This is information that Mr. Dam Minh Duc, Member of the Board of Directors and General Director of Construction Bank (CB), said at the press conference on 5-6.
Mr. Dam Minh Duc said that from 2015, CB officially became a 100% state-owned bank with comprehensive support from Vietcombank, from changes in governance model, technology system, to system system of products, services and brand image…
Especially, 2022 is the first year since the restructuring, CB has officially approved the business plan by the State Bank and has completed 100% of the targets. Specifically, the total deposit balance reached more than 20.000 billion VND; net increase in credit from corporate and retail customers reached over VND 5.000 billion; Diversifying revenue from wholesale and retail activities, capital trading, insurance, debt collection, etc.
Construction Bank has just officially announced that it will be forced to transfer to Vietcombank
“It is expected that in about 6 months, Vietcombank will become CB's parent bank. Recently, the Politburo has also approved this policy. CB is also getting ready for the mandatory transfer to Vietcombank” – Mr. Dam Minh Duc informed.
According to CB, being transferred to one of the leading credit institutions in Vietnam will open a new journey with CB, after more than 8 years of steadfastness on the restructuring journey.
On the side of Vietcombank, at the 2023 annual general meeting of shareholders held at the end of April 4, Vietcombank's Chairman Pham Quang Dung said that the bank would receive a forced transfer of a weak and very active credit institution. Extremely prepared for this process.
“M&A in the banking sector contributes to additional resources from capital, customer base, branch network… for the receiving credit institution. However, this process should pay attention to the factors of corporate culture, adjust governance, and technology to suit the post-merger credit institution. And the Government and the State Bank need to have appropriate mechanisms, policies and tools to support and compensate credit institutions receiving forced bank transfers, "- Dr. Can Van Luc said.
Not only Vietcombank, the last season of the bank's general meeting of shareholders, a number of other banks such as MB, VPBank, etc. also submitted to shareholders to approve the merger of another credit institution.
Exchange with Labor Newspaper, Dr. Can Van Luc, Member of the National Financial and Monetary Policy Advisory Council, assessed that there are 3 main impacts from mergers and acquisitions (M&A) deals in the banking sector, including commercial ones. forced transfer of weak banks.
Accordingly, M&A will contribute to speeding up the process of restructuring the economy and credit institution system as the projects approved by the National Assembly and the Government. At the same time, contributing to a healthy system of credit institutions, reducing unfair competition because weak banks often mobilize higher interest rates - contributing to reducing interest rates.
