The State bank of Vietnam has eliminated 17 weak financial institutions and banks after 4 years of restructuring, according to recent report. Through mergers, acquisitions and nationalisations the State Bank has helped improve the transparency of the banking system.
Nguyen Huu Nghia, Chief Inspector of the State Bank of Vietnam said: The basic goals of the restructuring have been achieved. The safety of the credit system has also improved. Credit growth meets the demand of the economy and bad debt is brought to 3 per cent.
Le Xuan Nghia, Former Deputy head of the National Financial Supervisory added: We have consolidated the transparency of the banking system. Several banks also volunteered to merge. The State Bank has nationalised some very weak banks.
Although many weak banks have been closed, customers seem happy enough to see the sector being reformed.
"Before I deposit my money at the Hahubank. When it was merged with SHB, I was a little worried. But I trust the commitment of bank to look after my savings.", Van Anh, Bank customer said.
The conference also pointed out that more inspections have been carried out to handle violations in commercial banks. The initial results of banking restructuring have contributed to improving the competitiveness of the economy. Yet more efforts are needed to ensure that bad debt handled and the bank system is reformed in the coming time./.
