Banks with no profit and bad debt over 3% are still listed

(QNgTV)- The Government has just abolished some requirements on profits and bad debts when approving stock listings with credit institutions.

Transactions at commercial banks.

Permanent Deputy Prime Minister Nguyen Hoa Binh has just signed a decision approving a plan to cut and simplify administrative procedures in the business sector managed by the State Bank.

Accordingly, the management agency abolished some conditions when approving the listing of shares for credit institutions. Banks are still approved for listing, without being required to have profits on audited financial statements for two consecutive years, a bad debt ratio of less than 3% for two consecutive quarters, or a Board of Directors and Supervisory Board with sufficient numbers and structure according to regulations.

Other conditions are also abolished such as having a minimum operating period of two years, the actual value of the charter capital not being lower than the legal capital... when approving the listing of shares of a joint stock credit institution.

Currently, 21 banks have listed on the stock exchange, not including Kienlongbank which is in the process of completing procedures. The remaining 5 banks that have not listed and are trading shares on the UPCoM market are Saigonbank, VietBank, PGBank, BVBank and ABBank. With this new regulation, the remaining units will have "easier" conditions than before when submitting listing documents.

In addition, in this decision, the Government also removed and simplified a number of conditions for establishing branches for commercial banks, regarding asset classification, provision levels, risk provisioning methods, and the number and structure of the Board of Directors, Board of Members, and Board of Supervisors.

Source: https://quangngaitv.vn/ngan-hang-khong-co-lai-no-xau-tren-3-van-duoc-niem-yet-6507512.html