Three commercial banks agree on merger

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Nhân dân English - 74 month(s) ago 11 readings

Three commercial banks agree on merger

Three Ho Chi Minh City-based commercial banks agree to merge into a larger bank to avoid a liquidity crunch.

SBV Governor Nguyen Van Binh made the announcement at a briefing before the annual Consultative Group Meeting for Vietnam yesterday morning.

The merger deal is the SBV’s first move in its plan to restructure the country’s banking system, which has experienced difficulties due to adverse macroeconomic conditions and the tightening of monetary policies.

The three Ho Chi Minh City-based banks have recently been facing temporary liquidity problems and their leaders have voluntarily agreed to the merger following the central bank’s cash injection, said Governor Nguyen Van Binh.

He assured depositors that their interests in those banks are safe as the SBV had ensured their liquidity and will be involved in the merged bank.

The SBV said it has assigned the State-owned Bank for Investment and Development of Vietnam (BIDV), one of the country’s largest lenders by assets, to represent the State’s stake in the new entity.

The State’s stake will be disclosed after the audit results from the three banks are published, said the Governor.

Earlier in October, the central bank announced its plan to comprehensively reform Vietnam’s vulnerable banking sector. The SBV said it expects to complete the assessment and classification of commercial banks by March 2012.

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