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Local banks are requested to address the two main issues, including raising chartered capital and modernizing banking technologies.
Total chartered capital of state-owned commercial banks currently reaches VND 21,000 billion. Their ownership capitals stay at a mere US$ 200-250 million at average, which is as low as the ratio of medium-sized banks in the regions. Meanwhile, ownership capital of joint stock commercial banks is about VND 200-300 billion.
Raising chartered capital means higher share prices sold to foreign banks or vice versa. Local banks will manage to draw participation of outsiders. Most of the joint stock commercial banks target a chartered capital of VND 1,000 billion by 2010.
Asia Commercial Bank (ACB) raised its chartered capital from VND 948.32 billion to VND 1,100 billion. The Vietnam International Bank (VIB) also increased its capital to VND 711 billion from VND 595 billion. Recently, the Ha Noi Building Commercial Joint Stock Bank (Habubank) have been allowed by the State Bank to increase its chartered capital to VND 900 billion, of which VND 250 billion was raised from its existing shareholders and VND 150 billion was raised from new shareholders. The Global Bank (G-Bank) targets to increase its chartered capital to at least VND 1,000 billion in 2006.
Apart from raising capital, local banks run a race on modernizing banking technologies. As soon as Sacombank invested US$ 400 million in applying the Core Banking System software, Habubank continued the second phase of its projects developing the same software, which helps to improve services of banks. Also, the Military Joint Stock Bank (MB) has launched Mobilebanking service on the basis of applying and developing its core banking system. Recently, VIB bank has announced to successfully apply a multi-functional banking system, SYMBOL, provided by Singapore-based System Access. This solution will help the bank to build a quick, accurate online payment network.
Particularly, G-Bank managed to fully develop its T24 Core Banking system within 6 weeks and committed to finish a transaction in one minute, making a new record. It is also the first bank to allow customers to use G-Name (transaction name) which is similar to a nickname used to chat online. This will make it easier for customers to remember their transaction names. Furthermore, their tiredness caused by remembering a 14-digit account number would be released.
Source: VnEconomy, Nov 9, 2006
