State Bank handles special control banks, 3 banks are forced to buy

In the Report sent to the National Assembly's Economic Committee before the 5th Session opening on May 22, the State Bank of Vietnam (SBV) said it had submitted and received approval from competent authorities for the policy of handling banks under special control, including 3 banks subject to compulsory purchase.

Specifically, for banks under special control, the State Bank continues to implement solutions to handle these banks, including compulsory purchase of 3 banks, under the direction of competent authorities.

The State Bank has reported to competent authorities the restructuring plan for banks under special control and specific handling plans for each bank.

Regarding Saigon Commercial Joint Stock Bank (SCB), which will be placed under special control from October 2022, the State Bank of Vietnam said it is carrying out procedures to assess the overall situation to have a basis for developing a restructuring plan for this bank and reporting to competent authorities for approval.

Up to now, SCB's operations are still under control and gradually stabilizing; there have been no incidents of insecurity or disorder in areas where SCB branches and transaction offices are located.

The mandatory transfer of banks including zero-dong banks such as OceanBank, CB, and DongA Bank has been mentioned for a long time. At the recent 2023 Annual General Meeting of Shareholders, some commercial banks that are expected to receive the transfer of one of the four banks mentioned above also mentioned this.

These banks include: Vietcombank, MB, VPBank, and HDBank .

At the Vietcombank General Meeting of Shareholders, Chairman of the Board of Directors of Vietcombank - Mr. Pham Quang Dung said that Vietcombank assessed that the processing time for the received banks would not exceed 8 - 10 years, to turn these organizations into healthy and normally operating credit institutions.

Meanwhile, MBBank's permanent Deputy General Director - Mr. Pham Nhu Anh said: "MB is carrying out the mandatory transfer bank valuation procedure. According to the procedure, the valuation time is 11 months, expected to be completed by early 2024 at the latest."

Responding to shareholders, VPBank Chairman Ngo Chi Dung also revealed that VPBank is one of four banks participating in the restructuring of weak banks. However, Mr. Dung said he could not say exactly because this depends on the approval process.

At HDBank, the bank submitted to the shareholders' meeting a plan to contribute no more than VND9,000 billion to the bank for compulsory transfer. The weak bank will operate in the form of a single-member limited liability bank with HDBank as the owner of 100% of the charter capital, an independent legal entity from HDBank.

Banks have been looking for partners for decades, but a secretive giant has soon appeared . Bank mergers and acquisitions, and the search for major partners often take a long time. A typical example is the divestment deal at PGBank by the Petroleum Group, which took a decade to finalize, and the secretive buyer will soon be revealed.

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