Headlines 09/11/2020 11:31 SA

Regulations on authority to withdraw credit institution’s licenses are ready to take effect

Thu Linh

State Bank of Vietnam promulgates the Circular No. 11/2020/TT-NHNN amending the Circular No. 24/2017/TT-NHNN mainly regarding the processes and procedures for withdrawal of licenses and liquidation of assets of credit institutions and foreign bank branches.

According to this document, the authority to withdraw licenses from credit institutions and foreign bank branches is regulated as follows:

- Governor of the State Bank of Vietnam (hereinafter referred to as Governor) is accorded authority to issue the decision to:

+ Withdraw licenses from credit institutions;

+ Withdraw licenses from foreign bank branches that are subject to microprudential control and supervision actions taken by Bank Supervision and Inspection Agency under the Governor’s authorization.

- Directors of state bank branches are accorded authority to withdraw Licenses from foreign bank branches whose offices are locally located, except the cases under the Governor’s decision-making jurisdiction.  

Furthermore, Directors of state bank branches are authorized to decide the withdrawal of Representative Office Licenses of foreign credit institutions and other foreign banking entities operating at localities under their jurisdiction.  

Circular No. 11/2020/TT-NHNN is entering into force on December 17, 2020.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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