Many Banks Increase Charter Capital

Despite huge economic turmoil, commercial banks have sharply raised their charter capital according to a proven route. Recently, the State Bank of Vietnam (SBV) released documents approving the Commercial Bank of Industry and Trade (Vietinbank) to increase its charter capital for the second time in 2011, from VND 16,858 billion to VND 20,230 billion, through issuing shares to current shareholders.

 

Before that, SBV received and ratified proposals of many banks to increase their charter capital. Techcombank raised its charter capital from VND 6,932 billion to VND 8,788 billion from its remaining undistributed profits and reserve funds for the purpose of supplementing the charter capital. VPBank was also accepted to increase its charter capital from VND 4,000 billion to VND 5,050 billion. Export and Import bank (Eximbank) increased its charter capital from VND 10,560 billion to VND 12,355 billion from surplus equity. Tin Nghia Bank increased its charter capital from VND 3,399 billion to VND 4,588 billion. Financial joint stock company Handico was also approved to raise its charter capital from VND 350 billion to VND 550 billion through private placement to current shareholders.

 

Besides raising the amount of capital, restructuring the banking system is also expected to increase competitiveness, safety, health, and stable developments for the entire system.