After many years of delay, there are positive signals regarding the handling of weak banks. There will be significant breakthroughs in 2024, following the recent passage of the amended Law on Credit Institutions by the National Assembly. Positive signals It has been nearly nine years since the State Bank of Vietnam (SBV) acquired VNCB for zero Vietnam dong as the first instance of the central bank taking over problem banks. During these years, the restructuring of weak banks (including three banks acquired by SBV for zero dong and another bank put under special control) has not only failed to achieve its goals but also seen the emergence of an additional weak bank requiring special control SCB (in 2022). Explaining this delay, the Government recently stated that despite efforts to look for and persuade well-performing banks to take over ailing ones, there have been many difficulties due to the reluctance from banks to be assigned as receivers. Moreover, banks also need time to persuade shareholders, especially major shareholders and strategic foreign stakeholders, to agree to such receivership. Governor of the SBV Nguyen Thi Hong previously told the National Assembly that developing a plan to restructure weak banks is very challenging due […]
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