VietNamNet Bridge – The regulation that the assignment of more than 20% of bank shares must be approved by the State Bank of Vietnam has been hindering investors from making transactions.
Mrs Nga, an investor, said that she bought 200 Eximbank shares at the end of January. The staff of Eximbank’s management board’s office told her to come back on March 6 to get the shareholder book. However, she could not get the book on March 6 and she was asked to return in early April.
Other investors also complain that they face big difficulties in procedures when buying bank shares.
Under the current regulations, commercial banks must get approval from the central bank for the assignment of more than 20% of bank shares.
A staff from a commercial bank said that within three months, the shareholders of the banks transferred a volume of shares equivalent to 40% of the chartered capital of the bank. Commercial banks have to wait and get approval from the central bank for the transfer of more than 20% of bank shares. Staff from the State Bank of Vietnam will come to check documents of the assignments, and that always takes two or three weeks. While the central bank is still checking the deals, shareholders have enough time to make other deals, and this is a vicious circle.
Under Decision 1122 dated September 4, 2001 by the State Bank of Vietnam, branches of SBV, where commercial banks are located, must examine the share transfer and release the document on whether to approve the transfer deals within 15 days after the day of receiving files about the share transfer.
The chairman of a securities company said that the regulation on examining the bank share assignments proved to be unnecessary. In fact, the regulation is applied for unlisted banks only, while not for the two listing banks, and the two banks have been operating well. He said that the trading of bank shares would get stuck due to complicated procedures.
(Source : Viet Nam Net)
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