Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Banks show positive results during third quarter Banks show positive results during third quarter
Difficulty in finding banks eligible to receive compulsory transfers Difficulty in finding banks eligible to receive compulsory transfers
Stipulate implementation of centralized bilateral payments of the State Treasury at banks Stipulate implementation of centralized bilateral payments of the State Treasury at banks
Cross-ownership exceeding the prescribed limit and cross-ownership in the credit institution system are gradually being handled. Source: Internet.
Cross-ownership exceeding the prescribed limit and cross-ownership in the credit institution system are gradually being handled. Source: Internet.

Cross-ownership is gradually being handled

Compared to the previous period, cross-ownership in banks has decreased sharply thanks to the timely intervention of competent authorities and the addition of the legal system. In particular, the Law on Credit Institutions 2024 has added regulations to help strengthen the prevention of cross-investment, cross-ownership and ownership of a manipulative and dominating nature in credit institutions.

One of the most concerned regulations is the reduction of the share ownership ratio for institutional shareholders from 15% to 10% of charter capital, and for shareholders and related persons from 20% to 15% of charter capital. At the same time, credit institutions are required to publicly disclose information on shareholders and related persons with an ownership ratio of 1% or more of charter capital at the credit institution. Therefore, up to now, a series of commercial banks have strictly complied with the announcement of this list.

In the report sent to the National Assembly on the implementation of Resolution No. 62/2022/QH15 on questioning activities at the 3rd session of the 15th National Assembly for the banking sector, the Governor of the State Bank of Vietnam (SBV) affirmed that share ownership exceeding the prescribed limit and cross-ownership in the credit institution system have been gradually handled, and the situation of large shareholders/shareholder groups manipulating and dominating banks has been limited.

The situation of excess share ownership, cross-ownership between credit institutions, credit institutions and enterprises according to the report of credit institutions after processing has decreased significantly compared to previous periods. Shareholders, shareholders and related persons owning shares exceeding the prescribed limit are mainly in corporations and state-owned enterprises.

As for the situation of exceeding the regulations

The report on the percentage of shareholders owning more than 1% of OCB's charter capital shows that 20 shareholders owning 1% or more of the charter capital, not including related persons, own nearly 80% of the bank's capital, including 13 institutional shareholders owning 54.6% of the capital and 7 individual shareholders owning the remaining 24.8%. Chairman of the Board of Directors Trinh Van Tuan and his related parties own more than 19.9% ​​of the capital, Ms. Cao Thi Que Anh (Mr. Tuan's wife, also a member of the Board of Directors of Century Fiber Joint Stock Company) and her related parties own nearly 19.8% of the capital, Mr. Tuan's 3 daughters and their related parties also own more than 19% of the charter capital - all exceeding the provisions of the Law.

At VIB, 2 shareholders and their related parties own more than the ratio according to the new regulations, even Mr. Dang Khac Vy - Chairman of the Board of Directors of VIB and his related parties own more than 20.2% of the charter capital - exceeding both the old and new regulations.

At Techcombank, according to the update in September 2024, Mr. Ho Hung Anh and his related parties own 19.96% of the charter capital; Masan Group Corporation and its related parties own 20.09% of charter capital - an increase from the 15.15% announced in July 2024. In addition, Techcombank also has 4 individual shareholders and related parties owning from 17% to nearly 33% of the bank's charter capital.

Not only the 3 banks mentioned above, the report on the percentage of shareholders owning more than 1% of charter capital of some banks also shows a fairly large ownership ratio of a group of shareholders, enterprises, organizations and related persons, or the ownership ratio exceeds the prescribed limit...

According to the State Bank, handling the issue of ownership exceeding the prescribed limit, cross-ownership is still difficult in cases where major shareholders and related persons of major shareholders intentionally conceal, ask other individuals/organizations to register the number of shares owned to circumvent regulations, leading to the credit institution being controlled by these shareholders, potentially lacking transparency. Some credit institutions have a level of concentration of ownership of shares in a number of shareholders and related persons, although not violating the provisions of the law, but need to pay attention to prevent potential risks that may occur...

On the other hand, current law does not have regulations on the concept of cross-investment. During their operations, credit institutions must comply with the provisions of law (including credit granting, investment, capital contribution, share ownership, etc.). Currently, some credit institutions provide credit (loans, investments, etc.) to shareholders (organizations, individuals) and related persons of shareholders. However, the provisions of law do not prohibit credit institutions from providing credit to shareholders and related persons if they comply with the provisions.

In addition, according to the State Bank, the detection of relationships between enterprises is still limited because information to determine the ownership relationship of enterprises, especially enterprises that are not public companies, is very difficult. The State Bank is not proactive in looking up information as well as determining the accuracy and reliability of information sources.

By Huong Diu/ Huu Tuc

Related News

Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.

Latest News

Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).

More News

U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

VCN - The results of State budget revenue in HCMC in the first 10 months of 2024 are estimated to increase by 10% over the same period last year, of which the highlight is that revenue from import-export activities has begun to increase.
Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

VCN - Monetary policy and fiscal policy are the driving force for economic development, so that there has been effective coordination, Deputy Prime Minister and Minister of Finance Ho Duc Phoc.
Seaport stocks surge amid positive sector outlook

Seaport stocks surge amid positive sector outlook

During the trading session on 12 November, while the VN-Index fell for the fourth consecutive session to 1,244 points, several seaport and shipping stocks such as MVN (VIMC), VOS (Vietnam Shipping), and GMD (Gemadept) maintained upward momentum.
Read More

Your care

Latest Most read
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - According to the State Capital Management Committee at Enterprises, to date, the country has six hundreds and seventy one SOEs including 6 economic groups, 53 state-owned corporations and 19 LLCs operating under the parent-subsidiary model.
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Mobile Version