THE SOCIALIST REPUBLIC OF VIET NAM
Government News
PM urges SBV to extend deadline for banks to raise charter capital
VGP – PM Nguyễn Tấn Dũng recently urged the State Bank of Việt Nam (SBV) to extend the deadline for banks to raise their charter capital to December 31, 2011.
Stronger financial capacity is an effective way to strengthen the safety of the whole banking system
Earlier, the Government issued Decree 141/206/NĐ dated on November 22, 2006, requiring banks to raise their charter capital in order to strengthen the financial capacity of the banking system.
The Decree is designed to secure safe and sustainable operation of the banking system, said an SBV official.
The banking system has quickly developed during the past years of renovation but most of banks are small-sized and may be vulnerable to the ups and downs of the market.
Additionally, objective reasons like the global financial crisis and economic downturn have prevented foreign partners from pouring money in the banking system and the Vietnamese banks themselves from raising capital through issuing shares.
Besides, the State-owned enterprises’ withdrawal of capital from banks as required by the Government to focus on their main business lines also caused difficulties for the banks whose stakeholders are the withdrawers.
By Hải Minh