MUST HAVE VND 100,000 BILLION OF ASSETS TO ESTABLISH BRANCHES IN FOREIGN COUNTRIES
This is required under the Circular No. 21/2013/TT-NHNN dated September 09, 2013 of the Vietnam State Bank prescribing commercial bank’s operation network.
Specifically, in order to establish branches in foreign countries, banks invested 100% of capital in foreign countries; commercial banks must meet fully the following conditions: the real value of charter capital at time of December 31 of the previous year adjacent to the request year is not lower than the legal capital; Complying with limitations to ensure safety in operation of credit institutions uninterruptedly during 12 months before the request month; the rate of bad debts in comparison with the total outstanding balance at time of December 31 of the previous year adjacent to the request year does not exceed 3%; The minimum operational duration is three years counted from the date of starting activities till the time of request; The total assets reach VND 100,000 billion business or more according to the audited consolidated financial statement at time of December 31 of the previous year adjacent to the request year; The business operation has interest under the audited consolidated financial statement and separate financial statements of the previous year adjacent to the request year…
In addition, under this Circular, for commercial banks with operational duration of less than 12 months, they are permitted to establish not exceeding three branches and these branches are not entitled to locate in the same province or centrally- run city. For commercial banks with operational duration of 12 months or more, they are permitted to establish not exceeding five branches in one financial year. Commercial bank is entitled to establish 10 branches at each Hanoi urban area or Ho Chi Minh urban area at maximally.
This Circular takes effect on October 23, 2013 and replaces the Decision No. 13/2008/QD-NHNN dated April 29, 2008.
