Proposed new regulations related to special control over credit institutions

Some problems appeared

According to the State Bank of Vietnam, after Decree No. 26/2025/ND-CP stipulating the functions, tasks, powers and organizational structure of the State Bank of Vietnam was issued, related to the implementation of Circular No. 39/2024/TT-NHNN dated July 1, 2024 of the Governor of the State Bank of Vietnam regulating special control over credit institutions (CIs) replacing Circular No. 11/2019/TT-NHNN dated August 2, 2019, the units found that there were problems in determining the title of the Head of the Special Control Board prescribed in Clause 3 and Clause 4, Article 10 of Circular 39/2024/TT-NHNN.

There are currently no regulations on the implementation of procedures for reducing charter capital of commercial banks under special control.

In addition, based on the practical implementation of units under the State Bank of Vietnam in the past time regarding the State Bank of Vietnam's decision to reduce the entire charter capital of commercial banks under special control for which the Government has approved a compulsory transfer plan, Circular 39/2024/TT-NHNN currently does not have regulations on the implementation of the order and procedures for reducing the charter capital of commercial banks under special control when implementing a compulsory transfer plan.

Based on the above bases, the drafting of the circular is necessary to ensure compliance with the provisions of Decree 26/2025/ND-CP, the organizational structure, functions and tasks of a number of units under the State Bank as well as to create a legal basis for units in implementing contents related to special control of credit institutions according to the provisions of the Law on Credit Institutions 2024.

Add regulations to reduce charter capital of commercial banks under special control

Notably, in the draft Circular, the State Bank proposed to add Article 7a: Reducing the charter capital of commercial banks under special control whose compulsory transfer plan is approved by the State Bank.

Accordingly, within 10 days from the date the State Bank approves the compulsory transfer plan as prescribed, the specially controlled commercial bank must complete the determination and submit to the Special Control Board the consolidated business performance results for the accounting period from the time of the most recent audited financial statement to the last day of the month immediately preceding the date the State Bank approves the compulsory transfer plan in accordance with Vietnamese Accounting Standards, Accounting Regime and relevant legal provisions.

Reduce charter capital if the specially controlled commercial bank has accumulated losses greater than 100% of the value of its charter capital.

Within 20 days from the date the State Bank approves the compulsory transfer plan as prescribed, the Special Control Board shall complete the determination and report to the State Bank (through the Department of Credit Institution Management and Supervision) the consolidated business performance results of the specially controlled commercial bank for the accounting period specified in Clause 1 of this Article (even in cases where the specially controlled commercial bank does not complete the determination of the consolidated business performance results).

At the same time, the Special Control Board requests the State Bank (through the Department of Credit Institution Management and Supervision) to decide to reduce the entire charter capital of the compulsory transferred commercial bank to reduce the corresponding accumulated losses according to the provisions of Clause 2, Article 183 of the Law on Credit Institutions. This occurs in the case where the specially controlled commercial bank has accumulated losses greater than 100% of the value of the charter capital and reserve funds recorded in the most recent audited financial statements and according to the consolidated business performance results of the specially controlled commercial bank determined by the Special Control Board according to the provisions of this Clause.

Based on the latest audited financial statements and the report and proposal of the Special Control Board, the State Bank decides to reduce the entire charter capital of the compulsory transferred commercial bank to reduce the corresponding accumulated losses in the Decision on compulsory transfer as prescribed in Clause 2 and Clause 3, Article 183 of the Law on Credit Institutions.

Source: https://thoibaonganhang.vn/de-xuat-quy-dinh-moi-lien-quan-kiem-soat-dac-biet-doi-voi-to-chuc-tin-dung-163044.html