Vietnam to Further Control Banks Capital Hikes
The State Bank of Vietnam (SBV), the country&rsquos central bank, will tighten control over the increase in registered capital of joint stock commercial banks.
The SBV has just amed the regulation on shareholder, stake and registered capital of joint stock banks, in which banks must show the scheme of capital increase approved by shareholders and the demand for the hike.
Joint stock banks have to point out how much capital to raise and how many times of issuance. They are also required to prove efficiency of operation based on the increased capital and to show growth of assets, credit, deposits, borrowings and profitability.
Lers have to evaluate governance, management and control of the board of directors and managers and internal control tem upon the new capital scale.
The SBV asked its branches in provinces and cities to appraise and evaluate the capital hikes of joint stock banks and supervise their operations.
Over the past two years, joint stock banks have been racing to raise their registered capital in order to expand business and improve competitiveness.
According to the Decree 141/2006/ND-CP dated November 22, 2006, joint stock and joint venture banks are required to boost their registered capital to at least VND1 trillion by the of 2008 and VND3 trillion by 2010. (Chinhphu.vn)
Vietnamese
