Tài liệu Law on credit institutions 47

NATIONAL SOCIALIST REPUBLIC OF VIETNAM ASSEMBLY Independence – Freedom – Happiness ----------- ------------------------------ Law No. 47/2010/QH12 LAW ON CREDIT INSTITUTIONS - Pursuant to the Constitution of the Socialist Republic of Vietnam issued in 1992, of which several articles were amended, supplemented in accordance with the Resolution No.51/2001/QH10; - The National Assembly hereby issues the Law on Credit Institutions. Chapter I GENERAL PROVISIONS Article 1. Governing scope This Law provides for the establishment, organization, operation, special control, reorganization, dissolution of a credit institution; the establishment, organization, operation of a foreign bank’s branch, foreign credit institution’s representative office, other foreign organizations engaging in banking activity. Article 2. Subjects of application This Law shall be applicable to following subjects: 1. Credit Institutions; 2. Foreign bank’s branches; 3. Foreign credit institution’s representative offices, other foreign organizations engaging in banking activity; 4. Organizations, individuals being involved in the establishment, organization, operation, special control, reorganization, dissolution of a credit institution; the establishment, organization, operation of a foreign bank’s branch; foreign credit institution’s representative office, other foreign organizations engaging in banking activity. Article 3. Application of the Law on Credit institutions, international treaties, international commercial practices and related laws 1. The establishment, organization and operation, special control, reorganization, dissolution of a credit institution; the establishment, organization and operation of a foreign bank’s branch, foreign credit institution’s representative office, other foreign organizations engaging in banking activity shall be required to comply with provisions of this Law and other provisions of applicable laws. 2. In the event where there is a difference between provisions in this Law and other laws relating to the establishment, organization, operation, special control, reorganization, dissolution of a credit institution; the establishment, organization, operation of a foreign bank’s branch, foreign credit institution’s representative office, other foreign organization engaging in banking activity, provisions of this Law shall prevail. 3. In the event where provisions of an international treaty, to which the Socialist Republic of Vietnam has acceded, are different from those of this Law, provisions of that international treaty shall prevail. 4. Organizations, individuals engaging in banking activity shall be entitled to make agreement about the application of commercial practices, including: a) International commercial practices issued by the International Chamber of Commerce; b) Other commercial practices which are not contrary to Vietnam’s laws. Article 4. Interpretation In this Law, following terms shall be construed as follows: 1. A credit institution shall be an enterprise which performs one or several or all banking activities. Credit institution shall include banks, non-banking credit institutions, microfinance institutions and people’s credit funds. 2. A bank means a type of credit institution which is possibly entitled to perform all banking activities in accordance with provisions of this Law. By operating nature and objectives, types of banks shall include commercial bank, policy bank, cooperative bank. 3. A commercial bank shall be a type of bank which is authorized to perform all banking activities and other business activities in accordance with provisions of this Law for the sake of profit. 4. A non-banking credit institution shall be a type of credit institution which is authorized to perform one or several banking activities in accordance with provisions of this Law, except for activity of taking deposits from individuals and supply of account payment services to the customers. Non-banking credit institution shall include finance companies, finance leasing companies and other non-banking credit institutions. A finance leasing company shall be a type of finance company whose major activity is finance leasing in accordance with provisions of this Law. 5. A micro-finance institution shall be a type of credit institution which mainly performs some banking activities for the purpose of meeting demand of individuals, households of low income and micro-enterprises. 6. A people’s credit fund shall be a credit institution which is established by legal entities, individuals and households on a voluntary basis in the form of a cooperative to perform several banking activities in accordance with provisions of this Law and the Law on cooperatives mainly aiming at seeking mutual assistance in development of production, business and living. 7. A cooperative bank shall be the bank of all people’s credit funds which are established from the capital contribution by people’s credit funds and some legal entities in accordance with provisions of this Law for the main purpose of system connection, financial support, capital regulation in the system of people’s credit funds. 8. A foreign credit institution shall be the credit institution which is established in a foreign country in accordance with provisions of such country’s laws. A foreign credit institution shall be authorized to have commercial presence in Vietnam in the form of a representative office, a joint venture bank, a 100% foreign owned bank, a foreign bank’s branch, a joint venture finance company, a 100% foreign owned finance company, a joint venture finance leasing company, a 100% foreign owned finance leasing company. The joint venture bank, 100% foreign owned bank is the type of a commercial bank; a joint venture finance company, 100% foreign owned finance company is the type of a finance company; a joint venture finance leasing company, a 100% foreign owned finance leasing company is the type of a finance leasing company in accordance with provisions of this Law. 9. A foreign bank’s branch shall be a subsidiary unit of a foreign bank, which has no legal status, which is guaranteed by the foreign bank to take responsibility for any obligation, commitment of that branch in Vietnam. 