DOI:

Abstract

Small banks in Vietnam are nearing the deadline for increases in their chartered capital to VND1,000 billion as set by Decree 141/2006/NĐ-CP. The last nine banks in the list can be temporarily called “small banks” (De Nhat, Gia Dinh, Thai Binh Duong, My Xuyen, Xang Dau Petrolimex, Kien Long, Viet Nam Thuong Tin, Dai Tin, Dai A) and realities show that no joint stock banks in Vietnam want to be classified as “small.” In excitement after Vietnam’s accession to the WTO, banking authorities wanted commercial banks to beef up their strength in order to enhance their positions in the international integration and competition. Some extreme opinions carried by the press maintained that the WTO membership would put an end to all small banks in Vietnam. Is it certain that all economies, and Vietnam in particular, only need the presence and role of big banks and dismiss the small ones as unnecessary?

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