Banks face charter capital difficultiesState-owned banks are finding it more difficult to increase charter capital, especially when they still have to pay dividends instead of keeping the money for this purpose. Of the total dividend, State capital representative State Bank of Viet Nam, which holds 64.46 per cent of VietinBank’s charter capital as of June 30, 2017, will receive VND1.68 trillion. SBV is also the largest shareholder of Vietcombank, owning more than 2.77 billion shares, or 77.1 per cent of the bank’s charter capital. However, the banks will face difficulties as they cannot keep the money to increase charter capital to meet BASEL II standards as regulated by the central bank. Therefore, banks will face more challenges to increase the capital as they still have to pay dividend.

Source: VietNamNet News September 30, 2017 04:18 UTC