Credit organizations must adhere to capital contribution and share purchases limits from 1/7/2025.

Expected by 1/7/2025, credit institutions must comply with capital contribution and share purchase limits

This draft Circular regulates credit institutions to establish and implement a roadmap to ensure compliance with the provisions of Clause 5, Article 137 of the Law on Credit Institutions, including the following cases:

Credit institutions have contributed capital, purchased shares of enterprises, other credit institutions as related parties of major shareholders, contributing members of the credit institution arising before 01/7/2024.

Subsidiaries of credit institutions have contributed capital, purchased shares of enterprises, other credit institutions as shareholders, contributing members of the credit institution arising before 01/7/2024.

Subsidiaries of credit institutions have contributed capital, purchased shares of enterprises, other credit institutions as related parties of major shareholders, contributing members of the credit institution arising before 01/7/2024.

The cut-off date for determining lists for establishing compliance roadmap

According to the draft, 30/6/2024 is the deadline for determining the data and the list for establishing compliance roadmap for capital contribution, share purchase limits of credit institutions, subsidiaries of credit institutions.

The compliance roadmap ensures that by no later than 01/07/2025, credit institutions, subsidiaries of credit institutions comply with the provisions on capital contribution, share purchase limits stated in Clause 5, Article 137 of the Law on Credit Institutions.

Establish a roadmap for credit institutions to comply with the provisions on capital contribution, share purchase limits at point b, Clause 5, Article 137 of the Law on Credit Institutions

Credit institutions propose that major shareholders, contributing members prepare lists of enterprises, other credit institutions as related parties and send them to the credit institutions.

Credit institutions review, determine businesses, credit institutions in the list that the credit institution is contributing capital, purchasing shares.

Credit institutions coordinate with major shareholders, contributing members related to businesses, credit institutions to establish a roadmap for compliance with the provisions on capital contribution, share purchase limits at point b, Clause 5, Article 137 of the Law on Credit Institutions. The compliance roadmap of the credit institution must include at least the following contents:

– List of major shareholders, contributing members related to enterprises, credit institutions, including information:

For individuals: Full name, personal identification number, nationality, passport number, date of issuance, place of issuance of the foreign shareholder, current residence (in case different from the registered place of permanent or temporary residence); information about the quantity, percentage of ownership of shares, capital contribution part to charter capital that individuals are currently owning at the credit institution (including the contributed capital part, authorized shares, entrusted for other organizations, individuals); information about organizations, individuals authorized, entrusted and the relationship with major shareholders, contributing members;

For organizations: Name of the organization, certificate of business registration or equivalent document number, date of issuance, place of issuance, tax identification number, headquarters address; information about the quantity, percentage of ownership of shares, capital contribution part to charter capital that organizations are currently owning at the credit institution (including the contributed capital part, authorized shares, entrusted for other organizations, individuals); information about organizations, individuals authorized, entrusted and the relationship with major shareholders, contributing members;

– List of enterprises, credit institutions including information: Name of the enterprise, certificate of business registration or equivalent document number, date of issuance, place of issuance, tax identification number, headquarters address and the relationship with major shareholders, contributing members of the credit institution; information about the quantity, percentage of ownership of shares, capital contribution part to charter capital that the credit institution is currently owning at each enterprise, credit institution (including the contributed capital part, authorized shares, entrusted for other organizations, individuals); information about organizations, individuals authorized, entrusted and the relationship with major shareholders, contributing members;

– Measures and implementation roadmap to comply with the provisions on capital contribution, share purchase limits at point b, Clause 5, Article 137 of the Law on Credit Institutions.

Credit institutions send the compliance roadmap to SBV (through the Inspection and Supervisory Agency of the credit institution), major shareholders, contributing members concerned within 90 days from the effective date of this Circular.

If necessary, the Inspection and Supervisory Agency of the SBV will request credit institutions to amend, complete the compliance roadmap. Within 15 days from the date of receiving the request of the Inspection and Supervisory Agency, credit institutions must amend, complete and send the compliance roadmap to SBV (through the Inspection and Supervisory Agency of the credit institution), major shareholders, contributing members concerned.

Nhat Quang