Illustrative image (Source: vir.com.vn)
Hanoi (VNA) - In getting the central bank's approval to open more branches and transaction offices last week, LienVietPostBank became the first joint stock commercial bank to have a transaction network covering the entire country.
Based on the approval notice, LienVietPostBank will be allowed to open an additional seven branches in the provinces of Phu Yen, Hung Yen, Tay Ninh and Ha Tinh, as well as Lai Chau, Son La and Binh Dinh, along with 62 transaction offices in 22 cities and provinces.
Currently, only the State-owned commercial banks of Bank for Agriculture and Rural Development (Agribank) and Bank for Social Policies have a transaction network spanning all 63 cities and provinces.
Some joint stock commercial banks also have roughly 200-400 branches and transaction offices, but most of them are mainly based in major cities and towns, while the number of offices in remote areas remains limited.
LienVietPostBank said the expansion plan is aimed at better managing the bank's post-transaction offices in cities and provinces and implementing financial and credit policies on rural and agricultural development.
The expanded network will also ease the bank's social insurance payment and micro financial service provision.
Under current regulations, besides earning a profit, complying with the central bank's regulations on operational safety and having non-performing loans of fewer than 3 percent of the total outstanding loans, the minimum capital requirement for opening a new branch and transaction office in Hanoi and HCM City is 300 billion VND (13.3 million USD) and 50 billion VND in other cities and provinces.-VNA
