Commercial banks have postponed listing their shares on the bourse, as requested by the State Bank (SBV) in an effort to make banking operations transparent.

 

 

 

Binh asked the local branches to keep a close watch over the banks’ listing plans and report implementation of the plans to SBV, emphasizing that listing shares is a compulsory solution to upgrade transparency in banking operations and eliminate circular ownership among banks.

The State Bank for the first time asked banks to list shares in late 2013. It later repeated the request in July 2014, stating that all banks must list their shares within 2015 at the latest.

Analysts noted that the State Bank repeatedly requested banks to list shares as soon as possible because it is impatient about numerous scandalous cases in the banking system. 

Nine commercial banks have listed on the bourse, including banks in which the State holds controlling stakes -- Vietcombank, Vietinbank, BIDV, some large joint stock banks, namely ACB, Eximbank, Sacombank, MBB, SHB, and NCB, a small bank with chartered capital of VND3 trillion.

The total value of the banks’ listed shares is roughly VND134 trillion, and the figure would be VND150 trillion if the other 26 banks would also list their shares.

An analyst said that banks are not eager to enter the bourse at this moment, when bank share prices are at low levels. Bank shares would probably not sell well, especially when the banking sector is experiencing tough days.

Meanwhile, a banker said that bankers would not think of listing shares until their restructuring process is completed.

“Banks are now busy with merger and acquisition deals,” he explained. “It would be better for them to turn up on the bourse after the process, when they become larger and more powerful.”

“Any banker would hope to attract large investors when listing shares. Meanwhile, there is not much hope to persuade investors to pour money into the banking sector, which has been witnessing unsatisfactory business results over the last few years,” he explained.

That is why some banks, which planned to list shares three or four years ago, have not moved ahead with their plans.

Southern Bank, Nam A Bank and HDBank said that they would list shares by June 2015 at the latest. A senior executive of SCB said SCB would call for foreign capital and upgrade its financial capability before it lists shares on the bourse.

“I am sure banks would not list shares until 2016,” he said.

DNSG