10. Own capital shall include the fair value of charter capital of a credit institution or the appropriated capital of a foreign bank’s branch and reserve funds, some other liabilities in accordance with provisions of the State Bank of Vietnam (hereinafter referred to as the State Bank). 11. License shall include the Establishment and Operation License of a credit institution, the Establishment License of a foreign bank’s branch, the Establishment License of a representative office of a foreign credit institution, other foreign organizations engaging in banking activity, which is issued by the State Bank. The document issued by the State Bank on the amendment of, supplement to the License shall be an integral part of the License. 12. Banking activity shall be the permanent trading, supply of one or more of following operations: a) Deposit taking; b) Credit extension; c) Supply of account payment service. 13. Deposit taking shall mean the taking of deposit from organizations, individuals in the form of demand deposit, time deposit, savings deposit, issuance of deposit certificate, promissory note, bill and other forms of deposit taking under the principle of full payment of the principal, interest to be made to the depositor in line with the agreement. 14. Credit extension shall mean an agreement under which an organization, individual uses an amount of money or a commitment which authorizes the use of an amount of money under the principle of repayment to be made by such operations as loan provision, discount, finance leasing, factoring, bank guarantee and other operations of credit extension. 15. Supply of account payment service shall mean the supply of means of payment; supply of payment services in respect of cheque, payment instruction, payment order, collection, collection order, bank card, letter of credit and other payment services to the customer via his/her account. 16. Lending shall mean a form of credit extension, under which the lender lends or commits to lend an amount of money to the borrower for a specific purpose in a certain period under the agreement in the principle of principal and interest repayment to be fully made. 17. Factoring shall mean a form of extending credit to the seller or buyer through the acquisition with the recourse right to be reserved to receivables and payables arising from the purchase, sale of goods, supply of services under the sales and purchase contract, service contract. 18. Bank guarantee shall mean a form of credit extension under which the credit institution commits with the guarantee taking party that the credit institution shall perform the financial obligation in lieu of the customer in the event where the customer fails to perform or insufficiently performs his committed obligations; the customer shall be required to assume the debt and repay to the credit institution in line with the agreement. 19. Discount shall mean a term purchase or purchase with the recourse right to be reserved to assignment instruments, other valuable papers of the beneficiary prior to the payment maturity. 20. Rediscount shall mean the discount of assignment instruments, other valuable papers which have already been discounted prior to the payment maturity. 21. Monetary brokerage shall mean an intermediary work with brokerage fee for performing banking activities and other business activities among credit institutions, other financial institutions. 22. Payment account shall mean a demand deposit opened by the customer at the bank for using payment services supplied by the bank. 23. Derivative product shall mean a financial instrument which is valuated in correspondence with the expected fluctuation in value of an original financial asset, such as exchange rate, interest rate, foreign exchange, currency or other financial assets. 24. Capital contribution, share purchase of a credit institution shall mean the case where the credit institution contributes capital to form charter capital, purchases shares of enterprises, other credit institutions, including the appropriation, contribution of capital to the subsidiary companies, associated companies of that credit institution; contributes capital to investment funds and entrusts capital to other organizations for capital contribution, share purchase under the forms as mentioned above. 25. An investment in the form of capital contribution, share purchase for the purpose of taking controlling power to an enterprise shall include the investments accounting for more than 50% of the charter capital or voting share capital of an enterprise or another investment which is qualified for governing the decision of Shareholders’ General Assembly or Board of Members. 26. Major shareholder of a joint stock credit institution shall mean the shareholder who holds, directly or indirectly, from 5% of the voting share capital or higher of that joint stock credit institution. 27. Indirect ownership shall mean the case where the organization, individual holds charter capital, share capital of a credit institution through a related person or through the investment entrustment. 