Thông tư 09/2010/TT-NHNN

CIRCULAR

PROVIDING FOR THE LICENSING OF ESTABLISHMENT AND OPERATION OF JOINT-STOCK COMMERCIAL BANKS

Pursuant to the 1997 Law on the State Bank of Vietnam and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the 1997 Law on Credit Institutions and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the 2005 Enterprise Law;
Pursuant to the Government's Decree No. 96/ 2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Government's Decree No. 59/ 2009/ND-CPofJuly 16, 2009, providing for the
organization and operation of commercial banks;
At the proposal of the director of the Banking Inspection and Supervision Agency,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides for the licensing of establishment and operation of joint-stock commercial banks (referred to as banks for short).

Article 2. Subjects of application

1. Banks defined in Article 1 of this Regulation.

2. Organizations and individuals involved in
the licensing.

Article 3. Licensing competence

The Governor of the State Bank of Vietnam shall decide on the licensing under this Circular and relevant laws.

Article 4. Interpretation of terms

In this Regulation, the terms below are construed as follows:

1. License means the license for the establishment and operation of a commercial bank.

2. Bank establishment-preparation board (referred to as preparation board for short) is an organization whose members are elected by founding shareholders to represent them in performing jobs involved in the licensing application. The preparation board has at least 5 members, including its head.

3. First meeting of the Shareholders General Meeting means a meeting of founding shareholders and other shareholders who contribute capital to establish a bank, which aims to approve the bank's organization and operation charter and establishment scheme, elect the Board of Directors and the Control Board of the first term, and decide on other issues related to the establishment of the bank.

4. Shareholder jointly establishing a bank (referred to as shareholder for short) means an organization or individual owning at least one outstanding share of a bank at the time of establishment.

5. Founding shareholder means a shareholder participating in the elaboration and approval of and signing the first organization and operation charter of a bank.

6. Preferred voting share means a share with more votes compared to a common share. The number of votes represented by a preferred voting share is specified in the banks charter.

7. Enterprise manager means a person specified in Clause 13. Article 4 of the 2005 Enterprise Law.

8. Attached unit of a bank means its transaction bureau, branch, representative office, affiliate company and non-business unit.

Chapter II

LICENSING CONDITIONS. PROCEDURES AND DOSSIERS

Article 5. Licensing conditions 1. Charter capital

a/ Charter capital is at least equal to the legal capital level prescribed by law at the time of establishment;

b/ Charter capital is contributed in Vietnam dons::

c/ Sources of capital contributed to establish a bank:

(i) Organizations or individuals may not use money entrusted by or borrowed from other organizations or individuals for capital contribution and shall take full responsibility for the lawfulness of the sources of contributed capital;

(ii) Capital contributed by organizations to establish a bank must meet the following conditions:

- For organizations licensed to operate in the banking, securities or insurance sector: They shall contribute capital under current regulations;

- For other organizations: Their equity capital minus long-term investments funded with equity capital and short-term assets minus short-term debts must be at least equal to the committed amount of contributed capital (the method of calculation is specified in Appendix 6 to this Circular - not printed herein);

- For enterprises conducting business lines subject to requirements on legal capital: The amount of equity capital minus the legal capital prescribed by law must be at least equal to the committed amount of contributed capital.

2. Shareholders

a/ Shareholders may be organizations set up under Vietnamese law and individuals bearing Vietnamese nationality other than prohibited ones defined in Clause 2. Article 13 of the 2005 Enterprise Law;

b/ There must be at least 100 shareholders contributing capital to establish a bank, including at least 3 founding institutional shareholders that have the legal person status and meet all the conditions specified at Point b. Clause 3 of this Article;

c/ Shareholders are financially capable of contributing capital to establish a bank. The to be-contributed money amount must be deposited in an account opened by the preparation board at a Vietnamese commercial bank and maintained there from the time the Slate Bank of Vietnam grants a written in-principle approval for the establishment of the bank till the time of obtaining a license. During this period, organizations and individuals may not use this money amount in any form;

d/ An individual or organization and his/her/ its affiliated persons may contribute capital to establish only one bank and may not contribute capital to establish a bank if:

(i) That individual owns or he/she and his/her affiliated persons own major shares of a bank;

(ii) That organization owns or it and its affiliated persons jointly own 10% or more of the charier capital of a bank.

e/ An institutional shareholder has operated for at least 3 years and earned profits for 3 consecutive years preceding the year of application for the establishment of a bank.

f/ The contribution of capital to establish a bank by a shareholder which is a state enterprise must be approved in writing by the Prime Minister.

