Cooperative Bank Licensing in the Conversion from the Central People’s Credit Fund

Short answer:The conversion of the Central People’s Credit Fund into a cooperative bank was a historical transitional mechanism, implemented under Circular No. 31/2012/TT-NHNN and completed many years ago. Circular 31/2012/TT-NHNN hasexpired since 01/7/2024, so there is currently no “conversion” procedure open for new applications. Cooperative bank operating licenses are now governed bythe Law on Credit Institutions 2024 (No. 32/2024/QH15)and guiding documents of the State Bank of Vietnam.

Historical background of the conversion

Previously, the Central People’s Credit Fund was converted into a cooperative bank under the roadmap for restructuring the people’s credit fund system, with dossiers and procedures set out in Circular No. 31/2012/TT-NHNN of the State Bank of Vietnam. This conversion process has been completed, and the cooperative bank was licensed and has been operating stably.

Current legal status of Circular 31/2012/TT-NHNN

Circular No. 31/2012/TT-NHNN ceased to be effective as of 01/7/2024. This means:

• There is no longer any legal basis for carrying out the procedure of converting the Central People’s Credit Fund into a cooperative bank under this circular;
• The provisions on dossiers, conditions and conversion procedures in the circular no longer apply to any new applications;
• Any reference to Circular 31/2012/TT-NHNN as a currently effective procedure is no longer accurate.

Cooperative bank licenses under current law

The Law on Credit Institutions 2024 (No. 32/2024/QH15) continues to recognize cooperative banks as a type of credit institution in the system. The issuance, amendment, supplementation and revocation of licenses of credit institutions — including cooperative banks — is now carried out under the Law on Credit Institutions 2024 and the State Bank of Vietnam’s guiding circulars on dossiers and licensing procedures for each type.

Therefore, organizations and individuals wishing to learn about cooperative bank licenses should rely on the current legal framework, not the historical conversion mechanism of Circular 31/2012/TT-NHNN.