Two banks, OceanBank (new name MBV) and Vietnam Construction (CB) will be officially and compulsorily transferred to MB and Vietcombank respectively from October 17, 2024 according to the decision of the State Bank of Vietnam (SBV).

As planned, this week, the State Bank will officially announce the decision to transfer the remaining two banks, Global Petroleum Commercial Joint Stock Bank (GPBank) and Dong A Commercial Joint Stock Bank (Dong A Bank).

Previously, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) both consulted shareholders on the mandatory transfer of a bank.

At the recent Government-locality conference, SBV Governor Nguyen Thi Hong also announced that the Government has issued a resolution on the compulsory transfer of GPBank and Dong A Bank. SBV will hold a ceremony to announce the decision to transfer these two banks “in the next few days”.

It is understood that the announcement ceremony for the transfer decision is expected to take place this week.

Transferring a weak bank to a large, strong commercial bank with solid potential is a condition for comprehensive restructuring and gradually reviving the weak bank.

As in the case of MBV and CB, after being transferred to MB and Vietcombank, these two "zero-dong banks" continued to maintain the model of a single-member limited liability commercial bank.

After becoming a member of the MB Group ecosystem, MBV has taken on a new, more youthful and modern look, with the highlight being the bank changing its brand identity and name from OceanBank to MBV.

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OceanBank changed its name to MBV after being transferred to MB. Photo: MBV.

According to Ms. Nguyen Minh Hang, Director of MB Bank Investment, since receiving the transfer, MB has transferred new technology to help MBV quickly complete its organizational structure and has developed a specific plan for 2025.

“We believe that MBV will develop in 2025,” said Ms. Nguyen Minh Hang.

According to Mr. Pham Nhu Anh, General Director of MB Bank, after 3 months of taking over, MB is transferring technology as well as MB's ownership platform to MBV to revive this bank.

"Hopefully in the coming time, MBV's operations will improve and soon become a bank with healthy indicators," the MB general director shared.

Mr. Pham Nhu Anh said that MB will sell the profitable debt to MBV, MBV can use that debt to borrow from the Government and the State Bank with an interest rate of 0%, thereby generating profit for MBV.

However, MB's leaders only revealed the general mechanism for MBV, he did not disclose specific numbers.

Taking over a weak bank will help banks like Vietcombank, MB, VPBank and HDBank get higher credit growth limits.

Ms. Nguyen Thi Thanh Nga, Chief Financial Officer of MB Bank, expects MB's credit growth rate to increase sharply next year thanks to the integration of MBV into the ecosystem. MB aims to increase credit growth by 25% in 2025, equivalent to an increase of about VND 200,000 billion, with 50% of the credit room being prioritized for the retail segment.

In addition to the four banks that have been and are about to be forced to transfer, namely CB, MBV, GPBank and Dong A Bank, Saigon Commercial Joint Stock Bank (SCB) is currently being put under special control by the State Bank of Vietnam from October 2022. The State Bank of Vietnam is still applying measures to maintain the stable operation of SCB, ensure the safety of customer deposits, and at the same time handle existing problems, weaknesses and violations in accordance with legal regulations.

At the same time, the State Bank is also developing a restructuring plan for SCB to submit to competent authorities for approval as soon as possible.

SBV to forcefully transfer 2 weak banks 'in the next few days' After OceanBank and CBBank, SBV will hold a ceremony to announce the decision and hand over the remaining two weak banks, GPBank and Dong A Bank.