SCB Bank is still operating stably.

At the Q1/2024 press conference held on the morning of April 19th, Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, shared solutions for restructuring SCB bank.

When Saigon Commercial Bank (SCB) fell into a difficult situation, even considered a "crisis," the central bank's function was to intervene promptly to ensure that the bank did not collapse and that it did not affect the national financial system and the safety of the commercial banking system. Therefore, the State Bank of Vietnam had to take timely action.

When SCB experienced a liquidity crisis in October 2023, the State Bank of Vietnam, both legally and in accordance with its functions, stipulated that the central bank had to take measures to stabilize the bank.

According to Mr. Tu, SCB is not the first bank to experience such an incident; over the past 10 years, there have been weak banks, and some have been placed under special supervision. For example, 8-9 years ago, three commercial banks were placed under special supervision and had to be dealt with.

According to the State Bank of Vietnam's leadership, SCB is one of the large-scale banks with substantial total assets, therefore the solutions to address its problems require extensive procedures and large-scale support.

"To date, SCB Bank is still operating stably, and the State Bank of Vietnam will continue to develop a roadmap to gradually restructure this bank," the Deputy Governor added.

The State Bank of Vietnam's support measures to ensure the stability of SCB include loans from the Central Bank to weak banks, all of which are implemented in accordance with legal regulations. These measures are very detailed and contribute to ensuring the stability of the system.

According to Mr. Tu, lending or money supply, whether used extensively or sparingly, will always have regulating mechanisms. "When we see an excess of money in the economy , the State Bank of Vietnam also has measures to issue treasury bills to withdraw the money, as has been done recently," the State Bank leader added.

Source: https://phunuvietnam.vn/pho-thong-doc-dao-minh-tu-ngan-hang-scb-van-dang-hoat-dong-on-dinh-20240419141813683.htm