Such savings funds,
which are not allowed to give loans, are seen as the fastest way for
banks to widen their networks. Such affiliates still are allowed to
mobilise funds, issue and discount valuable papers issued by the bank,
and offer money remittance and transfer services.
Techcombank
on Tuesday inaugurated a savings fund in District 1 in HCM City just
days after opening one at An Dong Plaza. Saigon Commercial Bank on
Monday moved their headquarters to a new place and reserved the old
premises for a saving fund of the bank.
Similarly, Vietnam
Tin Nghia Commercial Bank in May and June opened four savings funds
while late last month, Maritime Bank also opened its first savings fund
in HCM City.
Although savings funds can not give loans, but
if customers have such demands, staff at the savings fund would help
them complete a borrowing document and transfer it to a transaction
office with the function in the system, according to a banking expert.
Therefore, savings funds can satisfy the demand of banks in mobilising
funds as well as widening their presence in big cities like HCM City.
The director of a Hanoi-based bank's branch said that banks which had
been prevented from opening more branches and transaction offices in
big cities had turned to opening savings funds as a leeway. When those
saving funds have enough conditions, they can be upgraded into
transaction offices, he said.
An official from the central
bank's HCM City Branch admitted that some banks that are not allowed to
open new transaction offices in the city could open savings funds that
did not require strict conditions. Later, these banks can upgrade a
savings fund into a transaction office easily.
The official
said that recently, the State Bank of Vietnam had restricted widening
networks of lenders as banks who have more than two branches in each
city of Hanoi and HCM City could not open more while some who have less
than two branches might do so at the discretion of the central bank, he
added.
To open a savings fund, banks have to register with
the provincial branches of the central bank where banks place the fund.
In addition, banks must satisfy some criteria such as they must have
been in operation for at least one year, have not been imposed
administrative fines in the recent one year, and ensure a capital
adequacy ratio.
The official said that a bank can open as
many savings funds as they wish in one city. Experts in the banking
industry said that banks rushing to open saving funds would not have
bad impact if they can ensure risk management.