Governor talks of future moves after its takeover of VNCB.
The State Bank of Vietnam will continue to buy more commercial banks after its acquisition of VNCB (Vietnam Construction Bank, previously known as Trust Bank) at no cost.
State Bank Governor Nguyen Van Binh shared his views on the handling of VNCB for the first time earlier this week, which he referred to as being “consistent with Vietnam’s regulations and international practice.”
He explained that once shareholders of VNCB had lost all their capital and even used up social capital they had mobilized then it was clearly necessary for the State Bank to step in to stabilize the system and ensure the legitimate interests of businesses and people involved with the bank.
“A number of other banks will be handled in a similar manner in the time to come and there will be more acquisitions by the State Bank,” the Governor said. “Even healthy banks may be acquired and merged to create larger ones that perform better.”
The Governor also disclosed his ambition to deal with six to eight more banks this year.