The State Bank of Vietnam (SBV) is seeking comments on the Draft Circular on Regulations on commercial banks with shareholders, shareholders and related persons owning shares exceeding the ratio prescribed in Article 55 of the Law on Credit Institutions No. 47/2010/QH12, which has been amended and supplemented by a number of articles under Law No. 17/2017/QH14, to develop and implement a roadmap to ensure compliance with the provisions of the Law on Credit Institutions No. 32/2024/QH15.
Accordingly, commercial banks (CBs) must coordinate with shareholders, shareholders and related parties owning shares exceeding the ratio to develop and implement a compliance roadmap in accordance with the restructuring plan or approved by the competent authority of shareholders and related parties to ensure compliance with the provisions of the Law on Credit Institutions (CIs).
Accordingly, the bank will have to review the list of shareholders, shareholders and related persons owning shares exceeding the ratio. The deadline for closing the data to determine the list is June 30, 2024.
Notably, from the effective date of this Circular, credit institutions are not allowed to grant credit or grant new credit (in case credit has been granted) to shareholders, shareholders in related shareholder groups who own shares exceeding the limit or related persons of such shareholders.
In addition, shareholders and related groups of shareholders who currently own shares exceeding the ratio will not receive cash dividends (if any) for the number of shares held exceeding the limit until they ensure compliance with the prescribed share ownership limit.
The draft states that during the implementation of the compliance roadmap, if necessary, the bank will coordinate with relevant organizations and individuals to adjust the applicable measures and implementation roadmap, but must ensure the compliance roadmap deadline.
Shareholders, shareholders and related persons at a commercial bank owning shares exceeding the ratio are not allowed to increase the number of shares held at the bank in any form until ensuring compliance with the prescribed share ownership limit, except in the case of receiving bonus shares or dividends in shares.
In case commercial banks, shareholders, shareholders and related persons do not comply with the compliance roadmap, depending on the nature and level, the State Bank will consider and apply handling measures according to the provisions of law.
The draft Circular states that the compliance roadmap of commercial banks must have at least the following contents: list of shareholders, shareholders and related persons, including full information:
Organization name, business registration certificate number or equivalent legal document, date of issue, place of issue, business registration number, head office address.
Information on the quantity and ratio of shares owned in the charter capital that the organization owns at a commercial bank (including authorized shares or shares entrusted to other organizations or individuals); name of the organization or individual receiving authorization or entrustment and relationship with that organization.
Information about the representative of the capital contribution, related persons of the shareholder, shareholders in the related shareholder group.
Applicable measures (shareholders reduce their shareholding ratio at that commercial bank or other measures) and implementation timelines to comply with the provisions of the Law on Credit Institutions.
Commitment of commercial banks to coordinate and urge shareholders and related groups of shareholders owning shares exceeding the ratio to remedy according to the above roadmap.
Source: https://laodong.vn/kinh-doanh/khong-duoc-cap-tin-dung-cho-co-dong-vuot-tran-so-huu-1389317.ldo
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