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Banking & Finance

Maritime Bank and MDB to merge

Released at: 09:21, 24/03/2015

Maritime Bank and MDB to merge

SBV accepts coming together of two banks.

by Hung Nguyen

The Governor of the State Bank of Vietnam (SBV) signed Document No. 1607/NHNN-TTGSNH on March 18, accepting in-principle the merger between the Vietnam Maritime Commercial Stock Bank (Maritime Bank) and the Mekong Development Joint Stock Commercial Bank (MDB), which is part of the restructuring plan proposed by both banks.

The merger was agreed to by shareholders at both banks at their 2013 annual general meetings.

Maritime Bank is the largest shareholder of MDB, with a stake of around 10 per cent. With the merger it no longer needs to be concerned about requirements in Circular No. 36 that forbids a bank from cross-holding more than 5 per cent in another financial institution.

Neither Maritime Bank nor MDB have been the subject of any forced restructure under the SBV's direction. The post-merger institution will have total charter capital of VND11.8 trillion ($547.75 million), with VND8 trillion ($371.36 million) coming from Maritime Bank and VND3.75 trillion ($174.07 million) from MDB.

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