The State Bank officially issued a Circular on the organization and operation of the PGDBD.

Recently, the State Bank of Vietnam (SBV) issued Circular No. 11/2023 dated August 31, 2023 amending and supplementing a number of articles of Circular 43/2015 dated December 31, 2015 regulating the organization and operation of postal transaction offices under Lien Viet Post Joint Stock Commercial Bank (LPBank - HoSE: LPB).

The Circular takes effect from October 15, 2023. Accordingly, the Governor of the State Bank authorizes the Director of the State Bank branch where the post office transaction office is located to approve or disapprove the termination of the operation of the post office transaction office in the area.

At the same time, confirm that the post office changing location meets the conditions for operation at the new location. Mandatory termination of post office operation in the area.

Post office transaction offices are not allowed to receive deposits after VNPOST divests capital to below 5% of charter capital.

In addition, the State Bank also added Clause 3 and Clause 4, Article 7. Specifically, after 7 working days from the date Vietnam Post Corporation divests capital below 5% of LPBank's charter capital, post office transaction offices are not allowed to receive savings deposits.

Processing of savings deposits Previously received from the post office when not performing the savings deposit receiving activity is implemented as follows: For savings deposits that have not yet reached maturity, the post office continues to implement according to the agreed contents with the customer; For savings deposits that are due for repayment, the post office must have measures to pay all savings deposits of the customer.

In case of failure to pay all due savings deposits, LPBank will receive and handle them according to internal regulations, legal regulations on savings deposits and terminate the operation of the post office transaction office.

In addition, the Circular also stipulates that after the time when Vietnam Post Corporation divests capital to below 5% of LPBank's charter capital, no later than the 15th of each month, LPBank shall report to the State Bank branch where the post office transaction office is located on the situation of handling savings deposits of each post office transaction office operating in the province or centrally-run city according to the form in Appendix No. 3 issued with this Circular.

Finance - Banking - The State Bank officially issued a Circular on the organization and operation of PGDBĐ — After 7 working days from the date Vietnam Post Corporation divests capital to below 5% of LPBank's charter capital, post office transaction offices are not allowed to receive savings deposits.

In February 2023, the State Bank of Vietnam approved LPBank's (LPB) proposal to transfer more than 140.5 million LPB shares owned by VNPost.

The State Bank of Vietnam requires LPB to coordinate with VNPost to transfer shares in accordance with legal regulations, develop a plan and roadmap to handle the post office transaction office system after VNPost transfers shares, and have a plan to manage LPB's network units (including the post office transaction office system), ensuring LPB operates safely, effectively, and in compliance with legal regulations.

This approval document is valid for 3 months from the date of signing, however, to date this divestment has not been successful. It is known that the auction of the above shares is scheduled to be held on April 21, 2023, but by the end of the registration and deposit period (3:30 p.m. on April 14, 2023), no investors have registered to buy shares of the company.

According to data from VNPost, by the end of 2022, the balance of postal savings deposits reached 79,770 billion VND and by the end of February this year, the figure was over 82,500 billion VND.

The State Bank said that in 2011, when VNPost contributed VND810 billion and became a shareholder of LPBank, the total number of post offices providing postal savings services was 798 and converted into post office transaction offices of the bank. As of June 20, 2022, the total number of post office transaction offices was 585.

The management agency assessed that the personnel at the post office transaction offices were all VNPost personnel, most of whom had no professional expertise, were not trained in banking, had ethical risks, and performed both postal and banking operations .

Source