Vietnam to Issue Bank Startup Rules
State Bank of Vietnam is likely to issue regulations in April for establishing new banks, since 10 applications have been received, Le Duc Thuy, the SBV governor said.
Though Prime Minister Nguyen Tan Dung wanted them announced this month, it is likely to be delayed, Thuy said, adding that a rush to establish commercial banks to issue shares and capitalize on the booming stock market is being witnessed.
“We know about that and will not let them take advantage,” Thuy assured, noting strict and transparent rules were in place to ensure stable banking system development – including banning the sale of banks within five years of establishment.
Thuy admitted much money flowed out of banks and into the stock market recently, forcing them to increase interest rates in the long term, affecting economic growth. But he assured that they were awash in liquidity now.
He also assured money was not being laundered through the securities market, saying the Anti-Money Laundering Center kept a close eye on it.
Vietnam also received eight applications to open 100 per cent foreign-invested banks, but has yet to issue any licenses. Under WTO agreements, the ban on wholly foreign banks will be lifted from April 1. (Thanhnien Online)
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