Reorganization of people's credit funds must have a feasible reorganization plan, ensuring the rights and obligations of related parties, developed and approved according to regulations.
Location and activities of people's credit funds after reorganization
According to the Circular, after reorganization, the people's credit fund is allowed to carry out the activities of the reorganized people's credit fund if it meets all the operating conditions prescribed by law.
The operating area of a people's credit fund after reorganization, except for the case of merger or consolidation of a people's credit fund under special control, is implemented as follows:
a- The area of operation of the merged people's credit fund is a commune-level administrative unit (hereinafter referred to as commune) within the area of operation of the merged people's credit fund. The merged people's credit funds operating in different communes must coordinate to develop a plan and roadmap to ensure operations in a commune in the Reorganization Plan. In this case, the merged people's credit fund is not allowed to admit new members, make new loans, or receive new deposits in communes other than the commune where its head office is located.
According to the provisions of the Law on Credit Institutions No. 32/2024/QH15: People's credit funds are credit institutions voluntarily established by legal entities, individuals, and households in the form of cooperatives to carry out one or several banking activities according to the provisions of this Law with the main goal of supporting each other in developing production, business and life.
b- The operating area of a newly established people's credit fund after the division or separation of the people's credit fund is a commune within the operating area of the divided or separated people's credit fund and must ensure that it does not overlap with the operating area of other people's credit funds.
c- The area of operation of the people's credit fund receiving the merger after the merger of the people's credit fund includes the current area of operation of the people's credit fund receiving the merger. The people's credit fund receiving the merger and the people's credit fund being merged must coordinate to develop a plan and roadmap to ensure the termination of operations in the communes within the area of operation of the people's credit fund being merged in the Reorganization Plan. In this case, the people's credit fund receiving the merger is not allowed to admit new members, make new loans, or accept new deposits in the communes that must terminate operations.
d- The area of operation of the separated people's credit fund must not exceed the area of operation before the separation of the people's credit fund and must not overlap with the area of operation of other people's credit funds. In case the area of operation of the separated people's credit fund is in more than one commune, it must be adjacent communes and will only be approved if the separated people's credit fund meets the conditions for inter-commune operation according to the regulations of the Governor of the State Bank on people's credit funds.
The area of operation of a people's credit fund after merger or consolidation with a specially controlled people's credit fund shall be implemented according to the plan for merger or consolidation of a specially controlled people's credit fund approved by the State Bank of the Region, and must be a commune or adjacent communes (if any) and not exceed the area of operation of the people's credit funds before the merger or consolidation.
Conditions for reorganization of people's credit funds
The Circular clearly stipulates the conditions for reorganizing people's credit funds:
1 - There is a feasible reorganization plan that ensures the rights and obligations of the relevant parties, developed and approved according to regulations.
2- A People's Credit Fund that undergoes reorganization must have its financial statements for the preceding year audited by an independent auditing organization with no unqualified opinions.
3- After reorganization, the People's Credit Fund must ensure compliance with legal provisions on capital contribution ratio of members; organizational and management structure; standards and conditions for members of the Board of Directors, members of the Supervisory Board, Director, Deputy Director, Chief Accountant, Branch Director (Transaction Office); ratio of remaining value of fixed assets compared to charter capital and reserve fund to supplement charter capital; limits and ratios to ensure safety in operations and ensure the actual value of charter capital is at least equal to the legal capital level.
4- In the case of dividing or separating a people's credit fund, in addition to meeting the conditions specified in Clauses 1, 2 and 3 above, the people's credit fund being divided or separated must meet the following conditions:
Having total assets of over VND 500 billion at the time of request or being in a case where the operating area must be handled in communes not adjacent to the commune where the head office is located according to the provisions of Circular No. 29/2024/TT-NHNN dated June 28, 2024 of the Governor of the State Bank regulating people's credit funds and amendments and supplements (if any).
Newly established people's credit funds have total assets of at least 100 billion VND.
The Circular takes effect from August 15, 2025.
Minh Hien
Source: https://baochinhphu.vn/quy-dinh-ve-to-chuc-lai-quy-tin-dung-nhan-dan-102250630163828087.htm
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