3. Founding shareholders

a/ For individuals:

(i) Meeting the conditions specified at Points a,. c and d, Clause 2 of this Article;

(ii) Neither being examined for penal liability nor having criminal records;

(iii) Being the manager of an enterprise which has earned profits for at least 3 consecutive years preceding the year of application for the establishment of a bank; or possessing a university or post-graduate degree in economics or law;

(iv) Having committed to financially supporting the bank to address capital or liquidity difficulties:

b/ For organizations:

(i) Meeting the conditions specified at Points a,. c. d and f. Clause 2 of this Article;

(ii) Having operated for at least 5 years;

(iii) Enterprises (other than a commercial bank) must satisfy the following conditions:

- Having an equity capital of at least VND 500 billion in 5 consecutive years preceding the year of application for the establishment of a bank;

- Having earned profits for 3 consecutive years preceding the year of application for the establishment of a bank:

(iv) Commercial banks must satisfy the following conditions:

-Having a total asset value of at least VND 50,000 billion;

- Having a ratio of non-performing loans to total outstanding loans below 2% at the time of application for capital contribution to establish a bank;

- Not violating the State Bank's regulations on safety ratios in banking operations from the year preceding the year of application for establishment of a bank till the time of obtaining a license;

- Having earned profits for 5 consecutive years preceding the year of application for the establishment of a bank.

(v) Having committed to financially supporting the bank to address capital or liquidity difficulties.

c/ Founding shareholders must jointly hold at least 50% of charter capital of a bank upon its establishment, of which founding institutional shareholders must jointly hold at least 50% of total shares of founding shareholders.

4. The organization and operation charter of a bank must comply with current law.

5. A scheme on the establishment of a bank must have the following principal contents:

a/ The necessity to establish the bank;

b/The name of the bank and expected location of its head office, its operation duration, charter capital upon its establishment and details of its operation:

c/ The financial capacity of shareholders; d/The organizational structure and personnel;

(i) The diagram of the projected organization and personnel of the bank;

(ii) The capacity of the projected administration, control and executive apparatuses, including:

- The Board of Directors: Chairman, members, independent members, and heads of its committees;

- The Control Board: Head, members and full-time members;

- Key positions: Director General. Deputy Directors General. Chief Accountant, directors of attached units and other key positions in units under the bank, which are to be set up in the first year of its establishment.

c/ The risk control capacity: Risks which must arise in the course of operation (credit risks, operation risks or market risks) and measures to prevent and control these risks.

f/ Information technology:

(i) A plan on financial investment in information technology:

(ii) The information technology application ability, clearly stating the time of investment in information technology; types of to-be-applied technology: expected personnel and their capabilities of applying information technology: assurance of the integration and connection between the bank's information technology system with the State Bank's administration system so as to provide information at the State Bank's request.

g/ The possibility for the bank to operate stably and develop in the market:

(i) Analysis and assessment of the banking market, clearly slating the actual situation, challenges and prospects;

(ii) The ability to participate and compete in the market, proving its advantages when participating in the market;

(iii) The bank's strategy for development and expansion of its operation network, provision and development of banking services (clearly explaining services to be provided, groups and number of its targeted customers);

h/ The internal inspection, control and audit system:

(i) Principles on the operation of the internal inspection, control and audit system;

(ii) A list of principal internal regulations on the organization and operation of the bank (including at least regulations on the organization and operation of the Board of Directors, the Control Board and executive officers: regulations on the management of the bank's risks: regulations on the operation of the internal inspection, control and audit system: regulations on the management of credit and debit assets; regulations on the organization and operation of the Transaction Bureau, branches and other attached units of the bank; and regulations on debt classification and deduction for setting up of risk control provisions):

(iii) The operational process of the internal audit system: the head of the internal audit section.

i/ The business plan for the first 3 years, including at least a balance sheet, a business report, minimum capital safely indicators, indicators of operation efficiency and explanations on the bank's capacity to implement the plan in each year.

