Banking & Finance
Banks prepare to take over stock trade accounts
VNECONOMY updated: 26/12/2007
Beginning March 1, investors must deposit their cash with commercial banks instead of securities companies, under a new regulation from the Ministry of Finance and the State Securities Commission of Viet Nam.
The new regulation was passed to ensure that transactions were transparent and secure.
A number of banks, including Vietcombank, Asia Commercial Bank, Techcombank and Eximbank, have already begun to create new services for these new customers, including a reduction of maintenance fees and better linkage with securities companies.
Banks say the most effective way of trading will be through an online system. Any trades will be communicated online to the bank that handles investors’ accounts.
ACB, for example, has signed a deal with five securities companies to offer these services and are in discussion with seven other securities companies to possibly finalise another agreement.
Vu Duc Toan, an ACB manager, said the bank had plans to work with 40 securities companies.
Dong A Bank has signed an agreement to work with five securities companies.
Tran Hoai Phuong, Empower Securities acting general director, said: “We will cooperate with commercial banks to manage the accounts of stock investors online. This is the trend for the stock market here.”
Nguyen Ngoc Truong Chinh, Dong Duong Securities deputy general director, said a securities company could only work with a limited number of banks because of the start-up and maintenance fees.
According to Chinh, the most important criterion in choosing a bank to work with is that it has a large branch network.
Investors can then deposit their money at any branch instead of bringing the cash to securities companies.
Source: Vietnam Agency
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