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VAFI proposes increase in room for foreign investors in commercial banks

06/01/2008 06:36 pm
VAFI proposes increase in room for foreign investors in commercial banks
UB.Laws/Hanoi - The Vietnam Association of Financial Investors (VAFI) yesterday submitted a proposal to the Prime Minister, proposing to increase the room for foreign ownership in joint stock commercial banks to 35-37% from the current 30% to meet market demand.

According to VAFI, foreign institutional investors are very interested in holding bank shares. The holding of bank shares is also a strength for helping funds mobilise capital on the international markets. However, banks are tending to reserve this ownership%age for their foreign strategic partners.

This has made it difficult for foreign institutional investors to attain shares in commercial banks. The expansion of the%age of foreign ownership limit in banks will help attract more international investment in Vietnam, thus helping enterprises to boost operation with good corporate management.

Source: Nhan Dan


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