Vietnam’s National Assembly last week passed revisions to the Law on Credit Institutions intending to provide greater transparency to the banking sector in the wake of a number of high-profile scandals, The Investor is reporting.
Key takeaways
- Lenders will need to make public shareholders with a stake greater than 1 percent;
- Institutional shareholder cannot hold more than 10 percent of a lender;
- Individual shareholders and related persons cannot own more than 20 percent of a lender;
- State ownership and foreign ownerships are exempted;
- Maybank Securities Vietnam (MSVN) says these amendments could impact lending plans of some banks. They may also create problems for capital-intensive businesses.
Note the amended law still needs to be announced by the president for it to be official, This is expected by February 1.