Late last year, Viet Thai Bank and Rubber Financial Company had their licenses revoked and operations annulled. A total of 21 weak credit institutions have undergone such scrutiny.
"Vietnam’s bank restructuring efforts have achieved two targets. First, it has helped avoid the ruin of the commercial banking system, especially in late 2011 and early 2012 when it was in critical danger. Second, it has solved the liquidity issue and 10 weak banks were merged into one through M&A’s and nationalization", said an economist.
Economists have also pointed out that the restructuring of banks will affect interest groups, which will generate strong opposition.
The State Bank of Vietnam is determined in restructuring the coutnry’s banking system. And more banks will be forced to close or merge with others.
In the context of global integration, the banking system cannot wait further. It must be solidified and operate according to international conventions and standards.
