New regulation reduces cross-ownership in banksCross-ownership in banks has decreased sharply after the banks recently changed their top leaders at the 2018 annual general meetings of shareholders (AGMs) to meet the central bank’s new regulation. According to banking expert Can Van Luc, many bank leaders had to resign as chair of the Board of Directors (BoD) or CEO of business firms to manage banks. Meanwhile, some business owners also had to give up the chairmanship of banks to meet the requirement of the new law. Prior to the central bank’s new regulation, it was a popular practice for a person to both own a bank and a business firm. Besides, Luc said, cross-ownership in banks is also better controlled as many banks have recently listed on the stock markets.

Source: VietNamNet News May 28, 2018 01:18 UTC