Thumbs up for foreign bank capital expansions

February 16, 2011 | 14:00

(0) user say

The number of foreign bank branches receiving State Bank of Vietnam’s approval to increase their registered capital to support their credit operations in Vietnam has kept increasing.

illustration photo

The central bank on February 14 announced its approval to foreign bank branches comprising Huanan Commercial Bank Ltd, Deutsche Bank AG and Oversea-Chinese Banking Corporation to raise their registered capital in the first week after the Lunar New Year holiday.

Of which, Huanan Commercial Bank branch in Ho Chi Minh City will increase its registered capital to $65 million from $15 million, Deutsche Bank AG Ho Chi Minh City branch to $50.08 million from $24 million and OCBCHo Chi Minh City branch from $19 million to $25 million.

Previously, Chinatrust Commercial Bank was permitted to increase chartered capital from $15 million to $50 million. The Ho Chi Minh City and Hanoi branches of the Mizuho Corporate Bank Ltd. were also allowed to increase charter capital from $15 million to $133.5 million.

Currently, Vietnam is home to 51 foreign bank branches. Under Vietnam’s commitments to the World Trade Organization, from January 1, 2011, foreign bank branches will be allowed to enjoy full national treatment to mobilise deposits in dong from Vietnamese citizens with which the banks do not have credit relationship.

Currently, foreign bank branches play a crucial role in providing onshore financing for foreign direct investors, infrastructure projects and many of the local industries in Vietnam.

By Van Anh

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional