• VIE CB proposed regulations for commercial banks whose shareholders and related parties shares exceed the limits prescribed by the Law on credit institutions 2024.
• Follows VIE PRL February 2024 approved the draft law on credit institutions.

Proposal

• Due to the Law on credit institutions 2024 changing the share ownership ratio of a shareholder or related person, and determination of related persons and indirect share ownership, revisions to the regulations are needed to incorporate these changes.
• Applies specifically to commercial banks excluding those under special control, outlining obligations and the steps required to align with shareholding regulations.
• Commercial banks must collaborate with stakeholders to draft, implement a plan that details steps to adjust shareholdings and comply with the legal limits by specified date.
• Banking Supervision Agency will monitor the implementation, and any necessary adjustments must be made within 30 days of receiving feedback from the agency.
• Shareholders and related parties cannot increase their shares or receive dividends in cash for shares that are held above the limit, until compliance has been achieved.
• Banks must regularly report compliance status to VIE CB, using specific format, within deadlines; banks, shareholders, related parties are legally responsible for accuracy.

Consultation Period

• The consultation is open but deadline has not been given.