28. Related person shall mean the organization, individual who has a direct or indirect relationship with other organization, individual in one of following cases: a) The parent with subsidiary company and vice versa; credit institution with its subsidiary companies and vice versa; among subsidiary companies of the same parent company or of the same credit institution; managerial officer, member of Controllers Committee of the parent company or of the credit institution, individual, who or organization, which is competent to appoint such persons to the subsidiary company and vice versa; b) The company or credit institution with the managerial officer, member of the Controllers Committee of the very company or credit institution or with the company, credit institution which is competent to appoint such persons and vice versa; c) The company or credit institution with the organization, individual holding from 5% and more of the charter capital or voting share capital of the very company or credit institution and vice versa; d) A person with his/her spouse, father, mother, children, brother, sister; dd) The company or credit institution with the person as stipulated in point d of this paragraph of the managerial officer, member of the Controllers Committee, contributing member or shareholder holding from 5% and more of the charter capital or voting share capital of the very company or credit institution and vice versa; e) The person who is authorized to represent for the organization, individual as stipulated in points a, b, c, d and dd of this paragraph with the authorizing organization, individual; persons who are authorized to represent for the contributed capital of the same organization with one another. 29. Associated company of a credit institution shall mean the company in which the credit institution or the credit institution and its related person hold more than 11% of the charter capital or more than 11% of the voting share capital, but it is not a subsidiary company of that credit institution. 30. Subsidiary company of a credit institution shall mean a company in one of following cases: a) The credit institution or the credit institution and its related person hold more than 50% of the charter capital or more than 50% of the voting share capital; b) The credit institution is entitled to appoint, either directly or indirectly, a majority of or all members of the Board of Directors, Board of Members or General Director (Director) of the subsidiary company; c) The credit institution is entitled to amend, supplement the charter of the subsidiary company; d) The credit institution and its related person controls, either directly or indirectly, the ratification of resolutions, decisions of the Shareholders’ General Assembly, Board of Directors, Board of Members of the subsidiary company. 31. Managerial officer of a credit institution shall include Chairman, members of the Board of Directors; Chairman, members of the Board of Members; General Director (Director) and other managerial titles as provided for in the Charter of the credit institution. 32. Executive officer of a credit institution shall include the General Director (Director), Deputy General Director (Deputy Director), Chief Accountant, Manager of branches and equivalent titles as provided for in the Charter of the credit institution. Article 5. Use of terms relating to banking activity Any institution which is not a credit institution shall not be permitted to use the phrase or term “credit institution”, “bank”, “finance company”, “finance leasing company” or other phrases, terms in their name, title or supplementary items of the name, title or in trading documents or advertisements, if such use of phrases, terms may make the customer misunderstands that it is a credit institution. Article 6. Form of organization of a credit institution 1. A domestic commercial bank shall be established, organized in the form of a joint stock company, except for the case as stated in Paragraph 2 of this Article. 2. A State-owned commercial bank shall be established, organized in the form of a limited liability company with one member, whose 100% of the charter capital is held by the State. 3. A domestic non-banking credit institution shall be established, organized in the form of a joint stock company, a limited liability company. 4. A joint venture credit institution, 100% foreign owned credit institution shall be established, organized in the form of a limited liability company. 5. A cooperative bank, people’s credit fund shall be established, organized in the form of a cooperative. 6. Micro finance institution shall be established, organized in the form of a limited liability company. Article 7. Right of operation autonomy 1. A credit institution, foreign bank’s branch shall have the right of business autonomy and take self responsibility for their business results. No organization, individual shall be permitted to interfere illegally in the business activity of the credit institution, foreign bank’s branch. 2. A credit institution, foreign bank’s branch shall be entitled to decline a request for credit extension, supply of other services if it deems as unqualified, inefficient, unconformable with provisions of applicable laws. Article 8. Right to engage in banking activity 1. An organization that is eligible in accordance with provisions of this Law and other provisions of applicable laws and is granted by the State Bank with a License shall be authorized to perform one or several banking activities in Vietnam. 2. Any individual, organization that is not a credit institution shall be strictly prohibited from performing banking activities, except for the transaction of security deposit, securities dealing of a securities company. Article 9. Cooperation and competition in banking activity 1. A credit institution, foreign bank’s branch shall be entitled to cooperate and compete in banking activity and other business activities in line with provisions of applicable laws. 2. Any act of competition restraint or unhealthy competition, which is likely to compromise or compromises the implementation of the national monetary policies, safety of the credit institutions system, benefit of the State, legal rights and interests of organizations, individuals, shall be strictly prohibited. 