Standards on the Opening of Branches or Service Points

Banque de la République d’Haïti (BRH) 61 STANDARDS REGARDING THE OPENING OF BRANCHES OR SERVICE POINTS OF SAVINGS AND CREDIT COOPERATIVES (CECs) Pursuant to Articles 29 and 30 of the Act of June 26, 2002 on savings and credit cooperatives, these entities must comply with the following provisions regarding the opening of branches or service points.

1. All CECs must submit to the National Council of Cooperatives (CNC), which will forward them to the BRH for opinion, the proposals for opening new branches or service points. Applications must be submitted four (4) months before the planned opening date.
2. After obtaining the favorable opinion of the BRH and the authorization of the CNC, the CEC has four (4) months to commence operations of the new branch or service point unless otherwise provided by the BRH as stipulated in point 3 of this circular. In the event of non-compliance with this deadline, a new authorization must be requested.
3. One (1) month before the planned opening date, the CEC must send a report to the BRH on the process for opening the branch or service point.
4. Any advertising related to the opening of a branch or service point may only occur after authorization by the CNC based on a favorable opinion from the BRH.
5. All authorization requests for the opening of new branches or service points must be accompanied by the following documents: a. Resolution of the general meeting authorizing the opening of a new branch b. If the CEC is federated, a favorable opinion from the Federation to which it is affiliated c. A business plan including in particular the following elements:
6. Profile of the CEC (mission, vision, objectives, up-to-date financial reports, internal and external environment)
7. Branch:
8. Location and accessibility of the branch or service point
9. Socio-economic data
10. Products and services offered
11. Target market
12. Competition
13. Investment budget
14. Profitability analysis (financial projections over 3 years)
15. When analyzing an application file for the opening of a branch or service point, the BRH takes into account in particular the following elements: Ø Degree of adequacy of the CEC's net equity to its commitments; Ø Human and material resources enabling sound management of the branch or service point activities Ø Any other element allowing an assessment of the appropriateness of establishing the branch or service point, considering the balance of the banking system in the country's financial inclusion and the network of branches or service points across the national territory
16. The CEC is required to inform the BRH and the CNC of any modification affecting the existence or operation of the branch or service point, including any event likely to change the elements considered during the file analysis.

Banque de la République d’Haïti (BRH) 62 8. The decision to close a branch or service point must be communicated to the BRH and the CNC at least ninety (90) days before the cessation of operations with the public. This decision must be justified by the CEC. 9. Following the closure of a branch or service point, the CEC must remove all advertising posters or any other visible signage indicating the existence of the branch or service point. Sanctions Should a CEC fail to comply with the provisions of this circular, the BRH may compel the cooperative to close the relevant service point or branch within a period not exceeding six (6) months. If a CEC decides to close a branch or service point without BRH authorization, the BRH reserves the right to impose administrative sanctions in accordance with Articles 139 and 140 of the Act of June 26, 2002. Administrative sanctions imposed by the BRH must be addressed at the CEC's annual general meeting, pursuant to Article 43, paragraph g, of the Act of June 26, 2002. Entry into Force of this Circular The provisions of this circular shall enter into force on _______________________ Port-au-Prince, on __________________2008 Charles CASTEL Governor