No small banks to be closed

Hanoi (VNA) - Nine small banks face closure due to inadequate charter capital have
completed plans to increase funds to 1 trillion VND (57.14 million USD) each, the
State Bank has announced.

This means no banks will have to merge, close or be sold, as some feared.

The nine banks are De Nhat Bank (with 609 billion VND (34.8 million USD) in
charter capital previously), Gia Dinh Bank (500 billion VND), Pacific Bank (566
billion VND) My Xuyen Bank (500 billion VND), PG Bank (500 billion VND), Kien Long
Bank (580 billion VND), Vietnam Thuong Tin Bank (500 billion VND), Dai Tin Bank
(504 billion VND), and Dai A Bank (500 billion VND).

Many of the banks recently transformed themselves from small rural credit
institution to urban commercial joint-stock banks.

Governor Nguyen Van Giau told reporters at a banking meeting in Hanoi early
last week that most of them had finalised plans to increase charter capital and
that some were just waiting to complete administrative procedures.

Under Decree No. 141 issued by the central bank in 2006, all commercial
joint-stock banks had to have at least 1 trillion VND in charter capital by Dec.
31, 2008, and 3 trillion VND (171.43 million USD) by Dec. 31, 2010.

Those who do not comply will be closed.

This central bank's statement ensures that the total number of local banks in
Vietnam is still 38.-Enditem