Governor Nguyen Thi Hong of the SBV yesterday, May 24, presented a report on the progress of the banking system restructuring plan to the National Assembly. The report covers the status of the three banks under mandatory acquisition by the SBV and two other banks under special control.

Last year, the central bank took measures to handle banks under special control, including Vietnam Construction Commercial Bank (CBBank), Ocean Commercial Bank (OceanBank), and Global Petro Commercial Bank (GPBank). The two banks under special control are Saigon Commercial Bank (SCB) and Dong A Bank.

The central bank has submitted the restructuring plans for these banks and solutions for each institution.

The Government has issued a resolution approving the mandatory transfers of the three problem banks. The central bank is now directing relevant parties to follow procedures under the amended Law on Credit Institutions to seek Government approval.

Governor Hong pointed out difficulties in finding eligible commercial banks to take over those problem banks. The process has been delayed due to the voluntary nature of these arrangements and the need to persuade shareholders, particularly major and strategic foreign shareholders.

Existing financial policies and mechanisms for dealing with weak banks are inadequate. Coordination with related ministries and agencies has been slow due to the complexity and unprecedented nature of the issue.

The central bank will continue to work with relevant ministries and agencies to deal with those weak banks. This includes reviewing and amending regulations to improve the legal framework under the 2024 Law on Credit Institutions. The central bank is also directing the completion of mandatory transfer plans for Government approval.

Saigon Times