The State Bank of Viet Nam (SBV) last Friday licensed the establishment of MB Shinsei Finance Limited Liability Company (MS Finance).

MS Finance’s charter capital is VND500 billion (US$22 million), of which Military Bank owns 50 per cent, Japan’s Shinsei Bank Ltd has 49 per cent and Xuan Thanh Construction and Development Company owns 1 per cent.

Under this licence, the finance company, whose operation can continue for 50 years, is allowed to engage in activities performed by consumer credit finance companies in accordance with Viet Nam’s law, such as mobilising funds through deposits of the organisation; issuing certificates of deposits, promissory notes, bills and bonds to raise funds of organisations; borrowing loans from credit institutions, financial institutions at home and abroad in accordance with the law; and borrowing from SBV in the form of refinancing according to SBV’s law.

The company is also permitted to grant credit in the following forms – loans, including installment loans and consumer loans; discount, rediscount of negotiable instruments and other valuable papers; along with issuing credit cards.

It can act as an insurance agent and provide consulting services in the fields of banking, finance and investment, as well as provide services of managing and preserving assets of customers. — VNS