VietNamNet Bridge – It is expected that the plans to
restructure some commercial banks will be approved in the last months of the
year. However, the target of settling all weak banks within 2012 proves to be
unattainable.
Governor of the State Bank of
Vietnam Dao Minh Tu said on Dau tu newspaper, that except Habubank, there has
been no optimal bank restructure plan submitted to the State Bank for
consideration.
“The State Bank has been trying
to speed up the merger and acquisition process. However, the process would
still depend on whether the involved banks can draw up optimal solutions that
can ensure the benefits of all the involved parties,” Tu said.
He went on to say that commercial
banks have been meeting with each other to discuss the merger and acquisition
on the voluntary basis.
A senior official of the State
Bank said that a lot of such meetings have been made recently, including the
meetings between Vietnamese banks and foreign investors. However, learning the
lesson from Habubank case, where the information leaked, banks now try to keep
all relating information confidential.
It happened in the past that some
affairs, which nearly got successful, broke down in the last minute, because
the two parties could not reach consensus on some issues. Therefore, the
information leaking would not be good for the market.
However, banking experts have
predicted that some merger and acquisition deals would be approved
Nguyen Thi Mai Suong, Director of
the Hanoi branch of the State Bank of Vietnam, said Hanoi has three banks that
need restructure. Of these, two banks have finished the drafting of the
restructure plans.
Tien Phong Bank, for example, has
got the nod from the government on its plan to self-restructure. Meanwhile,
Habubank has also officially merged into SHB.
As such, GP Bank is the only bank
from which the State Bank expects a restructure plan. To date, Suong has not
received any information about the restructure plan from the bank.
Meanwhile, in HCM City, analysts
now keep an eye on the banks which once received warnings from the State Bank
for their violation in credit activities.
TTVN newswire has reported that
Saigonese have heard the news about the possible merger deal of a finance
company and a bank in the city.
Rumors have been spread out on
the market about the merger and acquisition deal of PVFC, a finance company,
subsidiary of PetroVietnam.
Nguyen Thien Bao, General
Director of PVFC, once stated that the company is considering turning into a
commercial bank. The plan may be implemented if PVFC can have a merger deal
with a commercial bank.
However, a new problem would
arise that if PVFC successfully turns into a commercial bank, PetroVietnam
would have capital contribution to two banks, PVFC and Oceanbank. As such,
PetroVietnam would have to withdraw its investment capital from one of the two
banks, because the current laws do not allow this.
In early 2012, the State Bank of
Vietnam stated that 5-8 banks would be merged right in the first quarter of
2012. However, only two banks have finished the restructure plan so far, by the
end of the third quarter, while the Habubank – SHV is the first merger deal.
Dau tu has quoted its sources as
saying that the bank restructure process has been slowing down due to the
conflicts of the groups’ interests. Once the difficult period is over, banks
may try to delay the restructure for their benefits. If so, the banking system
would be threatened.
To Quoc newspaper has quoted an
expert as saying that the State Bank should not only encourage the merger, but
it also needs to apply drastic measures to put pressure on the banks, urging
them to get restructured.
Compiled by C. V
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