Procedures for granting and renewing commercial bank establishment and operation licenses

Procedures for granting and renewing commercial bank establishment and operation licenses is the process of updating changed information on a credit institution’s license. This process creates opportunities for commercial banks to optimize business operations, meet market needs and comply with new regulations of the State Bank of Vietnam. The following article by Long Phan will provide detailed instructions on the steps, conditions and process for renewing commercial banking licenses.

Principles for granting and renewing commercial bank establishment and operation licenses

Procedures for renewing the License for establishment and operation of commercial banks comply with the principles specified in Article 6 of Circular No. 34/2024/TT-NHNN. Specifically as follows:

• The State Bank does not carry out renewal of activities that commercial banks are not allowed to perform according to the law at the time of renewal.
• The State Bank adjusted the names of permitted activities in accordance with the provisions of the Law on Credit Institutions and Appendix 01, Appendix 02 issued with Circular No. 34/2024/TT-NHNN. The renewed License replaces all Licenses and approval documents (which are an inseparable part of the License) that the State Bank has issued to commercial banks before the time of renewal.
• The State Bank considers and approves commercial banks’ participation in the international payment system according to each international payment system.
• For foreign exchange business activities and provision of foreign exchange services; international payment services; business activities and supply of derivative products on foreign exchange, currency, and other financial assets to domestic and foreign customers; Gold trading activities, the granting of additional activity content to the License shall be carried out in accordance with the State Bank’s own regulations and other relevant laws.
• For the content of activities specified in Clause 25, Article 4, the Form of License to renew the License for establishment and operation of commercial banks (Appendix 01 Circular No. 34/2024/TT-NHNN) is implemented after have the approval of the State Bank; Procedures and issuance of additional activities to the License shall comply with the State Bank’s own regulations and other relevant laws.
• In case a commercial bank requests additional operational content to be added to the License at the same time as renewing the License, the State Bank will consider renewing the License, including the additional content as requested, on the basis that the commercial bank fully meets the documents as prescribed in Article 9 of Circular No. 34/2024/TT-NHNN.

Deadline for license renewal

Pursuant to Article 7 of Circular 34/2024/TT-NHNN. The State Bank has a period of 40 days from the date of receipt of complete and valid documents to renew the License for commercial banks. To ensure the exchange process goes smoothly, commercial banks should prepare documents carefully and fully meet regulatory requirements.

Procedure for granting and renewing commercial bank establishment and operation licenses

Prepared documents

Dossier to request a license renewal is specifically specified in Clause 1, Article 9 of Circular 34/2024/TT-NHNN. Accordingly, commercial banks need to fully prepare the following documents:

• In the application for renewal of the License, the application must clearly state the contents of the activities proposed to be performed;
• List of activities with copies from the current License and other approval documents of the State Bank (if any).

Execution order

Pursuant to Article 7 of Circular 34/2024/TT-NHNN. The process of renewing the commercial bank’s establishment and operation license is carried out in the following order:

Step 1: Prepare and submit application

Commercial banks need to renew their license to prepare documents according to regulations. Documents must be complete, accurate and sent directly or by post to the State Bank.

Step 2: Receive and process documents

The State Bank receives the documents and checks them for completeness and validity. If the documents are incomplete or need to be supplemented, the State Bank will notify the commercial bank.

Step 3: Decide to renew the License

Upon receiving a complete and valid application, the State Bank will issue a decision to renew the License. In case of refusal, the State Bank will respond in writing and clearly state the reason.

Step 4: Announce license changes

Announce changes to the License within 07 (seven) working days from the date the State Bank renews the License on 01 media of the State Bank and 01 printed newspaper for 03 consecutive issues or on 01 Vietnamese electronic newspaper;

Commercial banks must amend and supplement their Charter in accordance with the content of the renewed License

Consulting services and support for granting and renewing licenses for establishment and operation of commercial banks

To ensure that the process of applying for a license to establish and operate a commercial bank goes smoothly and complies with regulations. You can choose a reputable unit to ensure that procedures are carried out according to regulations. With professionalism, Long Phan is ready to advise and support you effectively during the exchange procedure. And the following are Long Phan’s services:

• Consulting on relevant regulations on conditions and procedures for renewing licenses.
• Assist customers in preparing complete and accurate dossiers and necessary documents according to regulations.
• Representing customers with state agencies.
• Monitor application processing progress and update results for customers.
• Consulting and support in implementing notification of license changes
• Consulting on other related issues.

The procedure for renewing the license to establish and operate a commercial bank is a process that requires careful preparation and compliance with legal regulations to ensure the process goes smoothly. If you still have questions about the above issue, please contact Long Phan via hotline 0906735386 for detailed consulting support on procedures for renewing commercial banking licenses.