Vietnamlawmagazine

In order to repress unfair competition and interest disputes among credit institutions and ensure the financial capacity of founding shareholders, from February 1, 2012, the minimum asset value required to found a new bank will jump to VND 100 trillion, doubling the current level.

Under the State Bank of Vietnam’s Circular No. 40/2011/TT-NHNN of December 15, on licensing, organization and operation of commercial banks, foreign bank branches and representative offices of foreign credit institutions in Vietnam, founding shareholders of any new bank cannot concurrently be founding shareholders or owners of strategic shareholders of another credit institution in Vietnam.

All founding shareholders of a new bank must have fully made obligatory tax and social insurance payments and profitably operated for the last five consecutive years, instead of three years as at present.-