On January 18, 2024, the National Assembly issued the Law on Credit Institutions 2024, which includes new regulations on share ownership ratio in banks effective from July 1, 2024, some The terms will take effect from January 1, 2025.
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Specifically, the Law on Credit Institutions 2024 strictly regulates the share ownership ratio in credit institutions as follows:
(1) An individual shareholder may not own shares exceeding 05% of the charter capital of a credit institution;
(2) An institutional shareholder may not own shares exceeding 10% of the charter capital of a credit institution;
(3) Shareholders and related persons of that shareholder may not own shares exceeding 15% of the charter capital of a credit institution. Major shareholders of a credit institution and related persons of that shareholder are not allowed to own shares of 05% or more of the charter capital of another credit institution;
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(4) Regulations in the Law on Credit Institutions 2024 do not apply to the following cases:
- Owning shares in subsidiaries and affiliated companies that are credit institutions specified in the Law on Credit Institutions 2024;
- Owning state shares in equitized credit institutions;
- Ownership of shares by foreign investors specified in the Law on Credit Institutions 2024.
(5) The share ownership ratio specified in the Law on Credit Institutions 2024 includes the number of indirectly owned shares. The share ownership ratio specified in the Law on Credit Institutions 2024 includes shares entrusted by shareholders to other organizations and individuals to buy shares and does not include share ownership of related persons. subsidiary of that shareholder according to the provisions of the Law on Credit Institutions 2024;
(6) Within 05 years from the date the credit institution is granted a License, founding shareholders must hold a minimum number of shares equal to 50% of the credit institution's charter capital; Founding shareholders who are legal entities must hold a minimum number of shares equal to 50% of the total shares held by founding shareholders;
(7) Foreign investors are allowed to buy shares of Vietnamese credit institutions. The government regulates the share ownership ratio for foreign investors.
Thus, the share ownership ratio compared to the Law on Credit Institutions 2010 has changed as follows:
- The ownership ratio of institutional shareholders decreased from 15% to 10%; shareholders and related persons reduced from 20% to 15%;
- Maintain the 5% ratio for individual shareholders;
- For foreign investors, the above provisions will not apply but will follow the Government's regulations.
See also the Law on Credit Institutions 2024, effective from July 1, 2024.
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