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Thursday, June 13, 2024

SBV says restructuring of problem banks still tough

The Saigon Times

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HCMC – The restructuring of poor-performing banks remains a tall order, particularly at a time when economic conditions are getting tougher, said Nguyen Thi Hong, governor of the State Bank of Vietnam (SBV).

Speaking at a session of the National Assembly (NA) on November 6, Hong said there are four joint-stock commercial banks currently under special watch, namely DongABank, Construction Bank (CB), OceanBank, Global Petroleum Bank (GPBank), and Saigon Commercial Joint Stock Bank (SCB).

She said it is challenging to restructure the four banks as finding interested investors for them has proven difficult while policy mechanisms and resource support for their restructuring require input from relevant authorities.

These banks have sought approval from higher authorities for their restructuring plans and are currently implementing the outlined steps before submitting detailed proposals for approval.

The Government previously reported to the NA regarding the handling of problem banks in the banking sector.

To date, the SBV has received approval from competent authorities for the mandatory transfer of these four banks.

The central bank is overseeing the next steps for presenting a restructuring plan for these banks to the Government, following established protocols and procedures.

Regarding SCB, which came under special supervision in October 2022, the central bank has been working with various government departments to implement measures to safeguard the stability of the banking system and protect the rights and interests of depositors. The central bank and the special supervision team for SCB are seeking investors for the bank’s restructuring and presenting the proposal to the Government for approval.

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