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No small banks to be closed
Nine small banks facing closure because they had inadequate charter capital have completed plans to increase funds to VND1 trillion (US$57.14 million) each, the State Bank has announced.
This means no banks will have to merge, close or be sold, as some feared.
The nine banks are De Nhat Bank (with VND609 billion ($34.8 million) in charter capital previously), Gia Dinh Bank (VND500b), Pacific Bank (VND566b), My Xuyen Bank (VND500b), PG Bank (VND500b), Kien Long Bank (VND580b), Viet Nam Thuong Tin Bank (VND500b), Dai Tin Bank (VND504b), and Dai A Bank (VND500b).
Many of the banks recently transformed themselves from small rural credit institutions to urban commercial joint-stock banks
Governor Nguyen Van Giau told reporters at a banking meeting in Ha Noi early last week that most of them had finalised plans to increase charter capital and that some were just waiting to complete administrative procedures.
Under Decree No. 141 issued by the central bank in 2006, all commercial joint stock banks had to have at least VND1 trillion in charter capital by December 31, 2008, and VND3 trillion ($171.43 million) by December 31, 2010.
Those who do not comply will be closed.
This central bank’s statement ensures that the total number of local banks in Viet Nam is still 38.
VNS
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