The new regulation is intended to provide guidance on Article 38 of the 2024 Law on Credit Institutions and to align the authority for licensing the establishment of microfinance institutions' network units with the government's policy on decentralization and administrative procedure simplification.
Circular No. 19/2025/TT-NHNN will take effect on September 15, 2025. The circular is composed of 36 articles divided into seven chapters, as follows:
Chapter I (Articles 1-10): Covers the scope of regulation, subjects of application, interpretation of terms, and authority for approving the microfinance institution's network. It also addresses transaction points, the operational content of non-business units, the location, operations, and names of branches and transaction offices, the number of branches and transaction offices, principles for preparing and submitting applications and notifications, and regulations for managing branches, transaction offices, and transaction points.
Chapter II (Articles 11-18): Specifies the conditions, application dossiers, and procedures for establishing branches, transaction offices, representative offices, and non-business units of microfinance institutions, as well as the procedures for opening and publicizing their operations.
Chapter III (Articles 19-23): Regulates changes to the name and location of the headquarters of branches, transaction offices, representative offices, and non-business units. It also covers changes to the managing branch of a transaction office and the public announcement of these changes.
Chapter IV (Articles 24-28): Outlines the conditions for automatic termination of operations, dissolution, voluntary termination of operations, and forced termination of operations and dissolution of branches, transaction offices, representative offices, and non-business units. It also addresses the public announcement of these terminations and dissolutions.
Chapter V (Articles 29-30): Governs the provision of information from microfinance institutions to the State Bank and the State Bank's notification to business registration agencies.
Chapter VI (Articles 31-33): Details the responsibilities of microfinance institutions, the State Bank's provincial branches, and other relevant units within the State Bank.
Chapter VII (Articles 34-36): Contains provisions on transitional arrangements, entry into force, and implementation.
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