Article 6. Dossier of application for in -principle approval of the establishment of a bank

1. An application for the establishment of a bank, committing to satisfy the conditions specified in Article 5 of this Circular and requesting in-principle approval of the establishment of the bank;

2. The draft organization and operation charter of the bank;

3. The draft scheme on the establishment of the bank with contents specified in Clause 5. Article 5 of this Circular;

4. A list of founding shareholders and list of projected non-founding shareholders, with the following principal contents:

a/ Name and location of the head office: establishment license or business registration certificate, for institutional shareholders:

b/ Full name; permanent residence address: nationality; serial number, date and place of issue of identity card or passport, or personal identification paper, for individuals and representatives of contributed capital of institutional shareholders;

c/ Amount and value of contributed capital: number and type of shares, share holding rate and corresponding capital contribution duration of founding shareholders.

d/ The list of founding shareholders may not be modified after obtaining the written in-principle approval of the establishment of the bank, except cases in which a founding shareholder changes his/her/its share holding rate. The change of share holding rates must be approved by the Shareholders" General Meeting.

5. Dossiers of shareholders

a/ Dossier of an individual shareholder

(i) An application for share purchase, made according to the form set by the State Bank for individuals (Appendix 4 to this Circular – not printed herein):

(ii) A list of his/her affiliated persons, made according to the form set by the State Bank (Appendix 5 to this Circular - not printed herein):

(iii) In addition to the above papers, a founding shareholder or a shareholder owning major shares shall submit the following documents:

- His/her resume (made according to Appendix 2 to this Circular - not printed herein) and judicial records as prescribed by law:

- Written certification of enterprises or copies of degrees and diplomas as prescribed in Point a (iii). Clause 3. Article 5 of this Circular:

- His/her written commitment to financially supporting the bank to address capital or liquidity difficulties:

- List of his/her incomes and assets valued at VND 100 million or more, made according to the form set by the State Bank (Appendix 7 to this Circular - not printed herein).

b/ Dossier of an institutional shareholder:

(i) An application for share purchase, made according to the form set by the State Bank for organizations (Appendix 3 to this Circular – no printed herein):

(ii) A list of its affiliated persons, made according to the form set by the State Bank (Appendix 5 to this Circular - not printed herein)

(iii) Its establishment permit or business registration certificate or equivalent document:

(iv) The paper of authorization of a representative of contributed capital at the bank:

(v) The organization and operation charter;

(vi) The identity card or passport or another lawful personal identification paper of its at-law representative or authorized representative of the capital-contributing organization at the bank:

(vii) The competent authority's written approval for the organization to contribute capital to establish a bank;

(viii) Financial statements for 3 consecutive- years preceding the year of application for the establishment of the bank and the latest financial statement which is made within 90 days before the time of submitting an application for the establishment of a bank specified in Clause 1 of this Article and independently audited by an audit company in the list of audit organizations qualified for corporate auditing announced by the Ministry of Finance without any exemption opinions.

(ix) Apart from the above documents, a founding shareholder or a shareholder holding major shares shall submit the following documents:

- The resume of the representative of the contributed capital, made according to Appendix

2 - not printed herein):

- The written commitment to financially supporting the bank to address capital or liquidity difficulties:

- Financial statements for 5 consecutive years preceding the year of application for the establishment of a bank, which are audited by an audit company in the list of audit organizations qualified for corporate auditing announced by the Ministry of Finance without any exemption opinions.

6. Dossiers of the projected administration, control and executive apparatuses:

a/ A list of projected personnel of the administration, control and executive apparatuses;

- Their resumes, made according to Appendix 2 to this Circular - not printed herein, and judicial records as prescribed by law;

c/ Certified copies of diplomas proving their professional qualifications;

7. The minutes of the meeting of founding shareholders on the election of the preparation board and the head of the preparation board as prescribed in Clause 2. Article 4 of this Circular.

Article 7. Dossier of application for a license

1. An application for a license, made according to the form set by the State Bank of Vietnam (Appendix 1 to this Circular - not printed herein);

2. The bank's organization and operation charter:

3. The bank's establishment scheme with contents specified in Clause 5, Article 5 of this Circular:

4. The minutes on the first meeting of the Shareholders General Meeting approving contents related to the establishment of the bank, made according to Clause 3. Article 4 of this Circular (including the approval of the founding shareholders' change of share holding rates according to Point d, Clause 4, Article 6 of this Circular, if any);

5. The minutes of the meeting of the Board of Directors on the election of its chairman; the minutes of the meeting of the Control Board on the election of its head and full-time members;

