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Banking & Finance

Control relaxed at SBV-acquired banks

Released at: 10:05, 07/10/2015

Control relaxed at SBV-acquired banks

Better operations sees control over three banks eased but supervision continues.

by Son Ho

The State Bank of Vietnam (SBV) has loosened its control over the three banks it recently took over (VNCB, GPBank, and OceanBank) as they have seen positive changes in their activities. In particular, none have had to borrow special capital to cover deposits.

"They all have excess liquidity - VND7 trillion ($311.78 million) at OceanBank, VND3 trillion ($133.62 million) at GPBank, and VND1 trillion ($44.54 billion) at VNCB," Mr. Nguyen Huu Nghia, Chief Inspector at the SBV, told local media. This is also one of the main factors in the SBV loosening its control. It has also allowed credit growth to return to secure lending areas.

He said that bad debts and unprofitable assets have been initially addressed and recovered. New deposits have increased, large cash withdrawals by customers have ceased, and governance has been strengthened.

There is still some direct involvement in their governance and management, with support from Vietcombank and VietinBank, and the SBV is maintaining its strict supervision.

The SBV bought the three banks at a price of VND0 per share, as their equity was in negative territory and they could not resolve their problems on their own.

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