The major operation succeeds at 8/9 weak banks
The major operation succeeds at 8/9 weak banks
The compulsory restructuring of 8 out of the 9 weak banks has completed successfully.
Nine of the weakest banks were then found to be forced to a compulsory restructuring. Despite some big difficulties, including the opposition from some big shareholders, the “anaesthetization” for the “major operation” was successfully implemented.
By the end of the first half of 2012, the banking system’s liquidity had been improved.
It is expected that PVcomBank, established after the merger of PVFC and Western Bank, will present itself before the public on October 3.
In early 2013, Western Bank set up a special team to deal with the troubles if they occur. However, it was lucky enough that the team did not have job to do, because the massive cash withdrawal and the liquidity crisis did not occur.
Since the second half of 2012, people have been hearing the information about bank restructuring in a calm manner. No negative actions which may badly affect the banking system’s stability have occurred. This is considered the biggest success over the last two years.
Analysts have commented that the banking system restructuring has been carried out “peacefully,” though there always exist the battles among the groups of interests.
As such, the problems of the 8 out of the 9 banks have been settled. As for the ninth bank, sources said it would receive the investments from a foreign bank to recover. If this happens, this would be for the first time foreigners join the progress of the Vietnamese banks’ restructuring.
Dominic Scriven from Dragon Capital, in an interview given to Dien dan Doanh nghiep newspaper, noted that it would be difficult to attract foreign investors, if Vietnam only allows one strategic investor to hold no more than 20 percent, and allows all the foreign investors to hold no more than 49 percent of the bank’s total capital.
Eight out of the 9 weakest banks have found the ways they need to follow. The State Bank of Vietnam, the banks’ shareholders and people now can sigh with relief that the danger is over, though it is still too early to say the banks would develop strongly in the future.
The ninth bank’s problems are believed to be settled this year. However, it is still unclear how many “weak banks” existing in the Vietnamese banking system.
In the documents sent to press agencies last week, the State Bank said that besides the 9 weakest banks found in early 2012, the bank will re-consider the banking system and find out weak credit institutions to ask them to build up the restructuring plans.
The plans will be submitted to the central bank for approval, so as to settle the biggest problems of the institutions within 2013.
This could be understood that the nine banks are not the only weak banks in Vietnam to be handled with. It seems that the big difficulties of the national economy over the last two years have helped find out other problematic banks.
vietnamnet
