05 CASES OF FREEZING ASSETS OF BRANCHES OF FOREIGN BANK
On November 22, 2018, the State Bank of Vietnam issues the Circular No. 27/2018/TT-NHNN on cases of freezing of capital and assets of branches of foreign banks.
Accordingly, there are 05 cases of freezing capital and assets of branches of foreign banks, include:
- The true value of granted capital of the foreign branch bank is smaller than the legal capital for more than 06 months;
- The branch fails to maintain the adequacy ratio and fails to achieve the adequacy ratio by the deadline imposed by the State bank;
- The accumulated loss incurred by the foreign branch bank exceeds 50% of its granted capital and reserve funds specified in the latest audited financial statement;
- The parent bank fails to fulfill its commitments regarding its branch in Vietnam despite the State bank’s request;
- There is information that the parent bank is suspected of insolvency or put under special control by the authority of its home country or it is ordered to undergo dissolution...
This Circular takes effect on January 10, 2019.
