Organizations Not Allowed to Borrow Money to Set up Banks

Economic institutions must not borrow money from any sources except for their own legal capital to set up their banks, according to the Government’s draft decree on organization, management and operation of commercial banks.

 

Under the draft, which is launched at website www.chinhphu.vn for public opinion poll, an applicant for a bank establishment must have minimum chartered capital in Vietnam dong equal to legal capital as regulated by the Government in each period. The capital must not come from any borrowings.

 

Board of directors must have at least three members and three fourth of these members must have university qualifications. The board must set up at least two committees, including one for risk management and another for personnel.

 

The State Bank of Vietnam, or central bank, is authorized to grant operational licenses for the establishment of new banks. (Pioneer, Government’s Website)