Banks reminded of deadline for meeting capital requirement

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The State Bank of Vietnam on Friday ordered local commercial banks to follow strictly the schedule to raise their capital and meet the higher requirements set by the government.

The order came with a few more weeks to go before the deadline. All banks have been asked to raise their capital to at least VND3 trillion (US$158.7 million) by the end of this year, triple the current minimum. The measure is said to be aimed at ensuring the safety of financial institutions.

According to the central bank, all 22 banks that need to increase their capital have submitted plans and all of them have been approved. Half of these banks have also received approval from the State Securities Commission to sell their shares while the rest are completing the paperwork to get permission.

The central bank has ordered its branches to supervise the capital hike process of commercial banks closely. Partly-private banks must report the status of their plan every week to the central bank branches.

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