The ownership ratio of an institutional shareholder in banks must be cut from 15% to 10% to diversify shareholder structure, increase publicity and limit control and takeovers of banks, said the National Assembly (NA) Standing Committee on Monday.
In its report delivered at the NA’s fifth extraordinary session on the amended draft Law on Credit Institutions, the committee said the reduction is consistent with the orientations set in the project on restructuring credit institutions associated with bad debt settlement in the 2021-2025 period.
The ownership ratio of a group of shareholders and related persons needs to be slashed from 20% to 15%, it added.
The current draft amended law limits the ownership ratio of an individual at 5%. Founding shareholders must hold a minimum of 50% of a bank's charter capital for five years from its establishment.
Foreign investors are allowed to buy shares in banks, but the maximum ownership level and purchasing conditions will be set by the government.
NA Chairman Vuong Dinh Hue said that based on the opinions of NA deputies at the legislature’s two previous sessions in 2023, the NA's Economic Committee, which supervises the draft law, and the NA's Standing Committee had focused on adjusting and supplementing regulations related to the handling of cross-ownership to limit control and manipulation of credit institutions; settlement of bad debts and collateral for bad debts; and uniformity of the legal system.
After being revised, the draft law includes 15 chapters and 210 articles, up seven articles from the version submitted to the NA at the previous session, and will be submitted to the legislative body for consideration and approval.
Emphasizing that the bill has many in-depth contents that have direct impacts on financial and monetary policies and macroeconomic stability, the top legislator requested lawmakers to study carefully and comprehensively before voting to approve the draft law in order to meet practical requirements and ensure the safe, healthy, transparent, stable and sustainable development of banks and credit institutions, in line with socialist-oriented market principles and common international practices and standards.