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SBV to beef up banking restructuring efforts

by VTV408 January 2016 Last updated at 15:44 PM

VTV.vn-Toward the end of 2015, a series of credit institutions were revoked of their licenses and forced to close. The State Bank of Vietnam has announced that more banks will close in the coming time because the country should have only 15-20 banks.

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.

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