Vietnamese banks raise charter capital by USD4.8tr

Banks in Vietnam raised their charter capital by more than VND110 quadrillion (USD4.8tr) in 2021 to enhance financial strength and meet the central bank’s regulations. The increase is the highest annual growth to date, according to reports. The bank with the strongest capital increase last year was VPBank, which raised charter capital from VND25.3tr to more than VND44.4tr through paying dividends in shares and issuing bonus shares for existing shareholders. More than 20 banks also increased their charter capital. The list included Vietcombank, VietinBank, BIDV, SHB, TPBank, and OCB. Only Techcombank and Sacombank did not raise their charter capital in 2021. Industry insiders said banks had to increase charter capital strongly last year as they have to prepare to meet the central bank’s regulation.