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Banking & Finance

SBV may purchase two banks

Released at: 17:31, 02/03/2015

SBV may purchase two banks

Central bank may take on GPbank and Oceanbank as part of bank restructuring process.

by Hung Nguyen

The State Bank of Vietnam (SBV) has indicated it may purchase 100 per cent of shares at GPbank and Ocean Bank though more time will be needed to complete such a move, a leader at the central bank told Saigon Times.

GPbank was one of nine banks directed to reorganize in 2012 but has failed to do so. At the beginning of 2014 an international bank based in Vietnam was put forward as a potential suitor but the SBV disagreed with some certain aspects of the proposed buy.

Regarding Oceanbank, three of its former leaders have been arrested over irregularities in lending activities last year, leading to calls for its restructure.

The SBV must audit and valuate the two banks to determine their exact value, which is why more time is needed before any particular move is made.

Other mergers and acquisitions are to be conducted this year in the banking sector, for example between SaigonBank and Vietcombank and Southern Bank and Sacombank.

The SBV is also calling for State-owned banks to become involved more in the process of bank restructuring by purchasing stakes in weak banks.

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