Vietnam: Small Banks Complete Registered Capital Hike to VND1 Tln

The State Bank of Vietnam (SBV), the country’s central bank, has said on its website that nine small banks which face closure because of inadequate registered capital have completed plans to increase funds to VND1 trillion (US$57.14 million) each.

 

This means that no banks will have to be merged, closed or be sold as some feared earlier.

 

The nine banks are VND609-billion De Nhat Bank, VND500-billion Gia Dinh Bank, VND566-billion Pacific Bank, VND500-billion My Xuyen Bank, VND500-billion PG Bank, VND580-billion Kien Long Bank, VND500-billion Vietnam Thuong Tin Bank, VND504-billion Dai Tin Bank, and VND500-bilion Dai A Bank.

 

Many of the banks recently transformed themselves from small rural credit institutions to urban commercial joint stock banks.

 

Under the requirement, all joint stock banks must have registered capital of at least VND1 trillion by December 31 of 2008 and VND3 trillion by the end of 2010.

 

Currently, Vietnam still has a total of 38 commercial banks which all have capital of over VND1 trillion. (SBV, Vietnam Economic Times)