As specified in the Regulation on opening and termination of operation of branches and representative offices of non-bank credit institutions, issued together with the State Bank Governor’s Decision No. 01/2008/QD-NHNN of January 9, the conditions for credit institutions other than banks to open affiliates include: having operated for more than one year, or three years for those wishing to open overseas branches; having paid-in charter capital sufficient for branch operation; ensuring operation safety ratios at the time of application for branch opening; a pre-tax profit ratio equal to at least 20% of the own capital in the year preceding the year of branch opening; having a non-performing loan rate of under 3% of the total debit balance for financial leasing companies, or under 2% for financial companies.
As specified in the Regulation on opening and termination of operation of branches and representative offices of non-bank credit institutions, issued together with the State Bank Governor’s Decision No. 01/2008/QD-NHNN of January 9, the conditions for credit institutions other than banks to open affiliates include: having operated for more than one year, or three years for those wishing to open overseas branches; having paid-in charter capital sufficient for branch operation; ensuring operation safety ratios at the time of application for branch opening; a pre-tax profit ratio equal to at least 20% of the own capital in the year preceding the year of branch opening; having a non-performing loan rate of under 3% of the total debit balance for financial leasing companies, or under 2% for financial companies.
A credit institution will be permitted to open overseas branches or representative offices only in countries or territories that have signed with
Within six months after obtaining permits for opening branches or representative offices, non-bank credit institution must commence operation of these branches or representative offices or permits may be withdrawn.
Credit institutions are permitted to open domestic transaction bureaus only in provinces or cities where they or their branches are headquartered and may only provide through these bureaus loans or financial leases not exceeding VND 300 million per client.
(Source: VNLaw)
