Apply for a License to establish and operate a Joint Stock Commercial Bank

Article overview

Granting License for establishment and operation of a Joint Stock Commercial Bank opens up new development opportunities for Vietnam’s finance and banking industry. This process creates a solid foundation for the birth of new banks. Follow the following article by Long Phan to get detailed information about the necessary requirements, procedures and processes, helping businesses get closer to the goal of establishing a joint stock commercial bank.

Process for granting a license to establish and operate a joint stock commercial bank
Process for granting a license to establish and operate a joint stock commercial bank

Conditions for issuance of License for establishment and operation of joint stock commercial banks

Pursuant to the provisions in Subsection 1, Section A, Part 2 of Administrative Procedures issued with Decision 2183/QD-NHNN in 2023, conditions for being granted an Establishment and Operation License of a Joint Stock Commercial Bank include:

  • Have charter capital, allocated capital at least equal to the legal capital level;
  • Management personnel meet Article 50 of the Law on credit institutions;
  • The Charter complies with the provisions of the Law on Credit Institutions and other relevant legal regulations;
  • Have a feasible establishment project and business plan that does not affect the safety and stability of the credit institution system; Do not create a monopoly or restrict competition or unfair competition in the credit institution system
  • Conditions for founding shareholders:
  • Not a founding shareholder, owner, founding member, or strategic shareholder of another credit institution;
  • Founding shareholders must jointly own at least 50% of the charter capital when establishing a joint stock commercial bank, in which founding shareholders who are legal entities must jointly own at least 50% of the total shares. of the founding shareholders

In case the shareholder is an organization, it must meet the following conditions:

  • Have total assets of at least 100,000 billion VND, fully comply with regulations on risk management and full provisioning according to regulations at the time of submitting the application for License and up to the time of License issuance. ;
  • Do not violate the ratios to ensure safety in banking operations according to regulations of the State Bank in the year immediately preceding the year of submitting the application for License and up to the time of License issuance;
  • Comply with conditions and limits on purchasing and holding shares of credit institutions as prescribed in Clause 6, Article 103 of the Law on Credit Institutions;
  • Ensure the minimum capital adequacy ratio after contributing capital to establish a joint stock commercial bank.

Competent Authority License for establishment and operation of Joint Stock Commercial Bank

According to the provisions in Subsection 1, Section A, Part 2 of Administrative Procedures issued with Decision 2183/QD-NHNN in 2023, the State Bank will be the competent agency to issue the Bank’s establishment and operation license. share trade.

Procedures for applying for a license to establish and operate a joint stock commercial bank

Prepared documents

Pursuant to subsection 1, Section A, Part 2 of Administrative Procedures issued with Decision 2183/QD-NHNN in 2023, documents that need to be prepared in the process of establishing a Joint Stock Commercial Bank include:

  • Application for a License to establish and operate a commercial bank signed by founding shareholders, owners, and founding members according to the prescribed form in Appendix 02a of Circular No. 13/2023/TT-NHNN.
  • Draft Charter.
  • Project to establish a commercial bank
  • Documents proving the capacity of the expected management, control and operating apparatus
  • Minutes of the meeting of founding shareholders, founding members or documents of the owner on the selection of the Preparatory Committee, Head of the Preparatory Committee, approval of the draft Charter, project to establish the bank and list of Expected management, control, and operating titles
  • List of founding shareholders and expected list of capital contributing shareholders according to the form specified in Appendix 04 of Circular No. 13/2023/TT-NHNN.
  • Profile of shareholders contributing capital to establish

Customers can refer to detailed documents in subsection 1, Section A, Part 2, Administrative procedures issued with Decision 2183/QD-NHNN in 2023.

Documents need to be prepared according to regulations
Documents need to be prepared according to regulations

Execution order

Pursuant to subsection 1, Section A, Part 2, Administrative procedures issued together with Decision 2183/QD-NHNN in 2023, the implementation order is as follows:

  • Step 1: The Preparatory Committee sends documents to the State Bank.
  • Step 2: Within 60 days from the date of receiving the license application, the State Bank confirms receipt of all valid documents or additional requests.
  • Step 3: Within 90 days of receiving all valid documents, the State Bank shall issue a written approval in principle for establishing a commercial bank. In case of disapproval, the State Bank will send a written response to the Preparatory Committee, clearly stating the reasons for disapproval.
  • Step 4: Within 60 days from the date of receiving the document approving the principles of establishing a commercial bank, the Preparatory Committee supplements the documents.
  • Step 5: Within 2 days from the date of receiving all additional documents, the State Bank confirms receipt of all additional documents.
  • Step 6: Within 30 days from receiving complete additional documents, the State Bank will grant or refuse the License. In case the License is not granted, the State Bank shall send a written response to the Preparatory Committee, clearly stating the reasons for not granting the License.

How to do it:

  1. Submit directly at the One-Stop Department, Head Office of the State Bank of Vietnam.
  2. Or send via postal service.
Steps to apply for a License
Steps to apply for a License

Consulting and support services for applying for a Joint Stock Commercial Bank Establishment and Operation License

Using consulting and support services to apply for a Joint Stock Commercial Bank Establishment and Operation License helps customers save time and effort in carrying out administrative procedures related to bank establishment. . With his experience, Long Phan will help you shorten the time and effort to carry out these procedures. Services at Long Phan include:

  • Consulting on conditions, processes and procedures for establishing a bank.
  • Support in preparing documents to apply for a Joint Stock Commercial Bank Establishment and Operation License.
  • Consulting, support in preparing necessary documents and guidance on additional documents during the license application process.
  • Consulting and supporting the development of projects to establish commercial banks
  • Consulting on compliance with relevant legal regulations after granting the License to establish and operate a Joint Stock Commercial Bank.
  • Representing customers to submit applications and work with state agencies.
  • Track progress and return results to customers

Applying for a license to establish and operate a joint stock commercial bank needs to prepare all types of documents and comply with the conditions and order according to the law to ensure the license application process takes place. favorable. For detailed support, customers can contact Long Phan via hotline 0906735386 for direct advice on procedures and licensing application processes.