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Vietnam Business » Vietnam Economic News » Capital rules mean banks have to $ 1.56bil in four months to win

Capital rules mean banks have to $ 1.56bil in four months to win

Since the end of last month, 23 banks had their plans for the State Bank of Vietnam (SBV) to be presented to increase their capital on a map VND3 trillion (U.S. $ 156,250,000) this year, according to new rules.

However, the plans require the banks VND30 trillion (1.56 billion U.S. dollars to attract) in new investments over the next four months, which seems not easy for listed banks in an extended period of restrictive monetary policy. The central bank already has the plans of the Mekong bank, Dai A Bank, Ficombank, Viet A Bank, SaigonBank, Tien Phong Bank, Southern Bank and VP Bank, while the rest should get the nod to raise capital this month approved an average of VND1 .55 trillion ($ 80,700,000), with an average of VND3.5 trillion ($ 182,300,000) "It is very important to closely monitor the process of licensed banks in the charter capital," said the State Bank of Vietnam Governor Nguyen Van Giau. "Ill see how they sell shares in order to seek the public or to strategic investors." Giau has also ordered banks to make monthly progress reports. The higher chartered capital regulations adopted four years ago, but in May this year, 23 of the 42 banks were chartered under section VND3 trillion ($ 156,250,000). The central bank has agreed to merge the banks or the power, with larger institutions, if they do not meet the demands of the capital at the end of the year to close. Deadline is relied Dai A bank on the support of the controlling shareholder, Tin Nghia Group. Navibank, West Bank and Gia Dinh Bank is also looking for support from major stakeholders such as the Vietnam Textile and Apparel Group (Vinatex), Sai Gon Investment Group and Vietcombank. Small banks compete for available funds and large banks with listings on stock exchanges. "Big banks such as Vietcombank, Vietinbank, Asia Commercial Bank, Eximbank Sacombank plan and all the charter capital, and is more likely to win easy money from small banks," said a representative of a known HCM City-based bank called his name be withheld. However, he stated, "The stock market is bleak. This is a challenge for them." The SBV previously extended the deadline for commercial banks to meet higher capital requirements. Commercial banks were required by law to sign up capital of at least VND1 trillion ($ 52,000,000) by the end of the year 2008 but only 28 banks meet the requirement within the deadline. 10 more banks are only able to do justice to him by the end of 2009, met at the Central Bank for approval delay. This time, however, said the SBV, the period is hard-and-fast. Complicating the picture is the anticipated introduction of more stringent requirements under which commercial banks have capital of VND5 trillion ($ 260,420,000) at 31 December 2012, and VND10 trillion ($ 520,830,000) 31 registers December 2015. The policy objective is to eliminate the weakest banks, the general quality and safety to increase the financial system.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

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