Vietnam easing limits on foreigners owning banks

Capital-hungry Vietnam is further opening the door to foreign ownership of its banks.

Local brokers report that the government, announced through a State Bank of Vietnam circular, has issued a draft decree that would allow the prime minister to let foreigners take strategic stakes in banks beyond 30%, on a case-by-case basis.

Such “foreign strategic partners” to local purveyors of credit must be a financial institution with at least $20 billion in total assets and should own less than 10% of another bank in Vietnam.

The proposal would also ease rules about local banks selling shares, which currently require them to have no more...