4:29:33 PM | 12/8/2008
Prime Minister Nguyen Tan Dung has just directed the State Bank of Vietnam, the country’s central bank, to cancel licensing new commercial joint stock banks.
SBV said last week on its Web site that it will stop handling dossiers of establishment of new banks until it readjust regulations by setting new criteria.
The government’s move stems from evidence of small-sized bank’s weak financial capacity, the Vietnam Investment Review said.
The central bank should take time to readjust current regulations relating to financial capacity and governance issues, a government official said.
“In terms of registered capital of a new bank fixed at VND1 trillion (US$62.5 million) in 2008, it may be rather low, and would be raised to ensure the local bank’s capacity to compete with foreign wholly incorporated bank,” the official said.
“The adjustment will be completed soon in order to create fair competition between local and 100 per cent foreign-invested incorporated banks to be licensed in Vietnam once the Asean country further opens its banking sector,” he noted.
These adjustments will lead local banks to look at M&A tends, he added.
So far the central bank has received 23 dossiers asking for establishing a new bank, and it has agreed in principle for ten including Ngoi Sao Vietnam, Dong Duong Thuong Tin, Nang Luong, Ngoai Thuong Chau A and Bao Tin banks, the newspaper said. (SBV, VIR)
Vietnamese
