Consulting on procedures for renewing the bank’s operating license

Article overview

Renewal of the bank’s operating license is an important procedure, ensuring the bank maintains operations in accordance with the law and updates changes related to organizational structure, charter capital or scope of operations. Renewing the license not only helps the bank ensure full compliance with regulations, but also creates conditions for the bank to improve its reputation, expand the scope of services and increase trust from customers.

Renewal of the bank's operating license
Renewal of the bank’s operating license

Cases where a bank’s operating license needs to be renewed

The renewal of the bank’s operating license is carried out in a number of specific cases. According to the provisions of Circular 34/2024/TT-NHNN, the bank’s operating license can be renewed in the following cases:

  • When a bank changes its name and head office address.
  • When there is a change in charter capital or allocated capital.
  • When the bank expands or narrows the scope of business activities.
  • When there is a merger or consolidation between credit institutions.
  • When the old License is lost, torn, burned or destroyed.

In addition, the bank also needs to renew the License when requested by a competent state management agency. Understanding these cases helps credit institutions be proactive in their operations and comply with legal regulations.

Competent authority to renew the bank’s operating license

The State Bank of Vietnam is the only agency authorized to renew operating licenses for credit institutions. Specifically:

  • The Governor of the State Bank is the person with the authority to sign the decision to renew operating licenses for commercial banks and foreign bank branches.
  • The Banking Inspection and Supervision Agency under the State Bank is responsible for evaluating the application for license renewal.
  • The State Bank’s Legal Department is responsible for providing legal advice during the process of renewing the License.

The process of renewing the License is carried out at the headquarters of the State Bank in Hanoi. Credit institutions need to note this location when submitting applications and monitoring processing progress.

Reference content: Article 3 of Circular 34/2024/TT-NHNN

Competent state agencies receive renewal applications
Competent state agencies receive renewal applications

Procedures for applying for renewal of a bank’s operating license

Profile components

In case of license renewal:

  • 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).

In case of additional activity content to the License:

  • Application for additional activity content to the License;
  • Resolution of the Board of Directors (Board of Members) of the commercial bank unanimously approving the request to add operational content to the License; Parent bank’s document agreeing to request additional operational content to the License for foreign bank branches;
  • Documents proving that meeting the conditions for activities expected to be carried out in Vietnam are activities in which the owner, a foreign credit institution owns 50% of the charter capital of a bank with 100% foreign capital (for banks with 100% foreign capital), parent banks (for foreign bank branches) are allowed to do so in the country where the owner, foreign credit institution or parent bank is headquartered;
  • Particularly in the case of requesting to supplement the License with business activities, supply of interest rate derivative products, supply of commodity price derivative products, and securities depository activities, in addition to the prescribed documents specified in Points a, b and c, Clause 2, Article 9, Circular 34/2024/TT-NHNN, commercial banks and foreign bank branches need to have internal processes, including management measures. Risk management appropriate to each content of activity proposed to be added to the License;
  • In the case of requesting an additional license to operate the international payment system, in addition to the documents specified in Points a, b and c, Clause 2 of Circular 34/24/TT-NHNN, commercial banks, foreign bank branches must supplement the documents specified in Point dd, Clause 2, Article 9, Circular 34/2024/TT-NHNN.

Reference content: Article 9 of Circular 34/2024/TT-NHNN.

Execution order

The process of renewing the bank’s operating license includes the following steps:

Step 1: The bank prepares complete documents according to regulations.

Step 2: Submit the application directly or by mail to the State Bank.

Step 3: Within 40 working days, the receiving agency notifies the bank in writing about accepting the dossier or requesting to supplement and complete the dossier (if necessary). The State Bank shall renew the License or issue additional operational content to the License or issue additional operational content to the License at the same time as renewing the License upon request to commercial banks and branches foreign bank branches. In case of refusal, the State Bank shall respond in writing and clearly state the reason.

Step 4: Announce changes to the License within 07 (seven) working days from the date the State Bank renews the License or adds operational content to the License on 01 media of the State Bank. State Bank and 01 printed newspaper in 03 consecutive issues or on 01 Vietnamese electronic newspaper.

Reference content: Article 7 Circular 34/2024/TT-NHNN.

Do I need to pay a fee to apply for a bank operating license?

Commercial banks and foreign bank branches that are granted License renewal must pay the License renewal fee at the State Bank (Transaction Department) or State Bank branches in provinces and centrally run cities ( hereinafter referred to as the State Bank branch) where the headquarters is located or pay online on the National Public Service Portal within 15 days from the date of issuance of the License.

The fee for renewing a License is in accordance with the law on fees and charges.

Reference content: Article 4, Circular 34/2024/TT-NHNN.

The time limit for renewing the bank’s operating license

According to the provisions of Circular 34/2024/TT-NHNN, the deadline for resolving the renewal of the bank’s operating license is as follows:

  • Total time limit: 40 working days from the date of receipt of complete and valid documents.
  • The time limit for dossier appraisal: 30 working days.
  • The time limit for decision: 10 working days after receiving appraisal results.

During the appraisal process, the State Bank may request the bank to supplement and clarify information in the dossier. The time to supplement and complete the dossier is not included in the processing time limit mentioned above.

Banks need to pay attention to monitoring the progress of processing documents and proactively contact the receiving agency if they have not received the results after the specified deadline.

Reference content: Article 7 Circular 34/2024/TT-NHNN.

The time limit for processing applications for renewal of the Bank's operating license
The time limit for processing applications for renewal of the bank’s operating license

Consulting services and guidance on applying for renewal of the bank’s operating license in Long Phan

With Long Phan’s team of experts with many years of experience, we are committed to supporting customers in completing License renewal procedures quickly, effectively and in accordance with the law.

Services we provide include:

  • Consulting on cases where the License needs to be renewed according to the provisions of law.
  • Instructions for preparing complete and accurate documents for the renewal of banking operating licenses.
  • Draft the necessary documents in the file according to the provisions of the law.
  • Representatives submit documents and monitor the progress of the authorities’ resolution, promptly informing customers about the status of documents.
  • Representing customers to explain and supplement documents as requested by competent authorities.

Customers need to follow the correct process and prepare complete documents for the exchange to take place smoothly. For detailed advice on procedures for renewing banking licenses, please contact Long Phan via Hotline: 0906735386. We are ready to help customers complete procedures quickly and effectively.