Headlines 11/06/2022 10:35 SA

Charter capital to be maintained by credit institutions by 2025 in Vietnam

Trung Tài

On June 08, 2022, the Government of Vietnam promulgated Decision No. 689/QD-TTg approving Project "Restructuring of the system of credit institutions in association with settlement of bad debts in the period of 2021-2025”.

According to the Decision, credit institutions (CIs) in Vietnam must have measures to maintain their charter capital by 2025 as follows:

- For operating CIs (excluding commercial banks (CBs), financial companies (FCs) and finance leasing companies (FLCs)) that are weak/ under special control/undergoing restructuring plans approved by competent authorities):

+ For CBs:

Groups of CBs in Vietnam that have financial potential, competitive capacity and large scale: minimum charter capital is VND 15.000 billion;

Groups of CBs in Vietnam that have financial potential, competitive capacity, small and medium scale and foreign investment: minimum charter capital is VND 5.000 billion;

+ For FCs: minimum charter capital is VND 750 billion;

+ For FLCs: minimum charter capital is VND 450 billion.

- For CBs, FCs and FLCs that are weak/ under special control/undergoing restructuring plans approved by competent authorities: capital raising plans must be approved by competent authorities.

Decision No. 689/QD-TTg comes into force from the day on which it is signed.

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