Vietnam to tighten regulations on bank branch openings

The State Bank of Vietnam is now creating regulations on procedures for establishing, changing the names and/or location and ending operation of a banking branch.

Sources familiar to the case said new regulations are stricter.

An unnamed deputy CEO of a commercial bank said SBV currently stops granting approval for opening new branch as the draft Circular is being built and the central bank is stick to tougher regulations on this.

SBV is said to strictly control credit expansion in line with economy growth target. Also, banks under forced M&As will not have demand for expansion and banks now focus on providing banking services based on modern technology rather than the “single bread-winner” credit.

The SBV governor has just sent documents to SBV’s branches in Binh Dinh, Cao Bang, Binh Thuan, Tay Ninh, Binh Phuoc provinces about confirmation of opening branches of banks in the areas, requesting SBV’s branch directors to explain and seriously review their confirmation without the Governor’s instruction.

For more.

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