3. The Government shall specifically provide for acts of unhealthy competition in banking activity and the way to deal with such acts. Article 10. Protection of customers’ rights and interests A credit institution, foreign bank’s branch shall have following responsibilities: 1. To participate in deposit insurance, protection organization in accordance with provisions of applicable laws and to publicly announce the said participation in deposit insurance, protection organization at the head office and branches; 2. To facilitate the customer to deposit and withdraw money, to ensure the full and timely payment of principal and interest of the deposits; 3. To decline the investigation, blockade, detainment, deduction and transfer of deposit of customer, except for the case where it is requested by a competent state agency in accordance with provisions of applicable laws or it is approved by the customer; 4. To publicly announce its deposit interest rates, service fees, rights, obligations of the customer in respect of each type of product, service that is being supplied. 5. To announce the official business time and not to stop transaction at its own discretion at the announced time. In case of stopping transaction at the official business time, the credit institution, foreign bank’s branch shall be required to post up at the transaction place within at least 24 hours before the cut-off time. The credit institution, foreign bank’s branch shall not be permitted to stop transaction for more than 01 working day, except for the case as provided for in point e, paragraph 1 Article 29 of this Law. Article 11. Responsibility for anti-money laundering, counter-terrorist financing A credit institution, foreign bank’s branch shall have following responsibilities: 1. Not to conceal, perform business activity relating to the money which has evidence about its illegal origin; 2. To set up an internal regulation on anti-money laundering, counter-terrorist financing; 3. To perform measures of anti-money laundering, counter-terrorist financing; 4. To cooperate with competent state agencies in the investigation against the money laundering, terrorist financing activity. Article 12. Legal representative of a credit institution 1. The legal representative of a credit institution shall be provided for in the Charter of that credit institution and shall be one of following persons: a) Chairman of the Board of Directors or Chairman of the Board of Members of the credit institution; b) General Director (Director) of the credit institution. 2. The legal representative of a credit institution shall be required to reside in Vietnam, in any case of absence from Vietnam, he shall authorize in writing another person, who is a managerial officer, executive officer of the credit institution and is residing in Vietnam, to perform his rights and obligations. Article 13. Supply of information 1. A credit institution, a foreign bank’s branch shall supply information to the account holder about the transactions and balance on his/her account in line with the agreement made with the account holder. 2. A credit institution, a foreign bank’s branch shall be responsible for supplying the State Bank with information relating to its business activity and be supplied by the State Bank with information of the customer who has credit relation with that credit institution, foreign bank’s branch in accordance with applicable provisions of the State Bank. 3. A credit institution, foreign bank’s branch shall be entitled to exchange information with one another about their activities. Article 14. Information security 1. Any staff, managerial officer, executive officer of a credit institution, foreign bank’s branch shall not be permitted to disclose business secrets of the credit institution, foreign bank’s branch. 2. A credit institution, foreign bank’s branch shall be required to keep secret the information relating to the account, deposit, deposited asset and transactions of the customer at the credit institution, foreign bank’s branch. 3. Any credit institution, foreign bank’s branch shall not be permitted to supply information relating to the account, deposit, deposited asset, transactions of the customer at the credit institution, foreign bank’s branch to other organizations, individuals, except for the case where it is requested by a competent state agency in accordance with provisions of applicable laws or it is accepted by the customer. Article 15. Backup database 1. A credit institution, foreign bank’s branch shall be required to set up their backup database so as to ensure the prudential and continuous operation. 2. The setting up of backup database of people’s credit funds, micro finance institutions and credit institutions which do not receive deposits shall be implemented in accordance with applicable provisions of the State Bank. Article 16. Purchase of share by foreign investors 1. A foreign investor shall be authorized to purchase shares of Vietnamese credit institution. 2. The Government shall stipulate conditions, procedures, total maximum shareholding level of foreign investors, the maximum rate of shareholding by a foreign investor at a Vietnamese credit institution; conditions for a Vietnamese credit institution to sell shares to foreign investors. Article 17. Bank for policy 1. The Government shall establish a bank for policy which operates not for the sake of profit in order to implement socio-economic policies of the State. 2. The Government shall provide for the organization and operation of the bank for policy. 3. The Bank for policy shall perform internal control, internal audit; prepare, issue internal procedures on operational activities; perform the regimes on statistics report, operating report and payment activity in accordance with provisions of the State Bank. Chapter II LICENCE Article 18. Competence of issuance and revocation of License The State Bank shall be competent to issue, amend, supplement and revoke the License in accordance with provisions of this Law. Article 19. Legal capital 1. The Government shall provide for the legal capital level applicable to each type of credit institution, foreign bank’s branch. 