On October 17, 2024, the State Bank of Vietnam announced the decision to compulsorily transfer Vietnam Construction Commercial Joint Stock Bank (CB) and Ocean Commercial Joint Stock Bank (OceanBank), 100% owned by the State, to Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank) and Military Commercial Joint Stock Bank (MB), respectively, according to the plan approved by the Government.

Compulsory transfer is one of the options for restructuring specially controlled credit institutions stipulated in the Law on Credit Institutions. The compulsory transfer of CB to VCB and OceanBank to MB is carried out in accordance with current laws and approved by competent authorities with the goal of gradually restoring normal operations, overcoming weaknesses, and gradually turning the two "zero-dong" banks into banks with healthy financial status, ensuring the ability to operate continuously.

The State Bank said that after the mandatory transfer, CB and OceanBank will continue to operate as one-member limited liability banks with 100% charter capital owned by VCB and MB; and will be allowed to conduct 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.

According to information from Vietcombank, receiving the transfer of CB bank will help Vietcombank expand its business scale, customer base, and network; it can receive a merger, maintain CB as a subsidiary bank or sell/transfer CB to a new investor during and after the completion of the mandatory transfer plan.

Vietcombank said that CB is still an independent legal entity and does not consolidate financial statements into Vietcombank's consolidated financial statements.

Vietcombank exercises the rights of the owner to CB according to regulations, and affirms that it will not contribute capital to CB during the period when CB still has accumulated losses; Vietcombank participates in the management, operation and implementation of support measures in the Compulsory Transfer Plan approved by the competent state agency.

Vietcombank 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.

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Chairman of the Board of Directors of MB Bank, Mr. Luu Trung Thai, spoke at the handover ceremony. Photo: MB.

In a statement issued after the handover ceremony, MB Bank affirmed that 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 in the group. 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.

The Board of Directors of MB decided to appoint Mr. Le Xuan Vu, Member of the Executive Board of MB, as MB's representative, to take on the position of Permanent Deputy General Director of OceanBank. Mr. Vu has 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. With the task of being in charge of operations at OceanBank, Mr. Vu is believed to contribute to increasing the management and operational capacity of OceanBank in the coming time.

Vietcombank 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, accepting compulsory transfer is also an opportunity for VCB and MB to expand operations and implement new business models.