Foreign banks to accept dong deposits.
(16-02-2007)
HA NOI — Branches of foreign banks in Viet Nam will be allowed to receive deposits in Viet Nam dong, according to Official Letter No 1210/NHNN-CNH issued last week by the State Bank of Viet Nam.
The regulation sets maximum amounts foreign banks may receive in domestic currency, as well as capital requirements for banks that accept dong deposits.
Foreign bank branches in Viet Nam are now able to receive up to 650 per cent of their registered capital in dong. This amount will be increased to 800 per cent in January of next year and then phased up to 1,000 per cent by January 2010.
By 2011, foreign bank branches will be entitled to the national treatment status pursuant to WTO commitments, and their ability to accept dong deposits will not be limited. — VNS
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