Vietnam Central Bank Urges Local Lender to Raise Cap in 2010
The State Bank of Vietnam, the country’s central bank, has requested local banks to keep on right track with their registered capital hike plans in 2010 as instructed in the government’s Decree No. 141/2006/ND-CP dated 22 Nov 2006.
Commercial banks, excluding branches of foreign-invested ones, are required to have registered capital of at least VND3 trillion by the year-end and submit a plan to show how they are going to achieve this, no later than March 31.
In the plan, commercial banks have to report the results of increasing their registered capitals in 2009, a detailed plan for its own capital hike this year and suggest punishments if they fail to carry out the plan.
Municipal branches of the SBV will collect the banks’ reports to summarize them to send to the central bank by April 15.
Bankers forecast that capital increase in 2010 will be very difficult because none of small banks can manage to raise capital from VND1 trillion up to VND3 trillion. The tight liquidity in 2009 will continue in 2010.
In 2009, many joint stock banks raised chartered capital to as high as VND5 trillion-VND7 trillion, mainly the giants of ACB, Sacombank, and SeABank, while there were just a few banks trying to increase the capital to VND2 trillion.
Some are currently running with a chartered capital of about VND2.5 trillion -VND3.5 trillion. Those are SHB, Maritime Bank and VIB. (SBV)
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