Vietnam Cooperative Bank Officially Established

The Vietnam Cooperative Bank has chartered capital of VND 3,000 billion, including money from the State Budget, People’s Credit Funds and other legal entities.

On June 4, 2013, Governor of the State Bank of Vietnam signed the license number 166/GP-NHNN to establish the Vietnam Cooperative Bank at the request of the Central People’s Credit Fund. This license takes effect as of the date signed.

According to the license, the Vietnam Cooperative Bank is headquartered at 15T Nguyen Thi Dinh street, Trung Hoa ward, Cau Giay district, this bank has chartered capital of VND3,000 billion, including money support from State budget, People’s Credit Funds and other legal entities. The license has validity of 99 years duration.

The Vietnam Cooperative Bank has operation scope over the whole territory of Vietnam, is able to establish its branches domestically and internationally if formerly accepted by the State Bank of Vietnam. The Vietnam Cooperative Bank must follow all regulations and laws of Vietnam.

The Vietnam Cooperative Bank is legal to operate in these businesses:

For People’s Member Credit Fund: to open deposit accounts for its members as People’s Credit Funds; receiving deposits, giving credits to People’s Credit Funds based on the regulations of capital harmonisation decided by Director Board of the Cooperative Bank and popularised to all credit institution members; forming, developing and applying new products and services to satisfy the needs of People’s Credit Funds, as well as supporting community benefits after getting permission from the State Bank.

For customers other than People’s Credit Funds: receiving no term deposits and termed deposit; savings; current account and other deposits of organisations and individuals; granting loans for customers other than People’s Credit Funds after prioritising capital demand of People’s Credit Funds; maintaining loan rate for customers other than People’s Credit Funds in compliance with regulations of the State Bank.

Other activities: issuing deposit certificates, bills, bonds and other valuable papers to mobilise domestic and foreign capital according to regulations of the State Bank; getting loans from the domestic money market and foreign money markets in compliance with the State Bank’s regulation; entrusting and receiving entrust according to regulations of the State Banks and relevant laws; getting re – financing loans and other types of loans from the State Bank.

Conducting discounting, re-discounting, pledging commercial papers and other valuable papers; giving banking guarantee in compliance with the State Bank’s regulations; issuing credit cards; providing paying measures, services and check for members as People’s Credit Funds and customers other than People’s Credit Funds; organising internal payments, participating in inter – state banking payment system.

Participating in Treasury Bill bids; selling and purchasing exchange measures, government bonds, Treasury Bills, State Bank Bills and other valuable papers in the money market; serving as agent in fields of banking, insurances, assets management; providing advisory services in fields of finance, banking and investment in compliance with the State Bank.

Trading, providing foreign exchange service; trading, providing derivatives; contributing, purchasing stocks; trading, investing in securities; trading gold, silver, gemstones and conducting other banking – related activities approved in written documents by the State Bank.

Also on June 4, 2013, Governor of the State Bank issued Decision 1209/QĐ-NHNN to revoke the license of State People’s Credit Fund. Particularly, with 15 working days counted from the day license number 166/GP-NHNN to establish Vietnam Cooperative Bank takes effect, Vietnam Cooperative Bank has to return to the State Bank certificate 001/NH-GP dated July 20, 1995 of the Governor of the State Bank on the Central People’s Credit Fund.

LK

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