2. The credit institution, foreign bank’s branch shall be required to maintain the fair value of their charter capital or appropriated capital to be equal to the legal capital at the minimum. 3. The State Bank shall provide in details for the way of dealing with the event where the fair value of charter capital of the credit institution, appropriated capital of the foreign bank’s branch decreases to a lower amount than the legal capital. Article 20. Conditions for issuing License 1. A credit institution shall be issued with the License if they can fully satisfy following conditions: a) The charter capital, appropriated capital is equal to the legal capital at the minimum; b) Owner of the credit institution is a limited liability company with one member, the founding shareholder, founding member is a legal entity which is legally operating and has adequate financial capacity to take part in the capital contribution; the founding shareholder or founding member is a person who has full civil act capacity and adequate financial capacity for the capital contribution. Conditions applicable to the owner of the credit institution who is a limited liability company, founding shareholder, founding member shall be stipulated by the State Bank; c) Managerial officers, executive officers, members of the Controllers Committee must fully satisfy standards, conditions as provided for in Article 50 of this Law; d) Their Charter is in line with provisions of this Law and other provisions of applicable laws; dd) Their establishment scheme, business plan is feasible and does not cause any impact on the security, stability of the credit institutions system; does not create any monopoly or competition restraint or unhealthy competition in the credit institutions system. 2. A joint venture credit institution, 100% foreign owned credit institution shall be issued with a License if they fully satisfy following conditions: a) Conditions as provided for in Paragraph 1 of this Article; b) A foreign credit institution shall be authorized to perform banking activity in accordance with provisions of laws of the country where its head office is located; c) Activities that they plan to ask for permission to carry out in Vietnam should be the activities that the foreign credit institution is permitted, for the time being, to perform in the country where the foreign credit institution’s head office is located; d) The foreign credit institution should have healthy activities, satisfy conditions relating to the total assets, financial situation, adequacy ratios in accordance with provisions of the State Bank; dd) The foreign credit institution shall be required to make a written commitment as to giving financial, technological, administration, management, operational supports to the joint venture credit institutions, 100% foreign owned credit institutions; ensuring that these institutions maintain the fair value of their charter capital not to be lower than the legal capital and observe provisions on prudence assurance of this Law; e) The foreign competent authority has concluded an agreement with the State Bank relating to the inspection, supervision over banking activity, exchange of information about banking security supervision and has made a written commitment about the unified supervision under the international practices applicable to the activities of foreign credit institutions; 3. A foreign bank’s branch shall be issued with a License if they fully satisfy following conditions: a) Conditions as provided for in points a, b, c and dd in Paragraph 1 and points b, c, d and e in Paragraph 2 of this Article; b) The foreign bank should undertake in writing to take responsibility for any obligations and commitments of the foreign bank’s branch in Vietnam; ensure to maintain the fair value of the appropriated capital not to be lower than the legal capital and implement provisions on prudence assurance of this Law. 4. A foreign credit institution’s representative office, other foreign institutions engaging in banking activity shall be issued with a License if they fully satisfy following conditions: a) The foreign credit institution, other foreign institutions engaging in banking activity should be a legal entity which is authorized to engage in banking activity in such foreign country; b) The foreign credit institution, other foreign institutions engaging in banking activity should be authorized to establish a representative office in Vietnam under provisions of applicable laws of the country where head office of that foreign credit institution, other foreign institution engaging in banking activity. 5. Conditions for the issuance of the License applicable to cooperative banks, people’s credit funds, micro financial institution shall be stipulated by the State Bank. Article 21. Application file, sequences, procedures for the issuance of the License The State Bank shall provide in details for the application file, sequences, procedures for the issuance of the License. Article 22. Licensing period 1. Within a period of 180 days since the full receipt of the valid application file, the State Bank shall issue the License or decline to issue the License to the applying institution. 2. Within a period of 60 days since the full receipt of the valid application file, the State Bank shall issue the License or decline to issue the License to the representative office of the foreign credit institution, other foreign institution engaging in banking activity. 