What are regulations on operating network management of non-bank credit institutions in Vietnam?

Pursuant to Article 6 of the Circular 53/2018/TT-NHNN stipulating regulations on operating network management of non-bank credit institutions in Vietnam as follows:

1. The non-bank credit institution must formulate the Regulations on operating network management for ensuring safe and effective operations in conformity with applicable laws and managerial capability of each unit of its operating network. The Regulations must include, inter alia, the following contents:

a) Organizational and personnel structure;

b) Operations, scope of operation, accounting mechanism;

c) Risk limit for each business activity or operation imposed on each customer, each group of customers, and all customers of a branch;

d) The headquarters’ mechanism for management and supervision of its network members for ensuring safe and effective operations;

dd) Standards and eligibility requirements to be satisfied by Directors and Deputy Directors of branches, heads of professional divisions, heads of representative offices and administrative units who are required to meet all professional competence and professional ethics requirements same as those to be satisfied by holders of equivalent positions at the headquarters in accordance with internal regulations of the non-bank credit institution and relevant laws.

2. The Regulations must be periodically reviewed in accordance with the non-bank credit institution’s internal regulations and amended or revised (where necessary) for adapting to changes in the network members and market developments.

3. Within 05 business days from the promulgation or modification of the Regulations on operating network management, the non-bank credit institution must submit the Regulations to the SBV (via the Bank Supervision and Inspection Agency), SBV’s branch in the province or city where its headquarters is located.

Above are regulations on operating network management of non-bank credit institutions in Vietnam.

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