Regulations on M&A of Credit Institutions

The State Bank of Vietnam (SBV) has promulgated the Circular No 04/2010/TT-NHNN dated February 11, 2010 allowing banks, finance companies, finance leasing firms, associated credit institutions to merge, acquire or buy back other credit institutions. The SBV governor has the authority to approve M&A of credit institutions.

 

Accordingly, banks, finance companies and credit institutions can be merged into a bank; finance companies can merge with a finance company; financial leasing companies can merge with a financial leasing company; banks can merge with banks, finance companies and credit institutions to form another bank; finance companies can be merged into a finance company; financial leasing companies can be merged into a financial leasing company; a bank can acquire finance companies, financial leasing companies; a finance company can acquire financial leasing companies.

 

Credit institutions can employ consulting services, consultants must be certified institutions.