Vietnam easing limits on foreigners owning banks

The State Bank of Vietnam issues a draft decree that would allow foreigners to take majority stakes in local banks “case by case”.
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Vietnam: The government is keen to upgrade its banking industry
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<div style="text-align: left;"> Vietnam: The government is keen to upgrade its banking industry </div>

Capital-hungry Vietnam is further opening the door to foreign ownership of its banks.

Local brokers report that the government, announced through a State Bank of Vietnam circular, has issued a draft decree that would allow the prime minister to let foreigners take strategic stakes in banks beyond 30%, on a case-by-case basis.

Such “foreign strategic partners” to local purveyors of credit must be a financial institution with at least $20 billion in total assets and should own less than 10% of another bank in Vietnam.

The proposal would also ease rules about local banks selling shares, which currently require them to have no more...

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