The State Bank of Vietnam (SBV) has just announced to collect opinions from organizations and individuals on the Draft Circular regulating commercial banks (CBs) with shareholders, shareholders and related persons owning shares exceeding the prescribed ratio to ensure compliance with the provisions of the Law on Credit Institutions 2024 (CIs).
Regarding the need to develop a Draft Circular, the State Bank said that the Law on Credit Institutions 2024 has changed the share ownership ratio of a shareholder, a shareholder and a related person, and changed the way to determine related persons and indirect share ownership.
At the same time, the regulations on time limit, order and procedures for transition in cases of share ownership exceeding the previously prescribed limit still have many problems that need to be resolved.
Build a clear compliance roadmap
Accordingly, the Draft Circular requires commercial banks to coordinate with shareholders, shareholders and related parties owning shares exceeding the ratio to develop and implement a compliance roadmap in accordance with the restructuring plan or approved by the competent authority of shareholders and related parties to ensure compliance with the provisions of the Law on Credit Institutions.
Commercial banks review the list of shareholders, shareholders and related persons owning shares exceeding the ratio. The data closing date is June 30, 2024.
The compliance roadmap of commercial banks must have at least the following contents: list of shareholders, shareholders and related persons, including full information, legal documents, number of shares, etc.;
The draft of the State Bank requires banks to submit a compliance roadmap to the Banking Inspection and Supervision Agency within 120 days from the effective date of the new circular.
Measures to reduce ownership ratio and implementation timelines to comply with the provisions of the Law on Credit Institutions...
The draft also requires banks to submit a compliance roadmap to the State Bank through the Banking Inspection and Supervision Agency within 120 days from the effective date of the new circular.
In order to ensure the safety of commercial bank operations, the Banking Inspection and Supervision Agency will require the bank to revise and complete the compliance roadmap.
Within 30 days from the date of receipt of the request from the Banking Inspection and Supervision Agency, the commercial bank must edit, complete and send the compliance roadmap to the State Bank.
Shareholders with shares exceeding the limit will not receive cash dividends.
Article 4 of the Draft also clearly states that banks and related organizations and individuals in the compliance roadmap are responsible for implementing the compliance roadmap sent to the State Bank.
During the implementation of the compliance roadmap, if necessary, the bank shall coordinate with relevant organizations and individuals to adjust the applicable measures and implementation roadmap, but must ensure the compliance roadmap deadline.
Shareholders, shareholders and related persons at commercial banks who own shares exceeding the ratio are not allowed to increase the number of shares held at the bank in any form until they ensure compliance with the prescribed share ownership limit, except in the case of receiving bonus shares or dividends in shares, the circular added.
From the effective date of this Circular, credit institutions shall not grant credit or grant new credit (in case credit has been granted) to shareholders, shareholders in related shareholder groups who own shares exceeding the limit or related persons of such shareholders.
Shareholders and related groups of shareholders who currently own shares exceeding the ratio have not received cash dividends (if any) for the number of shares held exceeding the limit until they ensure compliance with the prescribed share ownership limit.
In case commercial banks, shareholders, shareholders and related persons do not comply with the compliance roadmap, depending on the nature and level, the State Bank will consider and apply handling measures according to the provisions of law.
Source: https://www.nguoiduatin.vn/ngan-hang-phai-som-co-lo-trinh-tuan-thu-voi-co-dong-so-huu-vuot-tran-quy-dinh-204240816112635874.htm
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