On the afternoon of October 17, the Government Newspaper reported on the announcement ceremony of the decision to compulsorily transfer two banks: Transferring Vietnam Construction Commercial Joint Stock Bank (CBBank) to Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank, VCB) and Ocean Commercial Joint Stock Bank (OceanBank) to Military Commercial Joint Stock Bank (MB).
Attending the announcement ceremony were Deputy Prime Minister Ho Duc Phoc, leaders of ministries, branches, central agencies and People's Committees of Hanoi, Ho Chi Minh City and Long An province.
After the mandatory transfer, CBBank and OceanBank will be single-member limited liability commercial banks with 100% charter capital owned by Vietcombank and MB.
Under the management of Vietcombank, MB in its role as owner of CB, OceanBank, all legal rights of depositors, rights and obligations of customers at CBBank, OceanBank continue to be guaranteed in accordance with the agreement and regulations of law.
Vietcombank and MB are leading commercial banks with sufficient capacity, experience and solid foundation to successfully implement mandatory transfer plans.
At the same time, with the mechanism applied according to the provisions of law, the mandatory transfer is also an opportunity for VCB and MB to expand operations and deploy new business models.
Before joining Vietcombank, CBBank's leaders shared many times that the bank was completing procedures to be ready to receive the mandatory transfer to Vietcombank.
MB leaders also said they are supporting OceanBank and announced that they have completed the procedures to receive the bank transfer.
Compulsory transfer of weak credit institutions is one of the solutions to restructure the system of credit institutions associated with bad debt handling, in order 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 compulsory transfer plans and submit them to competent authorities for approval in accordance with legal regulations.
