Buzz
The Credit Institutions Law was first issued in 1997, undergoing the development process of the economy and the requirements of international economic integration. In the XIV National Assembly, the Law amending and supplementing some articles of the Credit Institutions Law in 2017 was passed.
The 2010 Credit Institutions Law amended and supplemented in 2017 and the guiding decree on credit institutions law
1. Overview of the Credit Institutions Law.
2. Key Contents of the Credit Institutions Law.
3. The necessity of issuing the Credit Institutions Law.
* Download the latest Credit Institutions Law HERE
1. Overview of the Credit Institutions Law
- The current applicable Credit Institutions Law is the 2010 Credit Institutions Law, amended and supplemented by the Law amending the Credit Institutions Law in 2017, passed by the National Assembly on November 20, 2017.
- The 2010 Credit Institutions Law comprises 10 Chapters with 163 Articles. It specifically outlines:
+ General provisions
+ Regulations on organization, management, and operation of credit institutions
+ Regulations on the activities of credit institutions
+ Regulations regarding the representative offices of foreign credit institutions, and other foreign entities engaged in banking activities
+ Limitations to ensure safety in the operations of credit institutions
+ Financial matters, accounting, reporting.
+ Special control, restructuring, bankruptcy, dissolution, and liquidation of credit institutions
+ Restructuring, dissolution, bankruptcy, liquidation, asset freezing, asset seizure
+ State regulatory authorities overseeing credit institutions
+ Enforcement provisions
=> It can be said that the Credit Institutions Law serves as a legal corridor for organizing and operating credit institutions.
- Currently, the Circulars and Decrees guiding the Credit Institutions Law include:
+ Decree 40/2012/ND-CP on currency issuance; preservation, transportation of valuable assets and documents in the State Bank system, credit institutions, and foreign bank branches;
+ Decree 01/2014/ND-CP on foreign investors purchasing shares of Vietnamese credit institutions;
+ Decree 93/2017/ND-CP on financial regulations for credit institutions...;
+ Circular 11/2021/TT-NHNN stipulating asset classification, provisioning levels, methods for provisioning against risks...;
+ Circular 08/2021/TT-NHNN regulating special lending for credit institutions under special supervision;
+ ......
Latest update on the content of the Credit Institutions Law No. 47/2010/QH12
2. Key Contents of the Credit Institutions Law
- Firstly, the Credit Institutions Law has provided an overview of the scope of application, which includes: credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaging in banking activities; organizations, individuals related to the establishment, organization, and supervision of the aforementioned institutions.
- The Credit Institutions Law has clearly regulated the establishment, organization, supervision, restructuring, dissolution of credit institutions; establishment, organization, operation of foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaging in banking activities.
- In Chapter II of the Law, it records the conditions, authorities issuing licenses for the establishment, operation of credit institutions, legal capital, term, license fees, use of licenses, cases of license revocation.
However, in the Law amending and supplementing some articles of the Credit Institutions Law 2017, there are limitations on capital contribution, share purchase: specifically, the level of capital contribution, share purchase does not include the level of capital contribution, share purchase of fund management companies.
- Regarding the management, organization, and administration of credit institutions: they are established based on the Enterprise Law, but with higher principles and requirements compared to ordinary enterprises.
- Concerning the operations of credit institutions: they are categorized according to each type of credit activity and must be carried out in accordance with the granted License.
- About the representative offices of foreign credit institutions, other foreign organizations engaging in banking activities: regulations are also in place to ensure credit activities for foreign entities.
- Additionally, in the Credit Institutions Law, specific provisions are made regarding limitations to ensure the operations of credit institutions; special control over these institutions and the role of state agencies in managing credit institutions.
3. The necessity of issuing the Credit Institutions Law
The enactment of the Credit Institutions Law is highly necessary and crucial because:
- Establishing a legal framework for the organizational activities of credit institutions
- Enhancing the autonomy and accountability of credit institutions in business operations
- The issuance, amendment, and supplementation of the Credit Institutions Law throughout different periods aim at administrative reform in the financial-banking sector.
- Furthermore, it also ensures flexibility and diversity in the business activities of credit institutions.
- Meeting the requirements in the process of international economic integration and establishing a solid foundation for building a modern system of credit institutions while ensuring the consistency of this law with other relevant laws.
According to Mytour's insights on the Law on Credit Institutions, it's evident how crucial it is to enact, amend, and supplement laws in the financial and banking sector. However, to ensure consistency and greater flexibility, it's imperative to incorporate opinions and exchanges for further refinement during implementation.
Readers can explore additional legal documents within our national legal system such as: Civil Procedure Code, Securities Law, Public Reception Law, Civil Servants Law.
