On October 17, 2024, the SBV officially transferred OceanBank (renamed MBV) and Construction Bank (CB) to MB Bank and Vietcombank, respectively.

This week, the SBV is expected to formally announce the transfer of the remaining two banks: Global Petroleum Commercial Bank (GPBank) and Dong A Commercial Bank (Dong A Bank).

Planned restructuring and strengthening weak banks

Previously, both VPBank and HDBank had sought shareholder approval to take over one of the weak banks as part of the SBV’s restructuring plan.

During a recent government meeting with local authorities, SBV Governor Nguyen Thi Hong confirmed that the government had issued a resolution approving the mandatory transfer of GPBank and Dong A Bank.

The SBV plans to hold a ceremony to officially announce the transfer within a few days.

This initiative aims to restructure weak banks by integrating them into stronger commercial banks, ensuring their gradual recovery and comprehensive reform.

Case studies: MBV and CB

The transfers of MBV and CB set a precedent for this restructuring strategy.

Both banks, categorized as "zero-dong banks," continue to operate as single-member limited liability companies under their new parent banks.

Following the transfer to MB Bank, OceanBank rebranded as MBV and adopted a younger, more modern identity as part of the MB Group ecosystem.

According to Nguyen Minh Hang, Director of MB Bank's Investment Division, MB Bank has implemented new technologies and streamlined MBV’s organizational structure since the transfer.

Plans for further growth are already in place, with MBV expected to see significant development by 2025.

Phạm Như Ánh, General Director of MB Bank, noted that MB has been transferring technology and resources to MBV, hoping for a swift recovery and sustainable growth.

MB plans to sell profitable loan portfolios to MBV, which will use the revenue to access zero-interest loans from the government and SBV, generating profits to reinvest in its operations.

Implications for future growth

The takeover of weak banks offers acquiring banks, such as Vietcombank, MB Bank, VPBank, and HDBank, opportunities for higher credit growth limits.

Nguyen Thi Thanh Nga, Chief Financial Officer of MB Bank, anticipates robust credit growth in 2025, targeting a 25% increase equivalent to approximately VND 200 trillion ($8.3 billion).

Half of this credit room will focus on retail banking, signaling a strategic shift toward expanding retail operations.

Future of other weak banks

In addition to CB, MBV, GPBank, and Dong A Bank, Saigon Commercial Bank (SCB) remains under SBV’s special control since October 2022.

The SBV is actively implementing measures to stabilize SCB’s operations, safeguard customer deposits, and address the bank’s weaknesses and violations within the framework of legal regulations.

A restructuring plan for SCB is currently under development and will soon be submitted to relevant authorities for approval.

Tuan Nguyen