The Governor of the State Bank of Vietnam on March 31 issued Circular No. 04/2015/TT-NHNN on people’s credit funds, which applies to organizations and individuals involved in the grant of establishment and operation licenses of people’s credit funds, and organization and operation of the funds.
Accordingly, people’s credit funds must operate under principles of voluntariness, self-reliance and accountability for operation results in order to assist members in effectively conducting service production and business activities and improving living standards.
Directors of provincial-level State Bank branches are assigned to consider and grant licenses for people’s credit funds based in their localities.
In order to be granted an establishment and operation license, a people’s credit fund must maintain its charter capital at least equal to the legal capital prescribed by the Government at the date of license application; have at least 30 members meeting prescribed requirements; be financially capable of contributing capital for the establishment of the fund, in which the contributed capital of each member must not exceed 10 percent of the fund’s charter capital; have managers and the Control Board’s members meeting the prescribed conditions and standards; and have a charter compliant with the Law on Credit Institutions, Law on Cooperatives and other relevant regulations, and an establishment and feasible business plans for the first 3 years of operation.
People’s credit funds must commence their operation within one year after being licensed, and announce detailed information in the mass media 10 working days before commencing operation. The term of operation of each fund must not exceed 50 years.-