6. The Board of Directors' decision on the appointment of the Director General;

7. Dossiers of non-founding shareholders specified in Clause 5. Article 10 (in case of modification);

8. Dossiers of personnel specified in Clause 6. Article 6 (in case of modification);

9. A list of capital-contributing organizations and individuals, with the following details:

a/ Full name, permanent address, nationality, number of identity card, date and place of issue or passport or other lawful personal identification paper, for individuals;

b/ Name and address of head office, serial number of establishment decision or business registration certificate, for organizations;

c/ Amount and value of contributed capital, holding rate, number and type of shares; and the time limit for capital contribution:

10. Written certifications issued by Vietnamese commercial banks on organizations" and individuals' deposits according to Point c.Clause 2, Article 5 of this Circular;

The provincial-level People's Committee's written approval for the bank to be headquartered in the locality;

The written certification of the lawful ownership right or use right to the head office:

13. Internal regulations on organization and operation of the bank according to Point h (ii). Clause 5. Article 5 of this Circular.

Article 8. Principles on compilation of dossiers

1. Copies of papers and documents must be certified by competent agencies in accordance with law;

2. All documents signed by the preparation board must have a heading "The preparation board for the establishment of (name of the bank) joint-stock commercial bank."

Article 9. Operation conditions

I. To conduct operation, a licensed bank must fully meet the following conditions:

a/ Having its organization and operation charter approved by the State Bank;

b/ Having a business registration certificate;

c/ Having sufficient charter capital as prescribed in Clause 1. Article 5 of this Circular, which must be deposited in an interest-free blockaded account opened at the State Bank's branch in the province or city where the bank is to be headquartered after the licensing and at least 30 days before its operation inauguration. This capital amount can be released only after the bank inaugurates operation;

d/ Having a head office which satisfies prescribed conditions:

e/ Publishing on newspapers details of its license as prescribed by law.

f/ Ensuring at least the following conditions in strict accordance with the bank establishment scheme already submitted to the State Bank:

(i) Charter capital:

(ii) Key personnel (members of the Board of

Directors, members of the Control Board and executive officers);

(iii) Information technology.

2. If wishing to change one or several contents specified at Point f. Clause I of this Circular compared to the bank establishment scheme submitted to the State Bank, the bank shall send a document to the State Bank (via the Banking Inspection and Supervision Agency), clearly stating the reasons for the change, and can effect such change only after obtaining the State Bank's approval.

3. Within 12 months after obtaining a license from the State Bank, the bank shall inaugurate and conduct operation.

4. Past the time limit prescribed in Clause 3 of this Article, if the bank fails to inaugurate and conduct operation, the State Bank shall revoke its license in accordance with law.

Article 10. Contents of licenses

1. A license must contain the following principal details:

a/The serial number, place and time of grant;

b/ The name of the bank:

(i) Full name in Vietnamese and English;

(ii) Abbreviated name in Vietnamese and English;

(iii) Transaction name (if any);

c/ Location of the head office;

d/ Operation area;

e/ Charter capital;

f/ Contents of operation;

g/ Operation duration;

h/ Name and permanent address of the bank's at-law representative;

i/ Full names and permanent addresses of individual founding shareholders and names and addresses of head offices, serial numbers of establishment licenses or business registration certificates of institutional founding shareholders, capital amounts contributed by founding shareholders and percentages of capital contribution for the establishment of the bank.

2. If a license is lost. torn, burnt or otherwise damaged, the bank shall make a written explanation clearly stating the reasons and requesting the State Bank to grant a new license.

Article 11. Payment of fees

Within 15 days after being licensed or having its operation duration extended, a licensed bank shall pay a licensing fee or a fee for the extension of its operation duration. Fee rates comply with the Finance Ministry's regulations.

Article 12. Use of licenses

1. A licensed bank must use the name slated in its license and operate strictly according to the provisions of its license.

2. It is strictly prohibited to counterfeit, erase, transfer, lease or lend licenses granted by the Governor of the State Bank of Vietnam.

Chapter III

RESPONSIBILITIES OF CONCERNED ORGANIZATIONS AND INDIVIDUALS

Section I. ORGANIZATIONS AND INDIVIDUALS CONTRIBUTING CAPITAL TO ESTABLISH BANKS

Article 13. Business registration

After being licensed, a bank shall carry out business registration in accordance with law.

Article 14. Responsibilities of organizations and individuals contributing capital to establish a bank

1. To take responsibility before law for the sources of capital contributed to establish the bank according to Point c. Clause 1. Article 5 of this Circular.

