What are the regulations for a cooperative bank license when converting from the Central People’s Credit Fund?

What are the conditions for being granted a cooperative bank license when converting from the Central People’s Credit Fund?

Article 15 of Circular 31/2012/TT-NHNN stipulates the conditions for being granted a cooperative bank license including:

(1) Managers, executives and members of the Supervisory Board have all the standards and conditions as prescribed for the Central People’s Credit Fund at the time of conversion request.

(2) Have a Charter consistent with the provisions of the Law on Credit Institutions, the Law on Cooperatives and other relevant provisions of law.

(3) Has a headquarters, facilities and technology and information systems to ensure the bank’s operations.

What components are included in the application dossier for a cooperative bank license when converting from the Central People’s Credit Fund?

The application file for a cooperative bank license includes the elements specified in Article 16 of Circular 31/2012/TT-NHNN:

(1) Document of the Chairman of the Board of Directors of the Central People’s Credit Fund requesting the State Bank to grant a cooperative bank license;

(2) The cooperative bank charter has been approved by the first Congress of members;

(3) Minutes of the first General Assembly of members;

(4) Resolution passed by the first general meeting of members, which must at least contain the following contents:

a) Approve the Charter of the cooperative bank;

b) Results of official election of members of the Board of Directors and members of the Supervisory Board;

c) Approve the cooperative bank’s first 3-year business plan.

(5) Profile of members of a people’s credit fund, including: List, headquarter location, capital contribution amount.

(6) Profile of members who are legal entities other than the People’s Credit Fund (if any): List, headquarter location, amount of capital contribution.

(7) Document confirming ownership or legal right to use the location of the cooperative bank’s head office.

(8) Decision of the Board of Directors on the appointment of General Director of the cooperative bank.

(9) The first 3-year business plan was approved at the first Members’ Congress.

Accordingly, to be granted a License, the application needs to ensure that all of the above components are included.

Order, procedures, and fees for issuing a cooperative bank license when converting from the Central People’s Credit Fund

(1) Order and procedures are specified in Article 17 of Circular 31/2012/TT-NHNN:

– Within 15 working days from the date of holding the first Members’ Congress, the Central People’s Credit Fund shall prepare 01 (one) set of documents as prescribed in Article 16 of this Circular and send it directly or by post to the State Bank (Bank Supervision and Inspection Agency).

– Within 10 working days from the date of receiving complete and valid documents, the State Bank decides to issue the License.

(2) Licensing fee: Article 19 of Circular 31/2012/TT-NHNN:

– Licensing fees for cooperative banks are implemented in accordance with the law on fees and charges.

– Within 15 (fifteen) working days from the date of issuance of the License, the cooperative bank must pay the fee at the State Bank Transaction Office.

– The fees specified in Clause 1 of this Article are not deducted from charter capital and are not refundable in any case.

What does a cooperative bank license include?

The content of a cooperative bank license is specifically regulated in Article 18 of Circular 31/2012/TT-NHNN:

– License number; place of issue; date, month, year of issue;

– Name of cooperative bank:

+ Full name, abbreviated name in Vietnamese;

+ Full name, abbreviated name in English (if any);

+ Transaction name (if any).

– Location of head office;

– Content and scope of activities;

– Area of ​​operation;

– charter capital;

– Term of operation.

The State Bank specifies the content, scope of operations, area of ​​operation, and duration of operation in the License according to the form specified in Appendix No. 05 of Circular 31/2012/TT-NHNN.