HANOI, Aug. 8 (Xinhua) -- Business conditions related to the establishment and operation of joint stock commercial banks and non-bank credit institutions in Vietnam will be eased, local media reported on Wednesday.

According to a draft circular from the State Bank of Vietnam, the country's central bank, founding shareholders of a joint stock commercial bank will still have to own at least 50 percent of the bank's charter capital.

The central bank will no longer need to hold the capital for five years from the date of receiving the license as currently required, daily newspaper Vietnam News reported.

The draft circular removes regulations that founding shareholders, including both individuals and institutions, must have the financial ability to contribute capital to establish a joint stock commercial bank.

The draft circular also eliminates the old requirements that founding shareholders take full responsibility for the legality of the contributed capital source; commit to giving financial support to their joint stock commercial banks to resolve problems in case their banks face difficulties of financing or liquidity; and have at least two institutional founding shareholders.

As for regulations on the issuance of licenses, organization and operation of non-bank credit institutions, the draft circular removes three conditions, which are having at least two institutional founding shareholders, securing sufficient financial resources, and founding shareholders being required to support their non-bank credit institutions through difficulties in capital, solvency and liquidity.

Standards for general directors of cooperative banks are also eased under the draft circular. There will be no requirement that people in this position have worked more than five years in the banking industry.

In a recent directive, Vietnamese Prime Minister Nguyen Xuan Phuc noted that the removal of business conditions is one of the key measures for economic growth and efficiency. He instructed relevant ministries and agencies to submit proposals on simplifying business conditions and reforming the specialized inspection process before Aug. 15.