SGGPO
Saigon Commercial Bank (SCB) has been placed under special control since October 2022. Based on the overall assessment report of the current situation as well as the proposed policy of SCB and the SCB special control board, the State Bank has submitted to the Government for consideration and decision on the policy of restructuring SCB according to regulations.
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| The State Bank has also submitted to the Government for consideration and decision on the policy of restructuring SCB Bank according to regulations. |
This is a content in the Government's report recently sent to the National Assembly and the National Assembly Standing Committee on the implementation of a number of thematic supervision and questioning resolutions since the beginning of the 15th National Assembly's term until now.
Accordingly, in the banking sector, the State Bank has so far submitted and received approval from competent authorities for the policy of compulsory transfer of 4 specially controlled banks, including: CBBank, OceanBank, GPBank and DongABank. The relevant parties are continuing to implement the following contents after the policy is approved by competent authorities. After that, the State Bank will submit to the Government for approval the restructuring plan of these banks.
As for Saigon Bank (SCB) - which has been placed under special control since October 2022 - based on the overall assessment report and proposed policies of SCB and the SCB special control board, the State Bank has also submitted to the Government for consideration and decision on the policy of restructuring SCB according to regulations.
Previously, in Resolution 144 of the regular Government meeting in August, the Government requested the State Bank to focus on handling weak banks, including reporting to competent authorities on the plan to handle SCB Bank in September, without further delay.
In addition, non-bank credit institutions are also actively implementing restructuring plans approved by competent authorities. The State Bank is studying the restructuring plan and orientation of some weak non-bank credit institutions. This is to propose a plan and submit it to competent authorities for approval.
Examining this content, the National Assembly's Finance and Budget Committee recognized that the search and negotiation for banks that are qualified to receive mandatory transfers (weak financial capacity, management, and experience in credit organization structure) is long and difficult due to the large dependence on the voluntary participation of banks.
On the other hand, banks also need time to convince shareholders, especially strategic and foreign shareholders, to agree to participate in the compulsory transfer. The mechanism and financial resources to handle weak credit institutions still have many shortcomings, obstacles, and lengthy procedures.
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