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THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
492/2000/QD-NHNN5
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Hanoi, November 28, 2000
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DECISION
ISSUING THE REGULATION ON CAPITAL
CONTRIBUTION AND SHARE PURCHASE BY CREDIT INSTITUTIONS
THE VIETNAM STATE BANK GOVERNOR
Pursuant to December 12, 1997 Law No.
01/1997/QH10 on the State Bank of Vietnam and Law No. 02/1997/QH10 on Credit
Institutions;
Pursuant to the Government’s
Decree No. 15/CP of March 2, 1993 on the tasks, powers and State management
responsibilities of the ministries and ministerial-level agencies;
At the proposal of the director of the Department of Banks and Non-Bank Credit
Institutions,
DECIDES:
Article 1.- To issue together with this Decision the
Regulation on capital contribution and share purchase by credit institutions.
Article 2.- This Decision takes effect 15 days after its
signing. The regulations on capital contribution and share purchase in the following
documents now cease to be effective:
1. The Regulation on monetary - credit business
safety for credit institutions, issued together with the State Bank Governor’s Decision No. 107/QD-NH5 of June 9, 1992.
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3. The State Bank Governor’s Directive No. 08-CT/NH5 of July 23, 1997 on
reorganizing the joint-venture capital contribution and share purchase
activities of commercial banks and Vietnam Investment and Development Bank.
4. The Regulation on shareholders, shares, share
certificates and charter capital of joint-stock credit institutions, issued
together with the State Bank Governor’s
Decision No. 275/QD-NH5 of November 7, 1994.
Article 3.- The Office’s
director, the director of the Department of Banks and Non-Bank Credit
Institutions, the heads of the units under the State Bank, the directors of the
State Bank’s branches in the
provinces and centrally-run cities, the chairmen of the management boards and
the general directors (directors) of credit institutions shall have to
implement this Decision.
FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Tran Minh Tuan
REGULATION
ON CAPITAL CONTRIBUTION AND SHARE PURCHASE BY
CREDIT INSTITUTIONS
(Issued together with the State Bank
Governor’s Decision No. 492/2000/QD-NHNN5 of November
28, 2000)
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GENERAL PROVISIONS
Article 1.-
1. Credit institutions under the following forms
of credit institution may use their charter capitals and reserve funds to
contribute capital to and/or purchase shares of enterprises and other credit
institutions according to this Regulation and other relevant law provisions:
a/ Banks:
- Commercial banks;
- Development banks;
- Investment banks.
b/ Non-bank credit institutions:
- Financial companies.
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Chapter
II
SPECIFIC PROVISIONS
Article 2.- Credit institutions may contribute capital to
and/or purchase shares of enterprises or other credit institutions as follows:
1. Contributing capital to and/or purchasing
shares of enterprises:
a/ Contributing capital together with foreign
investors for the establishment of joint-venture enterprises;
b/ Purchasing shares of joint-stock companies.
2. Contributing capital to and/or purchasing
shares of other credit institutions:
a/ Contributing capital together with foreign
credit institutions for the establishment of joint-venture credit institutions;
c/ Contributing capital to and/or purchasing
shares of joint-stock credit institutions.
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1. The ratio of each credit institution’s amount of capital contributed to or shares
purchased from an enterprise to such enterprise’s
charter capital must not exceed:
a/ 11%, if the credit institution is a bank;
b/ 20%, if the credit institution is a non-bank
credit institution (financial companies).
2. Where credit institutions contribute capital
together with foreign investors for the establishment of joint-venture enterprises
in Vietnam, the capital contribution levels shall comply with the provisions of
the Law on Foreign Investment in Vietnam as well as other relevant law
provisions, and must be approved in writing by the State Bank Governor.
3. The ratio of each credit institution’s total amount of capital contributed to and shares
purchased from all enterprises to its charter capital and reserve fund must not
exceed:
a/ 30%, if the credit institution is a bank;
b/ 40%, if the credit institution is a non-bank
credit institution (financial companies).
Article 4.- A credit institution’s
amount of capital contributed to or shares purchased from another credit
institution and a credit institution’s
total amount of capital contributed to or shares purchased from all other
credit institutions, shall be stipulated by such credit institution itself. A
credit institution’s total amount of
capital invested in other credit institutions in the forms of capital
contribution and share purchase must be exclusive of its own capital when the
minimum capital safety percentage is calculated.
Where credit institutions contribute capital
together with foreign credit institutions for the establishment of
joint-venture credit institutions in Vietnam, the capital contribution levels
shall comply with the provisions of the Government’s
Decree No. 13/1999/ND-CP of March 17, 1999 on the organization and operation of
foreign credit institutions and their representative offices in Vietnam as well
as relevant law provisions.
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1. A written document of the chairman of the
management board or an authorized person requesting the State Bank Governor to
approve the contribution of joint-venture capital, which briefly states the
necessity of the contribution of joint-venture capital; the name and address of
the foreign investor; each party’s
amount of contributed capital; the joint venture’s
activities and the scope thereof.
2. The written authorization of the chairman of
the management board (in case of authorization).
3. The draft joint-venture plan, clearly stating
the necessity, the economic efficiency of the joint-venture capital
contribution; the name and address of the foreign investor; the last three
years’ financial status of the
foreign investors; each party’s
amount of contributed capital; the joint venture’s
operation contents and scope; the operation plan for the first three years.
Chapter
III
IMPLEMENTATION PROVISIONS
Article 6.- For credit institutions which have contributed
capital to or purchased shares of enterprises according to current regulations
but now do not fall into the categories that may contribute capital and/or
purchase shares, or have had the amounts of capital contributed to and/or
shares purchased from enterprises higher than the maximum ratios prescribed in
this Regulation, within 2 years from the date this Regulation comes into force
they must take measures to adjust such amounts compliant with this Regulation.
Article 7.- Credit institutions shall report their
contribution of capital to and/or purchase of shares of enterprises and other
credit institutions prescribed in this Regulation according to the State Bank’s regime of accounting information and reporting
and banking statistics.
Article 8.- Credit institutions that violate the provisions
of this Regulation shall, depending on the nature and seriousness of their
violations, be sanctioned according to the Government’s
Decree No. 20/2000/ND-CP of June 15, 2000 on sanctioning administrative
violations in the domain of monetary and banking activities.
Article 9.- Any amendments and supplements to the provisions
of this Regulation shall be decided by the State Bank Governor.