Detailed procedures regarding changes on organization and operation of commercial banks in Vietnam

Following the Government's Decree No.59/2009/ND-CP dated July 16th, 2009 on organization and operation of commercial banks (CBs), the State Bank of Vietnam (SBV) on February 26th, 2010 issued the Circular No.06/2010/TT-NHNN providing further guidelines on registration of changes on organization and operation of CBs.

Principally, all changes regarding organization and operation of CBs shall need to be examined and approved in writing by the Governor of SBV. If CBs move its office to another city or province it must get the consent of the provincial SBV and the People's Committee of the current location and the new location. It is further noted that any appointment or change on members of Board of Management, Inspection Committee, General Director, Vice General Director and Chief Accountant (applicable to CBs having more than 50% charter capital owned by the State) must be notified to the competent SBV and approved in writing by the Governor. Such approvals are integrated parts of the operation license of CBs.

Additionally, this Circular stipulates the conditions and procedures where CBs increase its charter capital, redeem shares or register capital assignment.

Circular 06 will take effect from April 25th, 2010.