State Bank Asked to Issue Draft Decree on Bank Establishment

Prime Minister Nguyen Tan Dung sent Tuesday a dispatch to the State Bank of Vietnam (SBV), or central bank, asking it to submit a draft decree on the management, organization and operation of commercial banks.

 

Accordingly, the SBV will issue criteria, conditions and procedures for the establishment of new commercial banks, opening new branches and increasing registered capital.

 

The central bank is entrusted to give these permissions to new banks.

 

The PM has also asked the SBV to license banks of World Trade Organization member countries to operate in Vietnam.

 

Foreign banks will be licensed to open representative offices, set up joint ventures or wholly foreign-owned banks in Vietnam, or buy shares from local joint stock commercial banks in line with Government Decree 22/2006/ND-CP and the country's international commitments.

 

The SBV will promptly implement essential tasks to further develop banking operations in a safe and sustainable manner in the context of international economic integration.

 

Violations must be strictly and publicly punished in order to prevent corruption in the banking system, particularly in licensing the establishment of commercial banks, the opening of representative offices, the increase of chartered capital, and the purchase of shares of local commercial banks by foreign investors. (Vietnam Economic Times, VNA)