The State Bank of Vietnam (SBV) has issued Document No. 2514/NHNN-TTGSNH approving the increase of the charter capital of Saigon-Hanoi Commercial Joint Stock Bank (SHB). Accordingly, the SBV has accepted for the SHB to increase its charter capital by VND 1,750,512,900,000 (One thousand seven hundred fifty billion, five hundred twelve million, nine hundred thousand Vietnamese dongs) in the form of stock dividends from the retained earnings in 2019.
Document No. 2514 also requires the SHB to increase its charter capital in accordance with the law, including compliance with the regulations on the ownership limits of the shareholders and the related persons of these shareholders as stipulated in the 2010 Law on Credit Institutions (as amended and supplemented in 2017) and other guiding documents of the SBV upon having completed the charter capital increase.
It is also stated clearly that the SHB is only allowed to increase its charter capital as mentioned after having completed the debt classification and risk provisioning for the loans of the BOT 38 Joint Stock Company according to Inspectors' Observation Note No. 44/KL-TTGS dated September 13, 2019 of the SBV-Bac Ninh provincial branch. In this process, the SHB is also required to comply with the provisions of the applicable laws and the SBV’s guiding documents.
Within a maximum of 10 working days from the completion of the issuance of the new shares in accordance with the laws, the SHB shall implement the procedures for amending and supplementing its Operation License as stipulated in Paragraph 4, Article 11 of Circular No. 50/2018/TT-NHNN dated December 31, 2018 stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks and foreign bank branches.
The Document shall be valid within 12 months from the date of its signing.
VA