State-owned banks set to increase charter capital
State-owned banks set to increase charter capital
The State Bank of Vietnam (SBV) has announced Decision No.422/QD-NHNN dated March 18 outlining its action plan for the next two years.
One of the SBV’s key roles is to boost charter capital for joint-stock commercial banks in which the state owns more than 50 per cent of the capital. These include Vietcombank, VietinBank, BIDV, and Agribank.
The capital increases are to be funded from post-tax earnings, allocations for state-owned joint-stock commercial banks, and from the state budget for Agribank.
Last year, the four banks received permission from the SBV to expand their charter capital. Specific changes include an extra $152.2 million for Agribank and approving VietinBank, Vietcombank, and BIDV to pay dividends on shares at a higher rate.
The SBV will closely monitor banking activities to guarantee the safety of the system and implement appropriate measures to deal with any bad debts.
