Vietnam to deal with 9 weak banks this month

TN News

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The State Bank of Vietnam has said it will restructure nine weak lenders in the country by the end of June, calling for the participation of all investors in the process.

"For these nine banks, the priority is to let them restructure on their own. If they can't come up with a plan, the State Bank will step in," Governor Nguyen Van Binh told legislators at a meeting last week.

"So far banks have solved their own problems by calling for new investors and looking for partners for mergers," he said.

Binh did not reveal the names of the banks. He said the government has already approved a plan to restructure two of the nine banks, aiming to deal with at least two banks in every remaining weeks of June.

The central bank arranged for three weak lenders with liquidity problems to merge at the end of last year.

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The merger of troubled lender Habubank with SHB has also been approved by shareholders of the banks.

Binh said the central bank will allow all investors, including foreign ones, to engage in the restructuring process of the nine weak banks, but local investors will be given preference.

He also noted that the State Bank could purchase stakes in these banks and resell them later.

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