Press Release on issuance of Circular No.04/2015/TT-NHNN
The Governor of the State Bank of Vietnam (SBV) issued Circular No.04/2015/TT-NHNN on people’s credit funds. This Circular will take effect from June 1, 2015.
Accordingly, the following documents will cease to be effective:
- Circular No.08/2005/TT-NHNN dated December 30, 2005 on guiding the implementation of several articles of Decree No.48/2001/ND-CP dated August 13, 2001 on organizational structure and operations of people’s credit funds and Decree No.69/2005/ND- CP dated May 26, 2005 on revising several articles of Decree No.48/2001/ND-CP dated August 13, 2001 on organizational structure and operations of people’s credit funds;
- Circular No06/2007/TT- NHNN dated November 6, 2007 on revising Circular No. 08/2005/TT-NHNN dated December 30, 2005;
- Articles No.4, 5, 6, 7, 8, 9, 10 and 11 of Decision No. 24/2006/QD- NHN dated June 6, 2006 on issuing Regulations on granting and revoking licenses of people’s credit funds; opening and terminating operations of transaction centers, branches, representative offices, transaction offices and transaction points of people’s credit funds; splitting and M & A of people’s credit funds; liquidation of people’s credit funds under the SBV’s monitoring.
- Item 4 of Article 1 of Decision No.26/2008/QD – NHNN dated September 9, 2008 on revising several articles of Regulations issued injunction with Decision No. 24/2006/QD- NHN dated June 6, 2006 on granting and revoking licenses of people’s credit funds; opening and terminating operations of transaction centers, branches, representative offices, transaction offices and transaction points of people’s credit funds; splitting and M & A of people’s credit funds; liquidation of people’s credit funds under the SBV’s monitoring.
- Decision No.31/2006/QD – NHNN dated July 18, 2006 on issuing regulations on qualifications of members of the Board of Directors, Board of Control and managers of people’s credit funds.
- Decision No.45/2006/QD-NHNN dated September 11, 2006 on regulations on structure and performance of the Board of Directors, Board of Control and Management Board of people’s credit funds.
Circular No. 04/2015/TT- NHNN includes 05 Chapters and 54 articles as follows:
Chapter I: General provisions including 9 Articles (Articles 1 to 9) stipulate the scope of governing, the implementers, interpretation, competence to grant license, operational duration and location, operational objectives and principle of compiling records for a request of granting license.
Chapter II: Specific provisions divided into 7 sections including 32 Articles (Articles 10 to 41) as follows:
Section 1: Granting license including 07 Articles (Articles 10 to 16) stipulates conditions, orders, procedures and dossiers of granting a license, fee for granting a license, inauguration, and the utilization of the license.
Section 2: Board of Directors, Board of Supervisors and General Director including 09 Articles (Article 17 to 25) stipulate organization and performance of the Board of Directors and Board of Supervisors; tasks and rights of the Board of Directors, Chairman of Board of Directors, Board of Supervisors, Chief of Board of Supervisors, specialized supervisors; standards of Chairman and members of Board of Directors, Chief and members of Board of Supervisors, specialized supervisors and Directors of people’s credit funds; meetings of Board of Directors; approval of draft list of members of Board of Directors, members of Board of Supervisors and Directors of people’s credit funds.
Section 3: Charter capital, capital contribution, transfer of contribution capital including 05 Articles (Articles 26 to 30) stipulate charter capital, forms of charter capital contribution and capital of members, forms of paying interest, transferring and paying contribution capital.
Section 4: Regulations on members including 02 Articles (Articles 31 to 32) stipulate membership approval, termination of membership status of people’s credit funds.
Section 5: Members’ Meeting including 03 Articles (Articles 33 to 35) stipulates members’ meeting, number of members and voting rights in members’ meeting, notice about members’ meeting.
Section 6: Operations of people’s credit funds including 04 Articles (Articles 36 to 39) stipulates operations of people’s credit funds including capital mobilization, lending and other operations; and regulations on lending management.
Section 7: Rights and responsibilities of people’s credit funds including 02 Articles (Articles 40 to 41) stipulate rights and responsibilities of people’s credit funds.
Chapter III: Finance, final accounting, reporting and violation handling including 03 Articles (Articles 42 to 44) stipulate finance regime, final accounting, reporting and violation handling.
Chapter IV: Regulations on transitional time including 07 Articles (Articles 45 to 51) stipulate substances and transitional time for people’s credit funds with operational locations; contribution capital ratio of a member; depositing; standards of ineligible members.
Chapter V: Terms of execution including 03 Articles (Articles 52 to 54) stipulate the responsibilities of the relevant entities, the effective date, and the implementation.
The issuance of this Circular aims at guiding Law on Credit Institutions, making a legal basis for successfully implementing set objectives, measures of restructuring the system of people’s credit funds as approved in Decision No.254/QD – TTg dated March 1, 2013 in order to gradually develop the system of people’s credit funds more safely and effectively, contributing to the socio-economic development.
TLH