Circular No. 07/2025/TT-NHNN dated June 06, 2025 on amendments to Circular No. 39/2024/TT-NHNN prescribing special control over credit institutions

CIRCULAR

AMENDMENTS TO CIRCULAR NO. 39/2024/TT-NHNN DATED JULY 01, 2024 OF GOVERNOR OF STATE BANK OF VIETNAM PRESCRIBING SPECIAL CONTROL OVER CREDIT INSTITUTIONS

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Government's Decree No. 26/2025/ND-CP dated February 24, 2025 prescribing functions, tasks, powers and organizational structure of the State Bank of Vietnam (SBV);

At the request of the Director of the Department of System Safety Supervision of Credit Institutions;

The Governor of the State Bank of Vietnam promulgates a Circular providing amendments to the Circular No. 39/2024/TT-NHNN dated July 01, 2024 of the Governor of State Bank of Vietnam prescribing special control over credit institutions.

Article 1. Amendments to Circular No. 39/2024/TT-NHNN dated July 01, 2024 of Governor of State Bank of Vietnam prescribing special control over credit institutions

1. Article 1 is amended as follows:

“Article 1. Scope

This Circular introduces regulations on authority to make decisions on special control over credit institutions; forms of special control; special control decisions; notification and disclosure of information on special control; special control duration, extension and termination of special control; recording of decrease in charter capital of commercial banks placed under special control and subject to mandatory transfer plans approved by the State Bank of Vietnam (SBV); composition, structure, operating mechanism, tasks and powers of a special control board; responsibilities of relevant authorities, organizations and individuals.

2. Article 7a is added following Article 7 as follows:

“Article 7a. Recording of decrease in charter capital of commercial banks placed under special control and subject to mandatory transfer plans approved by State Bank of Vietnam

1. Within 10 days from the date on which SBV gives approval for the mandatory transfer plan as prescribed in clause 4 Article 179 or clause 4 Article 180 of the Law on Credit Institutions, the commercial bank placed under special control must complete determination and provide the special control board with the consolidated income statement for the accounting period starting from the date of the latest audited financial statements and ending on the date on which SBV gives approval for the mandatory transfer plan in conformity with Vietnam’s accounting standards, accounting policies and relevant regulations of law.

2. Within 20 days from the date on which SBV gives approval for the mandatory transfer plan as prescribed in clause 4 Article 179 or clause 4 Article 180 of the Law on Credit Institutions, the special control board must complete determination and provide SBV (via Credit Institution Management and Supervision Department) with the consolidated income statement of the commercial bank placed under special control for the accounting period prescribed in clause 1 of this Article (including the case where the commercial bank placed under special control fails to complete determination of its consolidated income statement as prescribed in clause 1 of this Article), and request SBV (via Credit Institution Management and Supervision Department) to make a decision to record a decrease in total charter capital of the commercial bank to be transferred under an approved mandatory transfer plan to reduce its corresponding accumulated losses as prescribed in clause 2 Article 183 of the Law on Credit Institutions in case the commercial bank placed under special control is incurring an amount of accumulated losses greater than the sum of the entire amount of its charter capital and reserve funds as recorded in its latest audited financial statements and its consolidated income statement determined by the special control board as prescribed in this clause.

3. Based on the latest audited financial statements and report/request submitted by the special control board as prescribed in clause 2 of this Article, SBV shall include its decision to record a decrease in total charter capital of the commercial bank to be transferred under an approved mandatory transfer plan to reduce its corresponding accumulated losses in the Decision on mandatory transfer as prescribed in clauses 2 and 3 Article 183 of the Law on Credit Institutions. The value of charter capital after decrease shall replace that written in the License for establishment and operation issued by SBV to the commercial bank placed under special control.”

3. Point b and point d clause 3 Article 10 are amended as follows:

a) Point b is amended as follows:

“b) Head of a division or holder of equivalent or higher position at the Credit Institution Management and Supervision Department; SBV Inspectorate;”

b) Point d is amended as follows:

“d) Head of a division or holder of equivalent or higher position at the branch of the Credit Institution Management and Supervision Department; Inspectorate of SBV's branch of province or city where the credit institution placed under special control is headquartered.”

4. Point b clause 4 Article 10 is amended as follows:

“b) Head of a division or holder of equivalent or higher position at the branch of the Credit Institution Management and Supervision Department; Inspectorate of SBV's branch of province or city where the credit institution placed under special control is headquartered.”

Article 2. Addition, replacement and removal of some words to or in Circular No. 39/2024/TT-NHNN dated July 01, 2024 of Governor of State Bank of Vietnam prescribing special control over credit institutions

1. The phrase “,GHI GIẢM VỐN ĐIỀU LỆ” (“, RECORDING OF DECREASE IN CHARTER CAPITAL”) is added following the end of the heading of Chapter II.

2. The phrase “Ngân hàng Nhà nước chi nhánh tỉnh, thành phố trực thuộc Trung ương” (“SBV’s branch of province or city”) is replaced with the phrase “Ngân hàng Nhà nước chi nhánh Khu vực” (“SBV’s regional branch”) in clause 2 Article 3.

3. The phrase “Cơ quan Thanh tra, giám sát ngân hàng” (“SBV Banking Inspection Agency") is replaced with the phrase “Cục Quản lý, giám sát tổ chức tín dụng” (“Credit Institution Management and Supervision Department”) in clause 3 Article 3; points a, b clause 4 Article 4; clause 1 Article 8; clause 1 Article 9; points d, i, k clause 1 and clause 2 Article 11; clause 7 Article 12; heading of Article 14; points b, d clause 1 Article 16; clause 6 Article 17, clause 2 Article 18.

4. The phrase “cấp huyện,” (“district level,”) in point dd clause 3 Article 6 is removed.

5. The phrase “Chánh Văn phòng, Chánh Thanh tra, giám sát ngân hàng,” (“Chief of Office, Head of SBV Banking Inspection Agency,”) in Article 22 is removed.

Article 3. Responsibility for implementation

Heads of units affiliated to SBV, Deposit Insurance of Vietnam, Cooperative Bank of Vietnam, credit institutions placed under special control, and special control boards in charge of such credit institutions placed under special control are responsible for the implementation of this Circular.

Article 4. Effect

This Circular comes into force from June 06, 2025./.