Local Banks Capitalizing over US$31.6Mln Allowed to Sell Stakes to Foreign Banks
Domestic joint stock commercial banks with registered capital of VND500 billion (US$31.6 million) or over will be able to sell their shares to foreign partners, according to a draft decision by the Government.
Besides the large amount of capital, local credit institutions must have a sound financial status, effective administrative, management and inspection bodies.
The draft also regulates that 500 leading foreign banks in the world with stable credit rating will be enabled to buy stakes in the Vietnamese banks.
The foreign credit organizations must pledge to provide the domestic banks with financial assistance, banking technology, administration and operations.
Under the current regulation, foreign ownership in a local joint stock bank is allowed to account for a maximum of 30 per cent of total shares, while each foreign investor is allowed to hold 10 per cent at most.
Vietnam has seen three foreign banks acquiring stakes in domestic banks.
The Australia and New Zealand Bank (ANZ) bought 10 per cent of the Sacombank’s stakes, the Standard Chartered acquired 10 per cent of the Asian Commercial Bank’s stakes and the Hongkong & Shanghai Banking Corporation (HSBC) purchased 10 per cent of Techcombank’s stakes.
Vietnam Economic Times
Vietnamese
