According to the report of the Governor of the State Bank of Vietnam (SBV) sent to the National Assembly at the 9th Session of the 15th National Assembly, by 2025, weak banks and credit institutions will be basically handled, especially preventing the emergence of new weak banks.

The State Bank of Vietnam has issued compulsory transfer decisions for three compulsory purchase banks (OceanBank, Construction Bank, Global Petroleum Bank) and Dong A Bank, an important step in the restructuring of the weak banking system.

Thereby, the stability and safety of the credit institution system continues to be maintained, and the legitimate rights of depositors are guaranteed.

The report said that, based on the investor's restructuring plan for Saigon Commercial Joint Stock Bank (SCB), the State Bank of Vietnam has submitted a report to the Government on the restructuring plan for SCB.

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The State Bank has submitted a report to the Government on the restructuring plan of SCB.

On April 18, the State Bank of Vietnam submitted a document to the Prime Minister explaining the opinions of Government members.

According to Resolution 25 dated April 29 of the Government, the State Bank of Vietnam is continuing to complete the restructuring plan of SCB to submit to competent authorities for approval.

The report also said that joint stock commercial banks (JSCs) are actively implementing restructuring plans as approved by competent authorities.

Accordingly, basically, commercial banks focus on consolidating and comprehensively rectifying financial, administrative and operational aspects to improve business efficiency and competitiveness.

Banks have actively grown, expanded their scale, boosted credit, mobilized capital, and actively improved their solvency and financial safety and health indicators.

In addition, banks are making efforts to handle bad debts, strengthen risk control and improve credit quality, especially in areas with potential risks. At the same time, many banks are expanding payment services, non-credit services, retail and consumer credit; promoting the development and diversification of banking services.

Regarding bad debt in the current credit institution system, by February 2025, the on-balance sheet bad debt ratio (excluding 5 banks MBV, GPBank, NCBNeo, Vikki Bank and SCB) will be at 1.88%.

On October 15, 2022, the State Bank of Vietnam announced its decision to take special control of SCB Bank to stabilize its operations. This is a professional measure in accordance with the law to strictly control and limit negative impacts on that credit institution and the system of credit institutions.

Accordingly, SCB Bank's operations are carried out under the control of the State Bank. The State Bank selects and appoints experienced, competent, and professionally qualified officers from state-owned commercial banks (Vietcombank, BIDV, VietinBank, Agribank) to participate in the management and operation of SCB Bank.

Source: https://vietnamnet.vn/nha-dau-tu-da-co-phuong-an-co-cau-lai-ngan-hang-scb-2398411.html