Illustrative image (Source: Maritime Bank) Hanoi (VNS/VNA) - Businessconditions related to the establishment and operation of joint stock commercialbanks and non-bank credit institutions in Vietnam will be eased under adraft circular from the State Bank of Vietnam (SBV).
Accordingly, though founding shareholdersof a joint stock commercial bank will still have to own at least 50 percent ofthe bank’s charter capital, they will no longer need to hold the capital forfive years from the date of receiving the license as currently required.
The draft circular also removes regulations thatfounding shareholders, including both individuals and institutions, must havethe financial ability to contribute capital to establish a joint stockcommercial bank.
The circular also eliminates the oldrequirements that founding shareholders take full responsibility for thelegality of the contributed capital source; commit to giving financial supportto their joint-stock commercial banks to resolve problems in case their banksface difficulties of financing or liquidity; and have at least twoinstitutional founding shareholders.
As for regulations on the issuance of licenses,organisation and operation of non-bank credit institutions, the draft circularalso removes three conditions: having at least two institutional foundingshareholders, securing sufficient financial resources, and foundingshareholders being required to support their non-bank creditinstitutions through difficulties in capital, solvency and liquidity.
Standards for general directors of cooperativebanks are also eased under the draft circular. Now, there is no requirementthat people in this position have worked more than five years in the bankingindustry.
The draft revisions are part of the SBV’s plansto remove or simplify 257 business conditions under its management, which willrequire the SBV to revise eight decrees and 10 circulars.
According to the SBV, the revisions are aimed tosimplify business conditions and administrative procedures in the bankingindustry according to the Prime Minister’s instructions.
In a recent directive, Prime Minister Nguyen XuanPhuc noted that the removal of business conditions is one of the key measuresfor economic growth and efficiency. He instructed relevant ministries andagencies to submit proposals on simplifying business conditions and reformingthe specialised inspection process before August 15 this year.
The SBV said that it would further step upscrutiny to enable more revisions and simplification to make doing businesseasier in the fields under its management.-VNS/VNA
Accordingly, though founding shareholdersof a joint stock commercial bank will still have to own at least 50 percent ofthe bank’s charter capital, they will no longer need to hold the capital forfive years from the date of receiving the license as currently required.
The draft circular also removes regulations thatfounding shareholders, including both individuals and institutions, must havethe financial ability to contribute capital to establish a joint stockcommercial bank.
The circular also eliminates the oldrequirements that founding shareholders take full responsibility for thelegality of the contributed capital source; commit to giving financial supportto their joint-stock commercial banks to resolve problems in case their banksface difficulties of financing or liquidity; and have at least twoinstitutional founding shareholders.
As for regulations on the issuance of licenses,organisation and operation of non-bank credit institutions, the draft circularalso removes three conditions: having at least two institutional foundingshareholders, securing sufficient financial resources, and foundingshareholders being required to support their non-bank creditinstitutions through difficulties in capital, solvency and liquidity.
Standards for general directors of cooperativebanks are also eased under the draft circular. Now, there is no requirementthat people in this position have worked more than five years in the bankingindustry.
The draft revisions are part of the SBV’s plansto remove or simplify 257 business conditions under its management, which willrequire the SBV to revise eight decrees and 10 circulars.
According to the SBV, the revisions are aimed tosimplify business conditions and administrative procedures in the bankingindustry according to the Prime Minister’s instructions.
In a recent directive, Prime Minister Nguyen XuanPhuc noted that the removal of business conditions is one of the key measuresfor economic growth and efficiency. He instructed relevant ministries andagencies to submit proposals on simplifying business conditions and reformingthe specialised inspection process before August 15 this year.
The SBV said that it would further step upscrutiny to enable more revisions and simplification to make doing businesseasier in the fields under its management.-VNS/VNA
VNA
