Small Banks Asked to Report about Capital Hike Plans
The State Bank of Vietnam, the country’s central bank, has asked its branches in provinces and cities to report about the plans to increase registered capital by small joint stock banks.
Commercial banks with registered capital of less than VND1 trillion must inform their plans and roadmaps for the capital increase and difficulties in the implementation.
The SBV’s local branches are asked to evaluate the feasibility and give banks instructions for capital hikes.
Under the Decree No.141/2006/ND-CP dated Nov 22, 2006, joint stock commercial banks are required to have registered capital of at least VND1 trillion by the end of 2008 and VND3 trillion by 2010.
Though banks have been racing to raise their registered capital, some still face difficulties due to plunging stock market this year. (Vietnam Economic Times)
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