Minimum capital requirements for banks to go up even further

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The State Bank of Vietnam plans to issue a new decree requiring a minimum capital of VND5 trillion (US$263.8 million) to establish a bank from 2012 onwards, local news website VnExpress reported Saturday.

The minimum capital requirement will be further doubled in 2015, it said. 

According to the central bank, the new requirements are proposed based on safety standards for credit institutions.

Local banks have posted 25-30 percent growth in assets in recent years and they need to either raise their capital or restrict asset growth, the VnExpress report said.

The government has required commercial banks to raise their registered capital to at least VND3 trillion by December this year, which is triple the current minimum level of VND1 trillion. There are nearly 40 banks in the country and half of them have not met this requirement yet, it added.

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