JJLL
03-29-2007, 10:18 AM
Requirements for setting up banks to be announced in April: Governor
16:57' 28/03/2007 (GMT+7)
VietNamNet Bridge – The State Bank of Vietnam (SBV) will announce the detailed requirements for setting up new banks in April instead of March as requested by the Government, SBV Governor Le Duc Thuy told the press this morning.
Investors rush to set up banks as bank shares are hot
Investors are rushing to establish new banks, while there is not an official legal document about the issue. How would you comment about the movement of bank establishment?
Soạn: HA 1068091 gửi đến 996 để nhận ảnh này
I can see two things from the movement. First, the banking sector proves to be a lucrative investment channel, as no one would inject money in an unprofitable field. Second, investors possibly do not think carefully when making investment. They rush to set up banks just because they find bank shares very hot. If they set up banks and sell shares, they can earn fat profit, VND5 for every VND1 of investment.
However, they have to know that the central bank also knows that very well, and does not intend to let investors earn fat profit just by setting up banks. The job of the central bank is to set transparent and strict regulations in order to ensure the sustainable development of the banking system. For example, only those who really want to be bankers can establish banks, because they would not be allowed to transfer shares within five years of the day of the banks’ establishment. Besides, investors must satisfy other strict requirements, including ones on business plans.
Experts have given warnings about money laundering by injecting money in the stock market and establishing new banks. What do you think about the warnings?
These things are possible. People may throw dirty money into the stock market to get legal money, and they want to show to the public that they earn money from the stock market, not from corruption deals. Competent authorities must consider carefully when they check the sources of assets and examine the transparency of assets. The central bank and I do not take the main responsibility in this job. My job is to run the centre for anti-money laundering, so as to avoid untransparent money remittance.
Please don’t think that people set up banks because they want to wash money. In principle, investors would make investment in where they find profitable. However, the management authorities still have to set up rules to avoid bad things.
The anti-money laundering centre was once put under the management of the SBV’s inspection agency. However, it has just been restructured and put under the direct control of SBV’s Governor so as to get bigger power.
SBV has received 8 applications for setting up banks in Vietnam
As far as I know, the Prime Minister has asked SBV to declare the requirements for setting up new banks in March. How far has the preparatory work for the declaration gone?
The draft regulation has been sent to relevant ministries to collect suggestions. I’m afraid that the official requirements could not be declared in March as the central bank has not received replies from the ministries. I think April would be more feasible.
Do you mean that the establishment of new banks will be delayed until the official document is enacted?
In fact, the establishment of new banks has been delayed for some time. We are moving ahead with the bank restructuring process. We have stopped the operation of 17 banks (by having licences revoked, allowing banks to be merged into others). Now there are 34 operational banks only, while the figure was 53.
As per WTO commitments, Vietnam will have to open the banking market to foreigners as of April 1. Has any foreign investor applied to set up a bank in Vietnam?
In fact, we have received 8 applications to set up 100% foreign owned banks in Vietnam. We have not licenced any new bank.
Do Minh
16:57' 28/03/2007 (GMT+7)
VietNamNet Bridge – The State Bank of Vietnam (SBV) will announce the detailed requirements for setting up new banks in April instead of March as requested by the Government, SBV Governor Le Duc Thuy told the press this morning.
Investors rush to set up banks as bank shares are hot
Investors are rushing to establish new banks, while there is not an official legal document about the issue. How would you comment about the movement of bank establishment?
Soạn: HA 1068091 gửi đến 996 để nhận ảnh này
I can see two things from the movement. First, the banking sector proves to be a lucrative investment channel, as no one would inject money in an unprofitable field. Second, investors possibly do not think carefully when making investment. They rush to set up banks just because they find bank shares very hot. If they set up banks and sell shares, they can earn fat profit, VND5 for every VND1 of investment.
However, they have to know that the central bank also knows that very well, and does not intend to let investors earn fat profit just by setting up banks. The job of the central bank is to set transparent and strict regulations in order to ensure the sustainable development of the banking system. For example, only those who really want to be bankers can establish banks, because they would not be allowed to transfer shares within five years of the day of the banks’ establishment. Besides, investors must satisfy other strict requirements, including ones on business plans.
Experts have given warnings about money laundering by injecting money in the stock market and establishing new banks. What do you think about the warnings?
These things are possible. People may throw dirty money into the stock market to get legal money, and they want to show to the public that they earn money from the stock market, not from corruption deals. Competent authorities must consider carefully when they check the sources of assets and examine the transparency of assets. The central bank and I do not take the main responsibility in this job. My job is to run the centre for anti-money laundering, so as to avoid untransparent money remittance.
Please don’t think that people set up banks because they want to wash money. In principle, investors would make investment in where they find profitable. However, the management authorities still have to set up rules to avoid bad things.
The anti-money laundering centre was once put under the management of the SBV’s inspection agency. However, it has just been restructured and put under the direct control of SBV’s Governor so as to get bigger power.
SBV has received 8 applications for setting up banks in Vietnam
As far as I know, the Prime Minister has asked SBV to declare the requirements for setting up new banks in March. How far has the preparatory work for the declaration gone?
The draft regulation has been sent to relevant ministries to collect suggestions. I’m afraid that the official requirements could not be declared in March as the central bank has not received replies from the ministries. I think April would be more feasible.
Do you mean that the establishment of new banks will be delayed until the official document is enacted?
In fact, the establishment of new banks has been delayed for some time. We are moving ahead with the bank restructuring process. We have stopped the operation of 17 banks (by having licences revoked, allowing banks to be merged into others). Now there are 34 operational banks only, while the figure was 53.
As per WTO commitments, Vietnam will have to open the banking market to foreigners as of April 1. Has any foreign investor applied to set up a bank in Vietnam?
In fact, we have received 8 applications to set up 100% foreign owned banks in Vietnam. We have not licenced any new bank.
Do Minh