The State Bank of Vietnam (SBV) issued Document No.7414/NHNN-TTGSNH on September 15 to permit Sai Gon - Hanoi Joint – Stock Commercial Bank (SHB) to increase its charter capital to VND 12,036,285,680,000 from VND 11,196,891,000,000 under its recapitalization plan approved by the General Shareholders’ Annual Meeting in Resolution No. 01/NQ-ĐHĐCĐ dated April 27, 2017 and by SHB’s Board of Directors in Resolution No.21/NQ-HĐQT dated August 28, 2017.
The SBV required SHB to implement recapitalization in line with applicable laws, including the compliance with limit of share ownership by shareholders as stipulated in Law on Credit Institutions, relevant laws and SBV’s guiding documents after recapitalization.
The completion of recapitalization should be reported to the SBV (via Banking Supervision Agency) for the revision of its license.
The Document takes effect within 12 months from the date of signing. It will cease to be effective in case that the recapitalization plans of SHB is not implemented as scheduled, and that its General Shareholders’ Meeting adopts the changes of the recapitalization plan which has already been approved by the SBV.
Le Hang