Gov’t urges complete restructuring plan for vulnerable SCB

Gov’t urges complete restructuring plan for vulnerable SCB

After the SBV completed the compulsory transfer of four weak banks — CB, Oceanbank, DongA Bank and GPBank — earlier this year, SCB remains the only weak bank yet to complete its restructuring plan.

After facing a bank run in October 2022, SCB was taken over by the central bank to minimise the negative impact to SCB customers and the overall banking sector. — Photo cafef.vn

The Government has called on the State Bank of Vietnam (SBV) to urgently complete a restructuring plan for the vulnerable Saigon Commercial Joint Stock Bank (SCB) before September 15 this year, according to a recent Government resolution.

After the SBV carried out the compulsory transfer of four weak banks — CB, Oceanbank, DongA Bank and GPBank — to Vietcombank, MB, HDBank and VPBank earlier this year, SCB remains the only weak bank yet to complete its restructuring plan.

Following a bank run in October 2022, SCB was taken over by the central bank to minimise negative impacts on its customers and the wider banking sector.

In a report on the banking industry, Viet Dragon Securities Company (VDSC) cited data from the Vietnam Banks Association, stating that non-performing loans (NPLs) on the banking system’s balance sheet rose by approximately 4.98 per cent, from VNĐ778 trillion at the end of 2024 to VNĐ833 trillion at the end of February 2025.

Under the new resolution, the Government has also directed the SBV to implement approved compulsory transfer plans for weak and specially controlled banks effectively.

The Government has further required the SBV to strengthen inspection, supervision, prevention and handling of negative behaviours, corruption and group interests in banking activities.

The resolution emphasises the need to accelerate the increase of charter capital in State-owned commercial banks, direct credit institutions to manage bad debts effectively, strictly control lending in high-risk areas and enforce compliance with the law. 

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