The Governor of the State Bank of Vietnam (SBV) had just issued Document No. 5596/NHNN-VP to affiliated units, credit institutions, foreign bank branches on the implementation of the tasks in the last six months of 2020.
A noticeable content in the above document was the requirement to prepare for an increase in charter capital in the ‘Big Four’ group, about the mechanism and method.
Specifically, the above document required the focal point to urgently coordinate with relevant ministries and agencies to carry out procedures to increase charter capital for Vietnam Bank for Agriculture and Rural Development (Agribank) from the state budget; continue to deal with the increase in the charter capital of state-owned commercial banks ( Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).
The above document of SBV clearly stated that the capital increase direction for the above group was by payment of dividends in shares.
Regarding the mechanism, SBV said it would propose the Ministry of Finance to expeditiously submit to the government for promulgation a Decree amending and supplementing Decree 91/2015/ND-CP to have a basis for a capital increase for state-owned commercial banks; build a roadmap to increase capital for these banks from 2021 to 2026, including an increase in capital from the state budget to submit to competent authorities for approval.
