Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank) has got approval in principle from the State Bank of Vietnam (SBV) to upgrade its branch in Germany into a subsidiary bank, the central bank said on its website on April 9.
Accordingly, the lender’s subsidiary bank will be named VietinBank (Europe) Ltd and locates at No. 44, Reuterweg Road, 60323 Frankfurt am Main City, Federal Republic of Germany.
The subsidiary bank will receive an estimated total investment of euro 50 million and have an initial charter capital of euro 25 million. The central bank will consider allowing VietinBank to further contribute capital into its subsidiary in the coming years, basing on the lender’s compliance with the SBV’s regulation on prudent ratios.
Within 24 months from the central bank’s approval, VietinBank needs to complete all legal procedures to invest abroad in compliance with domestic laws as well as legal procedures, facilities and human resources necessary to open a subsidiary bank under the host country’s regulations.
VietinBank is required to regularly monitor and manage all the activities of its subsidiary bank and periodically send reports to the central bank on the operation, prudent ratios and legal compliance of the subsidiary.
The lender founded its Frankfurt’s branch on September 6, 2011 in Germany, being the first Vietnam bank to open branch in the EU.