The State Bank of Vietnam has licensed the Saigon Joint Stock Commercial Bank, which is formed by the merger of three local banks, to open on January 1.
The new lender, also known as SCB, has a registered capital of VND10.58 trillion (US$503 million). The license is valid for 99 years.
The license allows SCB to conduct various banking activities, including offering loans, receiving deposits and issuing bonds.
The bank is a combination of Ficombank, Vietnam Tin Nghia and Saigon Commercial Bank.
The three Ho Chi Minh City-based lenders faced liquidity problems and decided to merge to improve their liquidity and to cut costs.
News website VnExpress has reported that with total assets of VND153.6 trillion ($7.3 billion), the new bank will be one of the five largest lenders in Vietnam.