Five Vietnam Banks Unlikely to Raise Cap to VND3T by End-2010
At least five commercial banks will fail to boost their registered capital to VND3 trillion in 2010 in line with the government’s Decree No. 141, according to an expert from the Vietnam Banks Association (VNBA).
Truong Dinh Song, deputy head of the Legal Department of VNBA, said only 10 out of 23 undercapitalized banks have submitted plans to increase chartered capital to SBV.
The remaining banks still have no plan and five of them are thought to be unable to meet terms of the decree, he noted.
“This is a blunder of Decree 141 because it is unreasonable in a country where banks are subject to the same minimum required capital. This does not fit their corporate governance capability,” Song complained.
Song remarked that, in other countries, there are regional banks, state’s banks and national banks. In Vietnam, all banks are urban, and all are ‘multifunctional and modern’, while they are still not capable of becoming modern banks.
The State Bank of Vietnam has insisted on the decree, saying that it will not extend the deadline for local undercapitalized banks to boost registered capitals.
Those who fail to raise cap to the required level must be resolved on the basis of ensuring interests of shareholders and customers.
Twenty three out of total 44 state-owned and joint stock commercial banks in Vietnam currently have registered capital of less than VND3 trillion, including 11 lenders operating with the modest capital of VND1 trillion each. (VnEconomy)
Vietnamese
