State Bank of Vietnam attempts to restructure the banking system

December 01, 2015
Vietnamnet - DealStreetAsia

Summary

In an effort to restructure the banking system, the State Bank of Vietnam (SBV) has taken over three joint-stock banks: Vietnam Construction Bank (VNCB), GP Bank and Ocean Bank for zero Vietnamese Dong and assigned managers from state-owned commercial banks to lead the restructuring effort in the acquired banks.

Due to poor management, the three banks depleted all shareholder capital. The decision to take them over helped protect the interests of depositors and clean up the banking system as a whole.

After many M&A transactions in 2014 and 2015, the number of commercial banks in Vietnam only stands at about 30 banks. Notable M&A transactions include mergers between SHB-Habubank, Vietinbank –PG Bank, BIDV-MHB, Maritime Bank-MDB and Sacombank-Southern Bank. M&A helped increase the size of Vietnamese banks and combine the strength and resources of existing banks to create bigger and more competitive players in the market.

Sources:

http://english.vietnamnet.vn/fms/business/138015/what-will-sbv-do-with-banks-sold-for-zero-vietnamese-dong-.html

http://www.dealstreetasia.com/stories/vietnam-ma-deal-market-to-touch-20b-between-2015-2018-9231/