Regulations on Forms of Credit Institution Restructuring

Accordingly, this Circular will subject to credit institutions like commercial banks, finance companies and other organisations and individuals related to the reshuffle of credit institutions.

 

Reorganisation forms of credit institutions include merger, consolidation and transformation of legal forms of credit institutions.

 

Merger refers to the fact that one credit institution or more transfers the entirety of assets, rights, obligations and legal benefits to a credit institution and terminates the existence of such merged credit institution.

 

Merger cases include commercial banks and finance companies merged into a commercial bank and financial companies merged into a finance company.

 

Consolidation signifies that two or more credit institutions transfer the entirety of assets, rights, obligations and legal interests to form a new entity and simultaneously terminate the existence of consolidated credit institutions.

 

Consolidated cases are commercial banks consolidated into a commercial bank; commercial banks and finance companies consolidated to form a commercial bank; and financial companies consolidated to establish a financial company.

 

In addition, the circular states that the scope of operations of restructured credit institutions must be consistent with the scope of operations of each type of credit institution under the provisions of law.

 

Specifically, the scope of operations of credit institution after the merger is operations of merging credit institution. Credit institution after the merger will be added operations of merged credit institution if it satisfies conditions provided by law.

 

The scope of operations of consolidated credit institution is operations of credit institutions consolidated it satisfies conditions provided by law.

 

The scope of operations of credit institutions changing legal form is operations of credit institutions with the legal form changed.

 

After the SBV approves of the merger, consolidation and change of legal form, reorganised credit institutions shall announce the change on the media of the SBV, on a daily printed national newspaper in three consecutive issues or a Vietnamese electronic newspaper within 7 working days, and must be posted at head offices, branches, transaction offices and subsidiary units.

 

This circular takes effect on March 1, 2016.