3. In case of declining to issue the License, the State Bank shall reply in writing and explain clearly the reason thereof. Article 23. Fee for issuing the License A credit institution, foreign bank’s branch, representative office of foreign credit institution, other foreign institution engaging in banking activity which are issued with a License shall be subject to the payment of fee for the issuance of the License in accordance with provisions of applicable laws on fees and charges. Article 24. Business registration, operation registration After having obtained the License, the credit institution, foreign bank’s branch shall register their business; the representative office of the foreign credit institution, other foreign institution engaging in banking activity shall register their operation in conformity with provisions of laws. Article 25. Announcement of operation information The credit institution, foreign bank’s branch, representative office of the foreign credit institution, other foreign institution engaging in banking activity shall be required to announce on the communication media of the State Bank and on a daily newspaper in 03 consecutive issues or on the electronic papers of Vietnam at least 30 days before the expected opening date in respect of following information: 1. Name, address of the head office of the credit institution, foreign bank’s branch, representative office of the foreign credit institution, other foreign institution engaging in banking activity; 2. Number, date of issue of the License, Business Registration Certificate, Operation Registration Certificate and authorized business activities; 3. Charter capital or appropriated capital; 4. Legal representative of the credit institution, General Director (Director) of foreign bank’s branch, Chief of the representative office of the foreign credit institution, other foreign institution engaging in banking activity; 5. List, respective proportion of capital contribution by founding shareholders or contributing members or owner of the credit institution; 6. Expected opening date. Article 26. Conditions for operation opening 1. A credit institution, foreign bank’s branch, representative office of the foreign credit institution, other foreign institution engaging in banking activity which are issued with the License shall only be authorized to launch their operation since the opening of operation. 2. In order to open operation, the credit institution, foreign bank’s branch which are issued with the License shall be required to fully satisfy following conditions: a) Their Charter has already been registered with the State Bank; b) To have Business Registration Certificate; and have enough charter capital, appropriated capital, qualified money warehouse in accordance with provisions of the State Bank, their head office is qualified for ensuring the security for the assets and in line with the requirements of banking activity; c) To have organizational structure, administration, management system, internal audit, risk management, internal control system in conformity with the type of operation in accordance with provisions of this Law and other provisions of applicable laws; d) To have an information technology system which satisfies the management requirement, operation scale; dd) To have an internal management regulation on the organization, operation of the Board of Directors, Board of Members, Controllers Committee, General Director (Director), operational divisions, departments at the head office; internal regulation on risk management; regulation on network management; e) Their charter capital, appropriated capital in Vietnamese dong should be fully deposited at the non interest earning frozen account opened at the State Bank at least 30 days before the opening of operation. The charter capital, appropriated capital shall be released once the credit institution, foreign bank’s branch has already opened their operation; g) The operation information has already been disclosed in line with provisions in Article 25 of this Law. 3. The credit institution, foreign bank’s branch, representative office of the foreign credit institution, other foreign institution engaging in banking activity shall be required to open their operation within a period of 12 months since the receipt of the License; after this period, if they fail to open operation, their License shall be revoked by the State Bank. 4. The credit institution, foreign bank’s branch being issued with the License shall notify the State Bank of the conditions for opening operation as provided for in Paragraph 2 of this Article at least 15 days prior to the expected opening date; the State Bank shall suspend the opening of operation if the conditions mentioned in Paragraph 2 of this Article are not fully satisfied. Article 27. Use of License 1. The institution which is issued with the License shall be required to use the right name and carry out the right contents of operation as stated in the License. 2. The institution which is issued with the License shall not be permitted to erase, buy, sell, transfer, lease, lend the License. Article 28. Revocation of the License 1. The issued License shall be revoked by the State Bank in following cases: a) There is fraudulent information in the application file for the License so as to be qualified for the issuance of the License; b) The credit institution is splitted, separated, merged, integrated, dissolved and goes bankrupt; c) The credit institution, foreign bank’s branch, representative office of the foreign credit institution, other foreign institution engaging in banking activity fails to operate in line with the contents as provided for in the License; d) The credit institution, foreign bank’s branch commits a serious act of violation to provisions of laws on required reserve, prudential ratios in operation; dd) The credit institution, foreign bank’s branch fails to perform or to fully perform the settlement decision of the State Bank to ensure the prudential ratio in banking activity; e) For a foreign bank’s branch, 100% foreign owned credit institution, representative office of a foreign credit institution, other foreign institution engaging in banking activity, in case the foreign credit institution or other foreign institution engaging in banking activity is dissolved, bankrupt or their License is revoked or their operation is suspended by a competent agency of the country where their head office is located.