Licenses of two foreign banks revoked
Licenses of two foreign banks revoked
The central bank has withdrawn the licenses of two foreign banks, Laos-Vietnam Joint Venture Bank and Credit Agricole Bank, according to a State Bank of Vietnam’s (SBV) report to the National Assembly Standing Committee.
The SBV has also closed branches of two other foreign banks, ANZ and Shinhan. At present, the central bank is dealing with procedures to close two branches of HSBC and Standard Chartered Bank.
The report also said that the local Maritime Bank is acquiring the Textile-Garment Financial Company while the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is acquiring the Chemical Financial Company. Both affairs have been approved by the SBV.
The central bank has also allowed the merger of Vinaconex Viettel Finance Joint Stock company and the Saigon - Hanoi Commercial Bank (SHB).
The state bank has also ratified the restructuring plans of all eight foreign non-banking credit institutions, including three financial leasing companies (VILC, KVLC, CILC) and five financial firms (Toyota, Prudential, Mirae Asset, PPF, JACCS).
SBV Governor Nguyen Van Binh on September 29 attended a Q&A session at the ongoing 31st meeting of the National Assembly Standing Committee, during which he focused on clarifying issues relating to bad debts and credit growth.
He said July reported the lowest monthly increase of 0.79% in bad debt growth, a remarkable decrease compared to June’s 21.5%. Bad debts had by the end of July totalled VND162.2 trillion (US$7.62 billion), accounting for 4.11% of the total outstanding debt. So far this year, about VND105 trillion (US$4.935 billion) worth of bad debts have been handled.
The Vietnam Assets Management Company (VAMC) proved effective when it purchased nearly VND60 trillion worth of bad debts from 35 credit institutions, as of September 1. The central bank’s head agreed with several NA deputies’ opinions of handing over more tools in dealing with bad debts to the VAMC. He also proposed raising the company’s chartered capital from VND500 billion to VND2 trillion.
vietnamnet