2. To transfer shares according to the following provisions:

a/ For founding shareholders:

(i) Within 5 years after the issuance of the business registration certificate, founding shareholders may transfer to other founding shareholders only common shares in the total number of shares acquired from capital contribution to the establishment of the bank if meeting the requirements stipulated at Point b. Clause 2 and Point c. Clause 3, Article 5 of this Circular:

(ii) Founding shareholders may not transfer their preferred voting shares to others. The preferred voting rights of founding shareholders are valid only for 3 years after the bank is issued the business registration certificate. After this period, preferred voting shares of founding shareholders shall be converted into common shares.

b/ For non-founding shareholders: Within 3 years after the issuance of the business registration certificate. non-founding shareholders may transfer their shares acquired from capital contribution for the establishment of the bank only to other shareholders in the list of the bank's shareholders at the time the business registration certificate becomes valid if meeting the requirements specified at Point b. Clause 2. Article 5 of this Circular:

c/ Past the time limits specified at Points a and h of this Clause, shareholders may transfer their shares and maintain share ownership percentages in accordance with current law.

3. To take responsibility for the truthfulness and accuracy of their dossiers according to this Regulation:

4. To comply with relevant regulations on the establishment and operation of banks.

Article 15. Responsibilities of the preparation board

1. To compile dossiers under Article 6 of this Regulation and submit H dossier sets of application (including two originals) to the State Bank (via the Banking Inspection and Supervision Agency) for in-principle approval of the establishment of a bank: and I dossier set of application to the provincial-level People's Committee of the locality (where the bank is to be headquartered) for approval of the location of the bank's head office.

2. After the State Bank issues a written in-principle approval of the establishment of the bank, the preparation board shall:

a/ Organize the first meeting of the Shareholder Assembly to approve contents prescribed in Clause 3. Article 4 of this Circular:

b/ Compile a dossier under Article 7 of this Circular and submit 2 original sets to the State Bank (via (he Banking Inspection and Supervision Agency):

c/ Notify shareholders for depositing money at a Vietnamese commercial bank according to Point c. Clause 2. Article 5 of this Circular:

d/ Within 90 days after the Governor of the State Bank issues a written in-principle approval of the bank establishment, the preparation board shall submit an application enclosed with a dossier of application for a license as prescribed in this Circular. Past this time limit, the written in-principle approval will become invalid.

3. Guide shareholders to contribute capital and evaluate their dossiers according to Articles 6 and 7 of this Circular.

4. Take responsibility for the truthfulness and accuracy of the dossier submitted to the State Bank.

5. Notify shareholders of the reasons why the establishment of a bank is not licensed, in case the State Bank refuses to license.

6. Present to the evaluation council on the eligibility to establish a bank as required by the State Bank.

Article 16. Responsibilities of the head of the preparation board

1. To convene and chair the first meeting of the Shareholder Assembly in accordance with law.

2. To sign documents related to the application for a license for the establishment of a bank until the State Bank grants a license, approves the organization and operation charter and the posts of chairman and member of the Board of Directors, head and member of the Control Board and Director General of the bank.

3. To personally report on the contents specified in Clause 6. Article 15 of this Circular or authorize a member of the preparation board to do so.

Section II. RESPONSIBILITIES OF THE STATE BANK

Article 17. The council for evaluation of licence application dossiers (the evaluation council)

1. The evaluation council is composed of members who are representatives of the Slate Bank's attached units which are defined from Articles 18 thru 26 of this Circular.

2. The evaluation council's chairman is a representative of the State Bank's leadership.

3. The establishment and tasks of the evaluation council shall be prescribed by the State Bank Governor.

Article 18. The Banking Inspection and Supervision Agency

1. To act as the focal point in solving problems arising in the course of implementation of this Circular.

2. To propose the settlement of matters related to the grant of licenses (including the submission of changes specified at Point f. Clause 1 and Clause 2, Article 9 of this Circular to the Stale Bank Governor for approval).

