Vietnam's Central Bank Revamps Rural Bank

The State Bank of Vietnam has allowed the establishment of Vietnam Thuong Tin Commercial Bank (Vietbank) based on resuming the operation of Phu Tam Rural Commercial Bank.

 

Vietbank has chartered capital of VND200 billion ($12.5 million) with a duration of 50 years.

 

Vietbank is permitted to receive deposits from individuals, institutions and other credit organizations; issue certificates of deposit, bonds and other valuable papers; receive trust funds from domestic organizations; borrow loans from the central bank and other credit institutions; and lend and supply payment services.

 

Reportedly, the government’s Decree No.141 regulating chartered capital levels of credit institutions in Vietnam forces all joint stock, joint venture and foreign invested banks to have a chartered capital of VND1 trillion by 2008 and VND3 trillion by 2010. Institutions that do not satisfy the demands of the roadmap may lose their license.

 

State-owned commercial banks must reach a chartered capital level of VND3 trillion by 2008.

 

Joint stock commercial banks may face more difficulty mobilizing capital, as their state-owned counterparts will receive additional funding from the government. Vietnam Economic Times, VNS