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DECISION No. 40/2007/QD-NHNN:
Conditions for founders of financial companies

Under State Bank Decision No. 40/2007/QD-NHNN of November 2, promulgating the Regulation on licensing the establishment and operation of non-bank joint-stock credit institutions, any enterprise which is a founding shareholder of a joint-stock financial company must have minimum capital of VND 200 billion, total assets of VND 500 billion, and have conducted profitable business operation in the year prior to applying for an establishment license.

Founding shareholders who are individuals must be knowledgeable about banking, have professional ethics, have not been found guilty of any crime, and are financially capable to make capital contributions and commitments to support non-bank joint-stock credit institutions in case these institutions encounter capital difficulties or insolvency.

Founding shareholders which are organizations are required to prove their financial capacity to support non-bank joint-stock credit institutions in case these institutions encounter capital difficulties or lack solvency or liquidity.

Founding shareholders which are credit institutions are required to have total assets of at least VND 3 trillion and a bad debt ratio of under 3% of total debit balance at the time of application for a license to establish a non-bank joint-stock credit institution; have committed no violation of State Bank regulations on safety of banking activities; and have conducted profitable business operation in the year preceding the year of application for the establishment license.-

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