Vietnam Requests 21 Small Banks to Raise Cap to VND2T This Yr
The State Bank of Vietnam, the country’s central bank, has requested as many as 21 small-sized joint stock and joint venture banks to raise their registered capital to VND2 trillion (US$118.3 million) by late this year.
The SBV is seeking OK from the prime minister as part of its plans to requiring domestic banks to have registered capital of at least VND3 trillion by the end of 2010 ensure safer, better-performing larger-scale credit institutions.
It deals with merger and acquisitions by state-owned banks, joint-stock banks, joint-venture banks, foreign banks and co-operative banks.
The central bank has been collecting public views as to what to do about the country’s struggling banks since late February.
As a result, poor-performing credit institutions seem destined to merge, liquidate or be acquired by the central bank if their possible collapse was to threaten the banking system.
Up to nine small banks in danger of closure late last year because they each had a registered capital of less than VND1 trillion (US$57.47 million) have managed to raise enough money to stay open.
At present, Vietnam has 40 partly-privatized and joint stock banks; four state-owned banks; one bank for social policies; one for development; two wholly foreign-owned banks; five join venture banks and about 40 foreign bank offices. (VNA)
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