Industry insiders
are weighing up banking sector mergers and acquisitions.
In the past week, banks’ mobilisation rates have heated up with the
roll-out of diverse promotion programmes.
Negotiations for higher than
regulated ceiling deposit rates reportedly came back and depositors might enjoy
15-19 per cent mobilising rates depending on deposit amounts against the
central bank regulated 13 per cent, per year ceiling rate.
The rate hike race has threatened banking system security and hurt the
government’s commitment to gradually drive down interest rates.
“Inflation has trended downward, but interest rates could not be eased
quickly due to a liquidity drought at banks. Hence, to improve liquidity, it is
essential to tackle weak banks,” said senior economist Vo Tri Thanh.
Several cases of bank mergers and acquisitions (M&A) are reportedly
to be seen in early April. In fact, apart from Eximbank and Sacombank or
Habubank and SHB, some other banks like Maritime Bank and Dong A Bank also
unveiled stock purchase plans in other banks.
But, the current legal framework remains unclear.
Mayer Brown law firm director Nguyen Hoang Anh said in many countries,
banking M&A took place when relevant laws were in place.
“It is crucial to ensure smooth M&A cases,” said Anh.
A senior lawyer who wanted not to be named said it would be almost
impossible to promote banking M&As based on current laws. “For instance, as
per existing regulations it is necessary to inform creditors about bank
transfer. A bank currently has around 50,000 depositors, this means banks must
acquire approval from these 50,000 creditors before M&A takes place,” said
the lawyer.
Economic expert Vu Thanh Tu Anh assumed current banking sector
restructuring process has over-emphasised helping underperformed banks. “The
central bank’s announcement to not let any bank collapse is rewarding
disobedient banks,” he said.
Ha Tam | vir.com.vn
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