The Bank for Investment and Development of Vietnam (BIDV) signed a comprehensively strategic cooperation agreement with the First Joint – Stock Commercial Bank (Ficombank), the Tin Nghia Joint – Stock Commercial Bank (TinNghiaBank) and the Saigon Joint – Stock Commercial Bank (SCB) in Ho Chi Minh City on December 6.
All the parties to this agreement will cooperate with one another in the fields of governance, control, capital resources and money trading, credit, trade financing, international and domestic settlement, treasury, card payment, information exchange, training and others on the basis of requirement and capacity of each party in line with law.
In regard to governance and control, all the parties agreed that following the merger of the FicomBank, the TinNghiaBank, and SCB, under its charter, the merged bank will convene the General Shareholders’ Meeting to elect the Board of Directors, the Control Board, the Management Board. BIDV will assign its representatives to join these Boards.
In regard to capital resources and money trading, the BIDV will provide the FicomBank, the TinNghiaBank and the SCB a common quota which will be managed by the merged bank to repay their depositors. When a party has the demand for deposits or foreign exchange trading, the other parties may make proper preferential offers. The parties commit to assisting each other in carrying out the required transactions of capital and money trading under the specific contracts within the limits of periodical quota set for each other.
In regard to settlement, retail banking service, derivatives, project co-funding, non-life insurance, securities-trading-investment-brokerage, leasing ... the BIDV commits to providing priority support in line with law.
Currently, all the parties agree to actively make two-way information exchange on such fields as risk management of enterprises and projects, exchange rates and interest rates, international and domestic gold price, new products and services to customers....
The cooperation agreement between the BIDV and the three banks is a specific action in the banking restructuring plan of the State Bank of Vietnam and the Government with the aim of actively supporting the merged bank with better governance, stronger finance and a larger network.