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The State Bank THE SOCIALIST REPUBLIC Of VIETNAM
of Vietnam Independence-freedom-Happiness.
Hanoi, November 27th, 1993
1. The increase of the statutory Capital in 1994 must be in compliance with principle of fund contribution such as : solutions to increase concretely funds, resolutions of the shareholder's Meeting, documents on fund contribution in accordance with the pr esent regulations of the Government and the State Bank.
2. from January 1st, 1994 on the State Bank branches in provinces, cities will only receive document files to appraise and submit them to the Governor of the State Bank for considering and issuing the operation license if the shareholding credit institut ion has the minimum statutory Capital meeting the demand regulated in Decision No. 223/QD-NH5.
3. Prior to the 31st December, 1996, shareholding credit institution that were issued operating licenses and have statutory capital lower than the stipulated level must have solutions and measures on increasing its finance to obtain the minimum statutory capital as stipulated in Decision No. 223/QD-NH4.
The increased speed of the statutory capital of shareholding credit institutions would be as follows :
Unit : one billion VND
1994 1995 1996 + Urban Commercial stock bank : - In Ho Chi Minh City : 30 50 70 - In Hanoi City : 25 40 50 - In other provinces and cities : 10 15 20 + Rural commercial stock bank- With branches : 1 2 3 - Without branches : 0.5 0.7 1 + Shareholding financial 20 30 50
4.1. Increase itself by encouraging its old shareholders to contribute more fund or encouraging new shareholders to contribute shares.
4.2. Unite two or many shareholding credit institutions whose transaction offices located at the same province, city or at different regions to become a new shareholding credit institutions (a new legal institution). In this case, the transaction office a nd branches of the old shareholding credit institutions (if any) would become the transaction office or branch of the new one.
4.3. Integrate into other shareholding credit institution whose transaction office located in the same provinces, cities or in the other regions to become a new one with a wider scale. In this case, the self-integrated. Shareholding credit institutions wi ll not exits as separate legal institutions but transaction offices and branches of those institutions (if any) can become branches of the integrated institution.
5. The State Bank encourages shareholding credit institutions to obtain and over obtain the minimum statutory capital before the deadline. According to the decision No. 223/QD-NH5, while the minimum statutory capital in still not obtained, the shareholdin g credit institutions are not allowed to establish new branches in the same provinces, cities or other regions. Institutions reached the defined level (including institution newly established after January 1st, 1994) the should continue to maintain soluti ons on the increase of fund aimed at upgrading their activities.
6. Concrete activities of shareholding credit institutions.
6.1. Organize shareholder's Meeting to adopt solutions on fund increase and to register the increase speed of fund every year as stipulated at the paragraph 3 above. The chairman of the board of administration of the credit institution has to submit a let ter together with all files of the fund increase to the State Bank branch in the provinces cities where the main office of the credit institution located.
6.2. In case, the credit institution finds itself that it can not reach the increased speed of statutory capital level in 1994 and in 1995 as showed at paragraph 3, but it obtains the statutory capital level as stipulated at the end of 1996, the sharehold ers 'Meeting has to have resolution on the increase of statutory capital every year, prior to June 3rd 1994 documents of pledging and registering the increased level of chartered fund every year must be submitted to the State Bank branched in provinces, c ity where the main office of the credit institution located by the Chairman of the board of administration.
6.3. In case, the credit institution finds itself that it can not obtain the statutory capital at the end of 1996, at the shareholders' Meeting any credit institutions does not wish to unite or integrate with the others they can dissolve or apply for exte nsion of the increase of chartered fund, but they have to make commitment in term of the time of fund contribution; the State Bank will consider concretely each case.
7. Responsibilities of the State Bank branches in provinces, cities.
7.1. Prior to the 31st, June 1994, they have to synthetic registrations on the increase of chartered fund, on the unity, the integration or the dissolution of the credit institution that their main offices located at the area; and then submits them to the Central State Bank.
7.2. Submit to the Governor of the State Bank the situate on of their activities and put forward solutions to settle toward credit institutions that do not conduct the guidelines in paragraphs - 3, 4 and 6 of this circular.
7.3. Appraise files applying for the increase of fund of shareholding credit institutions in the area and submit them to the Governor of the State Bank for the approval.
8. After December 31st, 1996 or after the extension time shareholding credit institutions do not reach the stipulated fund level, the State Bank will treat credit institutions as the provision 2, article 10 of the banking Decree-law applying for people's Credit fund and financial company.
During the implementation of this circular, any problem arising must be informed by writing to the Central State Bank for considering and solving.