A plan to allow large Vietnamese State-owned commercial banks to pay dividends in shares or retain dividends would help them accumulate capital and meet regulatory minimum capital thresholds, Fitch Ratings said. Fitch-rated Vietnamese banks, including VietinBank, are estimated to need US$4.1 billion of additional capital to meet Basel II standards. However, the rating agency said, the positive effect is likely to be limited relative to the large capital needs State-owned banks face amidst rapid balance sheet expansion, underreporting of bad loans and Basel II implementation at the beginning of 2020. Media have reported that Vietnamese authorities have agreed to a proposal from the State Bank of Viet Nam that would allow State-owned banks to preserve internally generated capital by retaining dividends or paying them out in shares. The plan would still need to be approved by the National Assembly and would enable State-owned banks to follow a practice already in place for their private counterparts. ”We estimate that the positive capital impact for Fitch-rated State-owned banks (Vietcombank and VietinBank) will be up to 30 basis points, which is small relative to our estimated potential capital shortfall of up to 200 basis points, assuming they target an 8 per cent Tier-1… Read full this story
- (2nd LD) Shareholders back Hyundai's dividend plans over Elliott's | Yonhap News Agency
- Shareholders back Hyundai's dividend plans over Elliott's | Yonhap News Agency
- Sir Philip Green: From 'king of the High Street' to 'unacceptable face of capitalism'
- U.S.-China Trade Talks Face Big Obstacle: Ensuring That Promises Are Kept
- Panavision, Sim and Saban Capital Acquisition Abandon Merger Plans
- Deutsche Bank share price PLUMMETS after Commerzbank merger plan leaked
- OceanFirst Bank to buy Capital Bank in South Jersey for $80M
- Santander CEO Nathan Bostock banks £6.4m pay amid branch closure plan
- Maxine Waters vs big banks: How the House Financial Services Committee plans to take on Wall Street
- Democrats face a hard choice on pension plans
VN banks face big capital burden despite dividend plan have 326 words, post on vietnamnet.vn at September 6, 2019. This is cached page on VietNam Breaking News. If you want remove this page, please contact us.