Trang Chủ
After the delighted declaration by group 1 and group 2 banks, people are waiting for the official announcement by group 3 and group 4 banks.
Owing to their presumably biggest potential, 6 banks of G12, namely Vietcombank, Vietinbank, Agribank, BIDV, Eximbank, Techcombank are believed to be listed in group 1. The rest, namely ACB, STB, SeABank, EIB, VPBank, VIB, Maritime Bank, MHB (Mekong Housing Bank), Military Bank (MBBank) were previously announced to be in group 1.
In group 2, Western Bank has been added following LienVietPostBank, SHB, DongAbank, NamAbank, Southernbank, OCB, AnBinhbank, PGbank, KienLongbank, DaiAbank, BaoVietbank, and Oceanbank. Habubank is the first to courageously announce to be in group 3.
Recently, a foreign finance-banking expert said that 3-5 pillar banks are sufficient for a sound and stable banking system and others must be strong and healthy enough. Whereas, Vietnam is abundant with small-scaled and weak banks. That is also the common view of local experts.
This situation has inspired the kick-off of banking restructuring plan. Following the classification of SBV, the next will be the merger and acquisition of weak banks. Big banks are rushing to acquire not only the market share but also the “moribund” banks. Either do the foreign investors.
While big investors are excited about the coming transactions, people are anxiously observing as their money is deposited with banks for earning interests. In case of bankruptcy, will their money be safely withdrawn?
At a recent press conference, Governor Nguyen Van Binh made clear his view on the banking restructuring by a saying: “nem chuot khong vo binh” (which implies the restructuring of weak banks must not harm the whole system and the depositors). SBV will protect the legitimate rights of the depositors.
According to Dr. Bui Khac Son, General Director of the Deposit Insurance of Vietnam (DIV), when group 4 banks are exposed, DIV will assess their financial need and proactively suggest solutions to the troubled banks, protect the legitimate rights and benefits of the depositors and contribute to the safe and sound banking system.
In the latest speech on VIR, Dr. Son shared that DIV carries out regular supervision of 100% insured institutions, consisting of 92 commercial banks, 11 non-bank institutions, 1093 Central and local People Credit Funds (PCFs). The periodical and ad-hoc reports have been built up and DIV have made research to gradually improve the quality of them.
“Upon detecting the high-risk cases that may pose hazards to the rights of the depositors and the safe and sound banking system, DIV will send warnings to the insured institutions as well as reports to SBV and related agencies for proper solutions. Together with off-site supervision, on-site examinations are carried out to get a better assessment of the operation, the existing and potential risks of credit institutions” – said Dr. Son.
