Two worst performing banks transferred to Vietcombank and Military Bank

Society – Economy - Ngày đăng : 08:52, 18/10/2024

The State Bank of Vietnam on October 17 announced a decision on a mandatory transfer of two of the worst performing bank, Ocean Bank and Construction Bank, to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Military Commercial Joint Stock Bank (MB).
two worst performing banks transferred to vietcombank and military bank picture 1
Deputy Prime Minister Ho Duc Phoc and State Bank leaders attend the ceremony to announce a decision on the mandatory transfer of the two worst performing institutions - Ocean Bank and CB Bank

Ocean Bank and Construction Bank are two of the four credit institutions, alongside GB Bank and DongA Bank, valued at zero dong due to their poor performance.

After the mandatory transfer, CB Bank and OceanBank will be  one member limited liability banks wholly owned by Vietcombank and MB.

All legal rights of depositors and the rights and obligations of clients at the two banks will continue to be guaranteed according to legal regulations.

The State Bank affirmed that Vietcombank and MB are leading banks with the capacity, experience, and solid foundation necessary to successfully implement the mandatory transfer plan.

The transfer also presents an opportunity for Vietcombank and MB to expand their operations and implement new business models.

The mandatory transfer of weak credit institutions is one of the central bank’s solutions for restructuring the credit system, aimed at addressing bad debts and contributing to macroeconomic stability, and national financial security.

VOV