Small banks merging into bigger banks is becoming a growing trend inVietnam.The State Bank of Vietnam (SBV) said it wants to reduce thenumber of commercial banks by half after three years, according to anarticle published on the English language news website VietNamNet Bridgeon April 16.
A senior official of the State Bank of Vietnam saidmore merger and acquisition (M&A) deals will be announced in thenear future.
PG Bank’s board of management is going to submit thebank’s restructuring plan to the shareholders’ meeting, slated forApril 18, under which the bank would merge into another big bank. Asource from the bank said “VietinBank has shown its goodwill forcooperation.”
VietinBank is one of the biggest commercial banks in Vietnam, and one in which the State holds the controlling stakes.
Ifthe suggested plan on merging into VietinBank gets approval fromshareholders, PG Bank would become a subsidiary of VietinBank.Meanwhile, PG Bank’s apparatus, brand name and operation would beretained. As such, once the deal is completed, PG Bank would become “abank in a bank.”
However, VietinBank has not released any information about the deal.
Somedays ago, Southern Bank’s shareholders discussed the bank’s board ofmanagement’s proposal on merging into Sacombank. Meanwhile, the MekongDevelopment Bank (MDB) is reportedly seeking permission to merge intoMaritime Bank.
MDB, which has chartered capital of 3.75 trillionVND, and Maritime Bank, with chartered capital of 8 trillion VND, havereportedly fulfilled 50 percent of the milestones needed for the merger.It is expected that the deal will be completed by July.
Thoibao Kinh Te Saigon has quoted its sources as saying that the State Bankof Vietnam has agreed in principle to the merger plans submitted bySouthern Bank and Sacombank, and MDB and Maritime Bank.
A reportof the Ban Viet Securities Company released on April 11 revealed thatVietcombank is considering the possibility of admitting a small bank.The bank’s board of management is consulting with its shareholders aboutthe plan at the shareholder’s meeting to be held on April 23. However,it is still unclear which bank Vietcombank is targeting.
Theabove said senior official of the SBV said instead of buying weak banks’shares to recover them, the watchdog agency now tends to encourage bigbanks to admit small banks to restructure them.
The official saidthe new solution can help speed up the banking system restructuringprocess because it allows for saving on costs and time. What the SBVneeds to do is to create best conditions for commercial banks to fulfillthe procedures after their shareholders’ agree on the M&A plans.
SBVGovernor Nguyen Van Binh, at the government’s regular meeting in lateMarch, said that after the first nine banks are successfullyrestructured, another 6-7 banks will also undergo restructuring throughM&A.
The central bank kicked off the bank restructuringprocess in late 2011 when it realised that there were many weak bankswhich needed reshuffling.
Several successful M&A deals havebeen completed so far, including Tin Nghia-De Nhat-SCB, Habubank-SHB,and Western Bank-PVFC.-VNA
A senior official of the State Bank of Vietnam saidmore merger and acquisition (M&A) deals will be announced in thenear future.
PG Bank’s board of management is going to submit thebank’s restructuring plan to the shareholders’ meeting, slated forApril 18, under which the bank would merge into another big bank. Asource from the bank said “VietinBank has shown its goodwill forcooperation.”
VietinBank is one of the biggest commercial banks in Vietnam, and one in which the State holds the controlling stakes.
Ifthe suggested plan on merging into VietinBank gets approval fromshareholders, PG Bank would become a subsidiary of VietinBank.Meanwhile, PG Bank’s apparatus, brand name and operation would beretained. As such, once the deal is completed, PG Bank would become “abank in a bank.”
However, VietinBank has not released any information about the deal.
Somedays ago, Southern Bank’s shareholders discussed the bank’s board ofmanagement’s proposal on merging into Sacombank. Meanwhile, the MekongDevelopment Bank (MDB) is reportedly seeking permission to merge intoMaritime Bank.
MDB, which has chartered capital of 3.75 trillionVND, and Maritime Bank, with chartered capital of 8 trillion VND, havereportedly fulfilled 50 percent of the milestones needed for the merger.It is expected that the deal will be completed by July.
Thoibao Kinh Te Saigon has quoted its sources as saying that the State Bankof Vietnam has agreed in principle to the merger plans submitted bySouthern Bank and Sacombank, and MDB and Maritime Bank.
A reportof the Ban Viet Securities Company released on April 11 revealed thatVietcombank is considering the possibility of admitting a small bank.The bank’s board of management is consulting with its shareholders aboutthe plan at the shareholder’s meeting to be held on April 23. However,it is still unclear which bank Vietcombank is targeting.
Theabove said senior official of the SBV said instead of buying weak banks’shares to recover them, the watchdog agency now tends to encourage bigbanks to admit small banks to restructure them.
The official saidthe new solution can help speed up the banking system restructuringprocess because it allows for saving on costs and time. What the SBVneeds to do is to create best conditions for commercial banks to fulfillthe procedures after their shareholders’ agree on the M&A plans.
SBVGovernor Nguyen Van Binh, at the government’s regular meeting in lateMarch, said that after the first nine banks are successfullyrestructured, another 6-7 banks will also undergo restructuring throughM&A.
The central bank kicked off the bank restructuringprocess in late 2011 when it realised that there were many weak bankswhich needed reshuffling.
Several successful M&A deals havebeen completed so far, including Tin Nghia-De Nhat-SCB, Habubank-SHB,and Western Bank-PVFC.-VNA
