New fate of two banks 0 dong
Two “zero dong” banks CBBank and Oceanbank have been planned by the Government to deal with and cannot exclude the possibility of being transferred to two big banks.
In a recent report sent to the National Assembly Standing Committee, the Government said that it has implemented many solutions to handle 3 banks with compulsory acquisition (CBBank, OceanBank, GPBank) and Dong A Bank.
Measures taken include looking for partners, negotiating with investors who wish to participate in the bank’s restructuring, at the same time, rearranging the operating network, reducing costs, and implementing activities. safe business…
In which, two out of three banks for compulsory acquisition, Construction Bank (CBBank) and Ocean Bank (OceanBank) have a plan to handle it, the report said.
At the end of April this year, the plan to participate in the restructuring of the weak bank was also announced at the shareholder meeting of two big banks, Bank for Foreign Trade (Vietcombank) and Military Bank. The leaders of these two banks have not disclosed the specific bank that will be merged, however, the scenario has gradually been revealed.
At OceanBank’s 2022 business case implementation conference, Mr. Luu Trung Thai, Vice President of Military Bank (MB) was present at the conference and spoke as a guest. MB’s vice president said: “The cooperation with OceanBank is both a political task and an opportunity for MB”. According to the roadmap of the State Bank that has been approved by the Government, MB will coordinate with OceanBank to check, systemize the data and develop a plan to submit to the Government.
MB leaders added that, under the direction of the State Bank, MB will discuss with OceanBank leaders to design a suitable program for OceanBank, in which the core is the way of working in the future.
At MB’s annual meeting, this bank did not mention “cooperation with Oceanbank”, but said that the compulsory transfer of a credit institution gives MB the opportunity to grow in scale. If the restructuring fails, MB cannot return the “zero bank” to the State but can sell it as an investment or convert it to a joint stock bank by IPO. If the restructuring is successful, the bank can merge into MB to help increase the size of MB’s assets, Mr. Thai said.
For a long time, OceanBank’s two biggest difficulties have been dealing with accumulated debts and losses. By the end of 2019, this bank had accumulated losses of more than 17,900 billion VND. However, in the last 4 years, they have continuously reduced their accumulated losses, 2021 is also the year with the lowest loss since 2016 until now.
With the remaining weak unit, Construction Bank (CBBank), Vietcombank has participated in supporting governance, administration and signed a comprehensive strategic cooperation agreement with this bank since 2014, a difficult period. most difficult. By the end of 2019, CBBank had accumulated losses of more than 31,000 billion VND.
At the 2022 general meeting of shareholders, Vietcombank Chairman Pham Quang Dung said that the bank is still in the process of developing a plan, it is not possible to confirm which credit institution will be transferred and when.
The head of Vietcombank affirmed that regardless of the entity, with the support of the State Bank and the Government, Vietcombank is capable of bringing this credit institution back to normal operation. The specific route has not been taken into account yet because it depends on the financial situation of the transferred bank, the size and extent of support measures, and market developments, although the expected processing time is not more than 8-10 years.
at Blogtuan.info – Source: vnexpress.net – Read the original article here