SBV governor on Feb 11 signed the Circular No 04/2010/TT-NHNN allowing banks, finance companies, finance leasing firms, associated credit institutions to merge, acquitise or buy back other credit institutions.
Under it, the M&A between associated credit institutions must comply with the regulation on licensing, revoking the business and operation license of people’s credit funds, opening and ending operation of transaction sites and branches of people’s credit funds, and funding realisation of these funds according to SBV’s Decision No 24/2006/QD-NHNN dated June 6, 2006.
Banks, finance firms, associated credit institutions can be merged into a bank, finance firm or other finance leaser. Bank is allowed to buy back finance company, finance leasing company while finance firm can buy back finance leasing business with particular plan.
Credit institutions being merged or acquitised or bought back must ensure the minimum charter capital equalling to the authorised capital under current laws.
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