3. To act as the focal point in receiving and evaluating licence application dossiers:

a/ For dossiers of application for in-principle approval: Within 240 working days after receiving a complete dossier as prescribed in Article 6 of this Circular, the Banking Inspection and Supervision Agency shall:

(i) Send written requests for evaluation, enclosed with the dossier, to members of the evaluation council. A written request for evaluation must clearly state its evaluation results and opinions on the licensing;

(ii) Send a written request for convening a meeting of the preparation board for explanation about matters related to the establishment of a bank as prescribed in Clause 6. Article 15 of this Circular:

(iii) Evaluate the dossier, summarize opinions of members of the evaluation council, and draft a report requesting the chairman of the evaluation council to convene a council meeting to consider the dossier of application for in-principle approval;

(iv) Based on the minutes of the council meeting, submit to the council chairman one of the following documents for subsequent submission to the State Bank Governor:

-A document on in-principle approval of the establishment of a bank, if the dossier satisfies all the conditions prescribed in this Circular: or

- A document stating that in-principle approval cannot be granted and requesting the preparation board to supplement the dossier or explain unclear matters in the dossier; or

- A document on refusal to grant an in-principle approval of the establishment of a bank if the dossier fails to fully meet the conditions prescribed in this Circular.

b/ For licence application dossiers:

Within 120 working days after receiving a complete dossier, the Banking Inspection and Supervision Agency shall evaluate the dossier and submit to the chairman of the evaluation council for submission to the State Bank Governor:

(i) For signing a decision on the grant of a license, approval of the organization and operation charter and posts of chairman and member of the Board of Directors, head and member of the Control Board and Director General of a bank, if all conditions are satisfied and the dossier is complete as prescribed in this Circular: or.

(ii) For issuance a document stating that in- principle approval cannot be granted and requesting the preparation board to supplement the dossier or explain unclear matters in the dossier; or.

(iii) For issuance a document on refusal to grant a license if conditions prescribed in this Circular are not fully satisfied.

4. To manage and preserve licensing dossiers after granting licenses.

Article 19. The Department of Legal Affairs

1. Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the Department of Legal Affairs shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

2. To act as the focal point in handling legal matters arising in the licensing process.

Article 20. The Monetary Policy Department

1. Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the Monetary Policy Department shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

2. To assess the impacts of the establishment of a new bank in relation to monetary policies of the State Bank.

Article 21. The International Cooperation Department

1. Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the International Cooperation

Department shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

2. To evaluate arising issues concerning Vietnam's commitments on accession to the World Trade Organization.

Article 22. The Internal Audit Department

Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the Internal Audit Department shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

To evaluate the observance of processes and procedures related to the grant of licenses by the State Bank's Departments.

Article 23. The Banking Strategy Institute

Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the Banking Strategy Institute shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

To evaluate the bank's development strategies and its sustainable development capability in each period.

Article 24. The Information Technology Department

1. Within 30 working days after the Banking

Inspection and Supervision Agency makes a written request, the Information Technology Department shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

2. To evaluate matters related to the bank's information technology

Article 25. The Finance and Accounting Department

1. Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the Finance and Accounting Department shall, in capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of the evaluation results.

2. To evaluate matters related to financial capabilities of shareholders according to this Circular and other relevant provisions of law.

Article 26. The State Bank's branches in provinces or centrally run cities where to be-established banks will locate their head offices

1. Within 30 working days after the Banking Inspection and Supervision Agency makes a written request, the State Banks branch in a province or centrally run city where a to-be-established bank will locate its head office shall, in the capacity as a member of the evaluation council, evaluate the dossier of application for in-principle approval and notify in writing the Banking Inspection and Supervision Agency of evaluation results.

2. To act as the local point in working with the local administration of the locality where the bank will locate its head office on the establishment of the bank in that locality (upon request).

3. To certify the opening of a blockaded account and money amounts deposited by the bank's shareholders in this account.

4. To direct and supervise the bank in observing and ensuring the conditions prescribed by law and the State Bank before inaugurating its operation.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 27. Effect

1. This Circular takes effect 45 days from the dale of its signing.

2. Decision No. 24/2007/QD-NHNN of June 7. 2007. promulgating the Regulation on the licensing of establishment and operation of joint-stock commercial banks, and Decision No. 46/ 2007/QD-NHNN of December 25. 2007. amending and supplementing a number of articles of the Regulation on the licensing of establishment and operation of joint-stock commercial banks, issued together with the State Bank Governor's Decision No. 24/2007/QD-NHNN of June 7. 2007. cease to be effective.

Article 28. Operating banks

Banks which have been licensed before the effective date of this Circular are not required to carry out procedures for the grant of new licenses.

Article 29. Organization of implementation The Chief of the Office, the Director of the

Banking Inspection and Supervision Agency and heads of units under the State Bank, directors of the State Bank's provincial-level branches, chairpersons and members of the Boards of Directors, heads and members of the Control Boards and Directors General of joint-stock commercial banks and concerned organizations and individuals shall implement this Circular.-