Vietnam to allow foreign investors to expand ownership in local banks
Move is meant to entice foreign investors into its troubled banking sector.
A draft regulation being prepared by the State Bank of Vietnam, the central bank, wants to boost the local banking sector by allowing more foreign investors to expand their ownership in local banks.
SBV said that in special cases, the prime minister can let foreign investors own more than a 30% stake in a local bank. This is being changed.
Vietnam limits ownership for an individual foreign investor in a local bank to 5%, while a foreign institution can own up to 15%. Foreign investors are allowed to hold a total of up to 20% in a local bank, except in special cases.
Total foreign ownership in a local bank can reach 30% if the prime minister endorses the investments.