Investing Tools
Company A-Z
Company Search
Stock Screener
Portfolios
Technical Analysis
Live Terminal
Mobile Tools

Useful Links
My Profile
My Favorites
Thursday, February 09, 2012 5:28:06 PM - Markets closed
VN-INDEX 411.39 +1.86/+0.45%
HNX-INDEX 63.82 +0.08/+0.13%
UPCOM-INDEX 34.97 +0.22/+0.63%
SBV to review capital rules
sbv.gov.vn - 9/10/2010 10:45:00 AM
 (0 ratings. You must sign in to rate.)
The State Bank of Viet Nam will review new strict capital adequacy requirements imposed on commercial banks by Circular No 13, following an outcry from the banking sector and a directive from the Government.

The announcement late Wednesday helped boost shares on the nation's stock market yesterday.

The review and analysis of Circular No 13 would aim to address shortcomings in various risk management provisons, including the imposition of stricter capital adequacy ratios, the State Bank said.

A deadline for conclusion of the review was not disclosed. However, last month, Prime Minister Nguyen Tan Dung ordered the State Bank to review the circular and report its findings and possible solutions before the new regulations were scheduled to take effect on October 1.

Circular No 13 would require commercial banks to increase their capital adequacy ratios from 8 to 9 per cent, as well as impose other risk management measures.

For instance, the circular would restrict banks from lending out funds from non-term deposits made by the State or State entities, the social insurance fund or commercial lending organisations.

According to media reports, many commercial banks and the Viet Nam Banking Association complained that this last provision would require commercial banks to leave idle as much as 35 per cent of deposited funds. They urged the central bank to extend the deadline for complying with the circular in order to give banks more time to restructure investment portfolios.

Fiachra Mac Cana, managing director of the research department of HCM Securities Co, predicted that the review would not result in any significant changes to the requirements but would allow banks more time to comply and adjust loan and capital ratios.

A central bank official who asked to remain unnamed told Viet Nam News yesterday that Circular No 13 was indeed the opening salvo of what would be an ongoing programme of stricter risk management measures to be imposed on the nation's banking system.

Many economists, the official noted, have complained that the capital adequacy ratios in Circular No 13 were still too low to adequately guard against risk. The newly passed Law on Credit Institutions to take effect in January includes provisions stricter than those in Circular No 13, he noted, but still short of the Basel standards for finance and banking.
Newer News
17:06 Vietnam Bonds Gain as Central Bank May Take Steps to Boost Cash
14:10 Consumption interest rate persists at 20pct annually
13:56 Gold sinks below VND45 million as dollar declines
13:34 Techcombank's profit up 51.5 pct at 3.141tr dong in 2011
13:33 VDB's nineteen branches stopped from joining interbank payment system
11:40 Vietnam central bank should resolve liquidity of banking system in Q1
09:45 Feb 9: Vietnam c.bank keeps the US dollar exchange at 20,828 dong
09:30 Foreign Currency Credit Remains Attractive in 2012
08:50 Vietnam banks stop offering new property loans
08/02 Bac A Bank allowed to change its name
Older News
10/09 Vietnam 2010 Fiscal Deficit Likely Below 6% of GDP
10/09 Petrovietnam, foreign banks sign derivatives deals
09/09 Banks send mixed signals on forex
09/09 SBV releases credit growth data
09/09 Gold makes correction after climbing to all-time high
09/09 Lending in US dollar surpasses dong
09/09 Credit growth target unlikely to be achieved
09/09 US dollar/dong exchange rate may rise to 20,800 by late 2011: Standard Chartered
09/09 Banks ignore Govt's directive on interest rates
09/09 Jan-August credit growth at 15pct
 
Newsletter Signup
Top Stories
At least 5 banks to merge in first months of this year
Hochiminh Stock Exchange to launch VN30 Index from February 6
January CPI increases 1 percent
Hanoi’s CPI rises only 0.96 percent in January
January CPI predicted at 1%: NDHMoney
Market Update
Last updated at 11:01:33 AM
VN-INDEX 411.39 +1.86/+0.45%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.