Banks get VND1tril in chartered capital ahead of schedule

It is very likely that joint stock banks will fulfill the plan to raise the chartered capital to VND1tril before the end of 2008.
The State Bank of Vietnam has inspected the implementation of the plan on raising chartered capital to meet the regulation on required minimum legal capital of VND1tril ($62.5mil) by the end of 2008.
Several banks have completed the raising of chartered capital to VND1tril, the level required for the deadline of the end of 2008. Other banks are moving ahead with their plan to raise chartered capital and they are likely to fulfill the plan by the end of 2007, ahead of schedule.

According to the central bank, by May 30, 2007, 12 joint stock banks had had the chartered capital exceeding VND1tril, while 22 other banks still had the capital below VND1tril. None of the joint venture banks could reach the required VND1tril level, while 33 foreign bank branches had more than $15mil in capital as required on bank branches, and two other had the capital below the level.

The central bank said that the joint stock banks that have not raised enough capital to meet the required level yet, all plan to raise capital within 2007.

Under the Decree 141, the minimum legal capital required on state owned banks is VND3tril ($187.5mil), joint stock banks VND1tril ($62.5mil), foreign bank branches ($15mil), the banks for social policies VND5tril ($312.5mil), investment banks VND3tril ($187.5mil), development banks VND5tril ($312.5mil), cooperation bank VND1tril.

The banks and non-bank credit institutions, if they cannot meet the requirements on minimum legal capital, will have to be either merged into other banks, or have their licenses revoked.

Source: VNE