CONDITIONS FOR CAPITAL CONTRIBUTION OR SHARE PURCHASE BY A CREDIT INSTITUTION
On December 31, 2018, the State Bank of Vietnam issues the Circular No. 51/2018/TT-NHNN on prescribing the conditions, dossiers, order and procedures for approving capital contribution and share purchase by credit institutions.
Accordingly, Conditions for capital contribution or share purchase aimed to establish or acquire subsidiaries specified at Points a and c, Clause 1, Article 1 of this Circular (except subsidiaries operating in the field of debt management and asset exploitation) are:
- Capital contribution or share purchase is specified in the establishment and operation license of the credit institution;
- The capital adequacy ratio specified at Point b, Clause 1, Article 130 of the Law on Credit Institutions is ensured during the period of 24 months prior to the month of requesting capital contribution or share purchase, and at the time of completing capital contribution or share purchase under the State Bank’s approval;
- The real value of the charter capital at the time of completing capital contribution or share purchase is not lower than the legal capital;
This Circular takes effect on March 1, 2019.
