According to Nguyen Van Giau, Governor of the State Bank of Vietnam (VBS), Bao Viet will be granted an official licence when the bank finalises paperwork.

The Hanoi-based bank will have three founding shareholders holding 56 percent of the stake, including the Bao Viet Group, Southeast Asia Bank (SEABank) and Vietnam Dairy Products Joint Stock Company (Vinamilk).

By the end of last year, the SBV received 12 applications to set up banks. However, so far only the Lien Viet Bank and Tien Phong Bank have been granted operation licences.

October 1 Prime Minister Dung ordered the SBV to review criteria for setting up new commercial banks. The central bank was asked to review criteria on individual founding shareholders, general directors and members of executive boards in order to ensure strict management and effective operation of the banks.

The SBV also has to apply these new criteria to existing joint stock banks in order to ensure the consistence, stability, safety and effectiveness of the whole banking system. It will perfect and draft a new decree on the setting up and operation of commercial joint stock banks to be submitted to the Prime Minister for approval.