How will the bank operate after the mandatory transfer?

10/19/2024 06:39

After the transfer, CB will operate independently. (Photo: Tuoi Tre)

(PLVN) - After many years of implementing the process and going through approval steps, Construction Bank (CB) and Ocean Bank (OceanBank) have been officially transferred to Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Military Bank (MB) respectively. After the transfer, how will the banks operate?

Customer rights are guaranteed

According to the State Bank of Vietnam (SBV), compulsory transfer is one of the options to restructure specially controlled credit institutions, as stipulated in the Law on Credit Institutions. This is one of the solutions to restructure the system of credit institutions associated with bad debt settlement to contribute to ensuring macroeconomic stability, national financial and monetary security, political stability and social order and safety.

This issue has been of concern to competent authorities, and has been strongly directed by the Government and the Prime Minister; the State Bank has closely coordinated with ministries, branches and relevant agencies to direct banks to develop a compulsory transfer plan and submit it to competent authorities for approval in accordance with legal regulations.

The goal of the transfer is to gradually restore normal operations, overcome weaknesses, and gradually turn the two banks into banks with healthy financial status, ensuring the ability to operate continuously.

The State Bank of Vietnam affirmed that Vietcombank (VCB) and MB are leading commercial banks with sufficient capacity, experience and solid foundation to successfully implement compulsory transfer plans. At the same time, with the mechanism applied according to legal regulations, receiving compulsory transfer is also an opportunity for VCB and MB to expand operations and implement new business models.

The representative of the State Bank also said that after the mandatory transfer, CB and OceanBank will continue to operate as a single-member limited liability bank with 100% charter capital owned by VCB and MB; and will be allowed to carry out commercial banking activities according to regulations. All legitimate rights of depositors; rights and obligations of customers at CB and OceanBank will continue to be guaranteed in accordance with the agreement and legal regulations.

At the press conference on the results of banking activities in the third quarter, Mr. Nguyen Duc Long - Deputy Chief Inspector of the State Bank of Vietnam's Inspection and Supervision Agency affirmed that the two banks receiving the transfer will have their own support mechanisms and policies, depending on each bank, but still ensuring compliance with legal regulations.

Can the bank be sold to a new investor?

VCB representative said that after the compulsory transfer of CB to VCB, VCB will have the conditions to expand its business scale, customer base, and network; can accept mergers, maintain CB as a subsidiary bank or sell/transfer CB to new investors during and after the end of the compulsory transfer plan.

CB continues to operate as a one-member limited liability bank with 100% charter capital owned by VCB; and is allowed to conduct commercial banking activities according to regulations. All legitimate rights of depositors; rights and obligations of customers at CB continue to be guaranteed in accordance with the agreement and legal regulations.

Notably, VCB said that CB is an independent legal entity and does not consolidate financial statements into VCB's consolidated financial statements. In addition, VCB exercises the rights of the owner of CB according to regulations and does not contribute capital to CB during the period when CB has accumulated losses; VCB participates in governance, operation and implementation of support measures such as compulsory transfer plans approved by competent state agencies.

At the same time, VCB and CB are entitled to apply support measures according to the provisions of the Law on Credit Institutions and relevant legal provisions approved by competent authorities.

MB representative said that after the transfer to MB, the legal rights of depositors and customers at OceanBank are guaranteed in accordance with the agreement and legal regulations; OceanBank's service activities are guaranteed to be smooth and continuous. MB will prioritize resources from business development, capital, technology, human resources... to support new members. OceanBank continues to promote business activities and sustainable and effective development, increase financial and technological capacity, and actively contribute to the overall development of the economy.

MB's Board of Directors also decided to appoint Mr. Le Xuan Vu, Member of MB's Executive Board, as MB's representative, to take on the position of Permanent Deputy General Director of OceanBank. With nearly 30 years of experience and many years of holding senior management positions at prestigious credit institutions, especially in the field of banking transformation and modernization, MB's leaders expect Mr. Vu to contribute to increasing OceanBank's management and operational capacity in the coming time.

Source: https://baophapluat.vn/ngan-hang-sau-chuyen-giao-bat-buoc-se-hoat-dong-ra-sao-post529036.html