Is Eximbank "tying its shoelaces in the middle of a melon field"?

Eximbank is undergoing too many changes and irregularities. Moving its headquarters away from its birthplace is even more perplexing.

On October 21st, Eximbank (stock code: EIB) listed 122 million shares issued in September 2024 on the stock exchange.

On this very day, EIB shares surged to their ceiling price of 20,800 VND/share, the highest price in two years, and ranked among the top four stocks with the strongest price increases of the day. EIB's trading volume also spiked to over 34 million shares, leading the entire exchange in terms of trading volume.

Perhaps this is positive news for Eximbank's investors and customers after much anxiety. However, this does not dispel the doubts and anxieties about the bank's alleged control and manipulation.

Because Eximbank is experiencing too many changes and irregularities. The most unusual is the plan to hold an Extraordinary General Meeting of Shareholders (EGM) in Hanoi , as per the Board of Directors' resolution dated October 8th. The announced agenda item for this meeting is a change in the location of Eximbank's head office.

Changing the meeting location, or even relocating the headquarters of a bank, is not unusual, but Eximbank's move has attracted attention. The reason is that Eximbank has been established and developed for over 30 years in Ho Chi Minh City, with its customers and main revenue sources coming from the South. The majority of its branches and staff also live and work in the South. Eximbank holding its EGM in Hanoi was already unusual, and moving its headquarters away from its birthplace is even more puzzling.

However, looking at Eximbank's senior management and major shareholders, the relocation plan is not difficult to explain. The majority of the bank's major shareholders operate in the North. Thus, ultimately, customers and investors find a clue to Eximbank's intention to move its headquarters: "Where the shareholders and leadership are located, the headquarters will be moved there." The question is, does this decision truly serve the interests of customers and the company, or is it merely aimed at serving a specific group of shareholders?

The world has long recognized the risks of a bank being dominated by one or a few individuals. Following international practice, many countries have limited a shareholder's shareholding to under 5% to ensure public ownership and prevent manipulation. The Vietnamese banking sector has also made progress in this area, with the enactment of the Law on Credit Institutions in 2024, aimed at preventing cross-ownership, manipulation of banking operations, and protecting the national financial system.

Eximbank's plan to relocate its headquarters to Hanoi goes against this trend. This represents a step backward in terms of bank governance, as important decisions like changing headquarters are influenced by ownership factors.

Previously, many investors had expressed concerns about Eximbank's lending activities, particularly the large-scale lending to VIX Securities Joint Stock Company, one of the bank's major shareholders. Specifically, the bank granted VIX a credit of up to VND 1,700 billion and provided consumer loans of VND 520 billion to individuals within the company, while VIX is Eximbank's third-largest shareholder. This led many to fear that Eximbank might be caught in a cycle of manipulation, similar to what happened at SCB.

"Don't tie your shoelaces when walking through a melon field, don't adjust your hat under a plum tree." This saying seems very true in the current case of Eximbank. Given the clear precedents, and the role and background that perfectly fit the "devious formula" of bank manipulation cases, the major changes and controversial credit dealings at Eximbank need an explanation soon.

Source: https://nld.com.vn/eximbank-dang-cot-giay-giua-ruong-dua-196241023205313638.htm