Western Bank allowed to issue valuable papers

Under the Decision No 2623/QD-NHNN issued by the State Bank of Vietnam (SBV) on November 8, 2010, Western Commercial Joint Stock Bank (Western Bank) has been allowed to offer long-term valuable papers in 2010 with the total face value of 500 billion dong including 400 billion dong in dong and 100 billion dong in US dollar.

The decision also indicated the purpose of the issuance, ways of using capital, name of these valuable papers, face value, valid duration, issuance location, issuance method and the location to pay for principle and yield.

In terms of coupon rate, these valuable papers will have the coupon in line with the market interest rate and the central bank’s current regulations, ensuring the business efficiency and safe operation of Western Bank.

Additionally, Western Bank must carry out regulations on issuing valuable papers of credit institutions together with the Decision No 07/2008/QD-NHNN dated March 24, 2008 and Circular No 16/2009/TT-NHNN dated August 11, 2009 issued by SBV’s governor.

At the same time, Western Bank must have responsibility for using capital in right purposes to ensure the efficiency in operation in accordance with the central bank’s regulation.

Western Bank has applied the dong deposit rate at 12% since November 6 for both individual and institutional depositors.

 

Category: Finance