The Government has promised to take drastic actions in dealing with violations in the banking sector, applying punishments to anyone who violates the law.
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| Vu Duc Dam, the Minister-Chairman of the Government Office |
According to the Law on Credit Institutions, issued in 2010, an individual shareholder is not allowed to own more than 5% the charter capital of a credit organisation, while the rate for institutional shareholders should not over 15% percent.
While the banking system is indispensable to the emerging economy, many insiders say that it has also been the source of macroeconomic instability in the past few years, he said, adding that, the restructuring of the banking system is key to ensure the healthy development of the economy and should be a top priority for Vietnam.
The Government has taken strong measures to prevent and penalise abuses in the banking system to ensure its healthy operation. “Anyone who violates regulation will face punishment, and there will be no exceptions," he emphasised.
The Minister-Chairman also noted that, "It was not until the arrest of the tycoon Nguyen Duc Kien that banking crimes were talked about openly but the Government had ordered the inspection agencies to pay special attention to banking violations, particularly illegal acquisitions.”
Under Vietnamese criminal law does not specifically address "illegal acquisitions" in banking sector, even though “illegal business practices” and “speculation” are clearly regulated.
Deputy Governor of the State Bank of Vietnam, Nguyen Dong Tien, said the bank audits the management practices of a certain number of banks on a yearly basis.
