On November 14, 2019, the Government issued Decree 86/2019 / ND-CP providing for the legal capital of credit institutions and foreign bank branches. This Decree takes effect from January 15, 2020.
Accordingly, Article 2 of the Decree stipulates the level of legal capital for each entity as follows:
1. Commercial bank: VND 3,000 billion
2. Policy bank: VND 5,000 billion
3. Cooperative bank: VND 3,000 billion
4. Foreign bank branches: US $ 15 million (USD).
5. Financial company: VND 500 billion.
6. Financial leasing company: VND 150 billion.
7. Microfinance institutions: VND 5 billion.
8. People’s credit fund operating in a commune or a town (hereinafter referred to as commune): VND 0.5 billion.
9. People’s credit fund operating in one ward; people’s credit fund operating in inter-commune, inter-ward and inter-ward areas: VND 1 billion.
Businesses related to the field of finance – banking always carry risks, in case of incidents, they will cause unforeseen losses to related entities. Therefore, the issuance of Decree 86/2019 / ND-CP clearly defines the legal capital of entities operating in the field of finance and banking, in order to ensure payment and overcome when there are risks. arising, enhance the peace of mind of entities related to financial – banking activities.