Five months since its acquisition, Ocean Bank has re-established its operations and established deposits of 19 million USD. The bank has now seen government special supervision lifted.
"We’ve resolved more than 136 million USD of bad debt, 18 million USD of which through selling assets. Deposits have increased to around 19 million USD. It means that people still have trust in Ocean Bank." - Ngo Anh Tuan, Director, Ocean Bank.
"After the acquisition, the State Bank can merge or resell the three banks. And if this resale goes ahead it’ll be bigger than 0 USD. The difference will go to the state budget." - Tran Hoang Ngan, National Assembly Deputy, HCM City.
However, people have also questioned of decision to acquire the 3 banks by the State Bank of Vietnam.
"There could be other alternatives such as maintaining the banks, merging, or letting them file for bankruptcy. However, these alternatives weren’t the best solutions in reality. Filing for bankruptcy is common in developed countries. However, it can negatively affect confidence in the currency." - Truong Thanh Duc, Lawyer, Vietnam Banking Association.
According to the State Bank, they have adequate legal arguments for their actions. According to Article 149 in the Law on Credit Institution, State Bank of Vietnam can buy banks if they fail to perform. The prices would be calculated based on the value of the banks. In this case, the 3 banks acquired have negative equity.
"The acquisition in this case is like buying and selling stocks. The State Bank of Vietnam can buy and sell stocks in these banks when necessary. The SBV’s actions were based on a legal framework and the prime minister’s guidance." - Truong Thanh Duc, Lawyer, Vietnam Banking Association.
The acquisitions proved a success, with the banks involved, boasting improved business operations. Thanks to the actions of the state bank, shareholders’ and depositors alike have had their trust restored.
