CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam c.bank to ease regulations on establishment of banks
Ngoc Thuy 11:46, 2018/08/06
The focus is on amending and removing a regulation on setting conditions for granting permits for the establishment and operation of joint stock commercial banks.
The State Bank of Vietnam (SBV), the country's central bank, has disclosed a draft circular simplifying administrative procedures and business conditions in the banking system at the government's request, including easing regulations on establishment of banks, VietnamFinance reported.
 
Illustrative photo.
Illustrative photo.
The focus is on amending and removing regulations stipulated in Article No.9 of Circular No.40, providing conditions for granting permits for the establishment and operation of joint stock commercial banks. 

According to the draft circular, the founding shareholders must together own at least 50% of charter capital of a would-be joint stock commercial bank, but they are no longer required to own "within five years from the date of being granted the license."

Concurrently, the SBV suggested removing regulation that founding shareholders, being either individuals or organizations, must have "financial ability to contribute capital to establish a joint stock commercial bank."

Notably, the SBV also removed three conditions for founding shareholders, including "take full responsibility for the legality of contributed capital source", "commit to support the joint-stock commercial bank in finance to solve problems in the case of joint stock commercial bank meeting difficulties of finance or liquidity", and "have at least two institutional founding shareholders as."

With regard to circular No. 30 providing regulations on issuance of licenses, organization and operation of non-bank credit institutions, the draft law also removes three conditions which are "have at least two institutional founding shareholders," "secure sufficient financial resources in order to establish non-bank credit institutions", and "undertake to provide financial support to non-bank credit institutions for difficulties in capital, solvency and liquidity".

The government has set target of removing 50% of total business conditions at all ministries and ministry-level agencies before October 31, which is part of the effort to achieve the goal of a market economy. 

Among government agencies, the Ministry of Industry and Trade and the Ministry of Health stood out as examples, by removing 55.5% and 70% business conditions, respectively. 

In a directive issued on July 13, Prime Minister Nguyen Xuan Phuc strictly prohibited government agencies and ministries from creating new business conditions or abusing specialized inspection.

According to the PM, business condition removal is one of the key measures for economic growth and efficiency, requiring strong efforts from government leaders and ministers. 

Phuc requested concerned ministries to submit proposals on reforming the specialized inspection process and simplifying business conditions before August 15. 
Comments
Other news
15:51, 2025/02/24
Vietnam set to have digital banks within financial centers
Credit institutions headquartered in these financial centers will not be bound by restrictions on to foreign ownership or foreign investment conditions when providing services there or across borders.
14:30, 2025/02/15
Hanoi expands cashless parking pilot program
Hanoi is advancing its efforts to integrate technology into urban management by expanding the pilot program for cashless parking payments throughout the city.
16:58, 2025/02/11
Prime Minister urges banks to prioritize economic support over profits
One of the key priorities for the banking sector is to support small and medium-sized enterprises (SMEs), as they generate a large number of jobs and contribute significantly to the economy.
17:23, 2025/02/07
Vietnamese Gov’t forecasts CPI growth of up to 4.5% in 2025
With the goal of at least 8% GDP growth, the money supply in the economy will be significantly larger than in 2024. This will have an impact on price indices, particularly consumer prices.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.