NEW REGULATION ON REVOCATION OF CREDIT INSTITUTIONS’ LICENSE

The State Bank of Viet Nam has issued Circular No. 24/2017/TT-NHNN guiding the order and procedures for revocation of license and liquidation of assets of credit institutions and foreign bank’s branches.

The Circular also stipulates the order and procedures for revocation of license of representative office of foreign credit institutions and other foreign institutions having banking activities in Viet Nam.

Foreign credit organizations and foreign banks’ branches shall have to identify their ability to pay debts and other property obligations before and during the process of liquidation of assets, dissolution and revocation of license.

The State Bank of Viet Nam only accepts the dissolution when the credit organizations and branches of foreign banks are capable of paying off all debts and other property obligations.

In case the State Bank of Viet Nam detects that the foreign credit organizations and foreign banks’ branches fail to pay all their debts and other property obligations, it shall issue decision to end the liquidation process and then the Point 1e, Chapter VIII of the Law on Credit Institutions shall be applied.

The Circular will take effect since February 26, 2018.

Source: VGP