are located shall issue documents approving or disapproving the request of the commercial banks; in case of disapproval, the documents sent to the commercial banks must specify reasons.”

14. Amendments to Point b Clause 3 Article 24:

“b) Within 14 working days from the date on which adequate applications mentioned under this Circular are received, SBV branches where head office of transactions offices are located shall issue (physical or electronic) documents approving or disapproving the request of the commercial banks; in case of disapproval, the documents sent to the commercial banks must specify reasons.”

15. Amendments to Clause 4 Article 24:

“4. Within 45 days from the date on which written approval of SBV branches where head office of branches and transaction offices are located is issued under Point b Clause 2 and Point b Clause 3 of this Article, commercial banks must adopt legal procedures as per the law in order to terminate operation of said branches and transactions offices; submit reports on termination date to SBV (via Bank Supervision and Inspection Agency) and SBV branches where the branches and transaction offices are located.”

16. Amendments to Clause 2 Article 28:

“2. On a 6-monthly and annual basis, produce physical reports on details under Appendix No. 2 attached hereto to SBV (via Bank Supervision and Inspection Agency) in person or via postal service, including:

a) The report deadline:

- The report on the first 06 months of a year: July 31^st inclusive.

- The annual report: January 31 of the year following the report year at the latest.

b) The conclusion date of report data of each reporting period shall be that of accounting periods specified under the Law on accounting.”

Article 2. Replacement and removal of phrases, points, clauses, articles, appendices of Circular No. 21/2013/TT-NHNN

1. Replace the sentence “Thực hiện đúng, đầy đủ các quy định về phân loại nợ, trích lập dự phòng rủi ro theo quy định của Ngân hàng Nhà nước” (To conduct properly and fully provisions on classification of debts, setting up of risk provision in accordance with provision of state bank) with “Thực hiện đúng, đầy đủ các quy định về phân loại tài sản có, mức trích, phương pháp trích lập dự phòng rủi ro và việc sử dụng dự phòng để xử lý rủi ro trong hoạt động theo quy định của Ngân hàng Nhà nước tại thời điểm đề nghị” (To property and fully conduct provisions on classification of assets, risk provision amount and method, and use of risk provision in dealing with risks during operation according to regulations of State Bank at the time of application) under Point d Clause 1, Point d Clause 2 Article 6 of Circular No. 21/2013/TT-NHNN.

2. Replace the sentence “tỷ lệ nợ xấu so với tổng dư nợ tại thời điểm 31 tháng 12 của năm trước liền kề năm đề nghị” (the rate of bad debts in comparison with the total outstanding balance at time of December 31 of the previous year adjacent to the request year) with “tỷ lệ nợ xấu tại thời điểm 31 tháng 12 của năm trước liền kề năm đề nghị và tại thời điểm đề nghị” (the rate of bad debts at time of December 31 of the year preceding the requesting year and at the time of request) under Point d Clause 1 Article 6 of Circular No. 21/2013/TT-NHNN.

3. Replace the phrase “tỷ lệ nợ xấu so với tổng dư nợ” (the rate of bad debts in comparison with the total outstanding balance) with “tỷ lệ nợ xấu” (the rate of bad debts) under Point d Clause 2 Article 6 of Circular No. 21/2013/TT-NHNN.

4. Replace the sentence “Có tỷ lệ nợ xấu so với tổng dư nợ tại thời điểm 31 tháng 12 năm trước liền kề năm đề nghị” (The rate of bad debts in comparison with the total outstanding balance at time of December 31 of the previous year adjacent to the request year) with “Có tỷ lệ nợ xấu tại thời điểm 31 tháng 12 năm trước liền kề năm đề nghị và tại thời điểm đề nghị” (The rate of bad debts at time of December 31 of the year preceding the requesting year and at the time of request) under Point b Clause 2 Article 10 of Circular No. 21/2013/TT-NHNN.

5. Replace the word “điều kiện” (conditions) with “yêu cầu” (requirements) under Point a Clause 3 Article 17 of Circular No. 21/2013/TT-NHNN.

6. Replace Appendix No. 1 and Appendix No. 2 under Circular No. 21/2013/TT-NHNN with Appendix No. 1 and Appendix No. 2 attached hereto.

7. Annul Clause 14 Article 3, Point a Clause 2 Article 13 of Circular No. 21/2013/TT-NHNN.

Article 3. Organization for implementation

Chief of Office, Chief of Banking Inspectors and Supervisors, heads of entities affiliated to SBV, and commercial banks are responsible for organizing implementation hereof.

Article 4. Implementation

1. This Circular comes into force from March 15, 2022 except for Clause 2 of this Article.

2. Regulations on online documents of commercial banks and regulations on electronic approving documents of SBV branches mentioned under this Circular come into force from December 1, 2022.

3. This Circular annuls Clause 3 Article 1 of Circular No. 14/2019/TT-NHNN dated August 30, 2019 on amendments to Circulars prescribing periodic reporting policy of the State Bank of Vietnam./.