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Breakthrough in restructuring commercial banks (10/6)
10/06/2013 - 15 Lượt xem
The
safety of credit institutions had been significantly improved. Weak
credit institutions standing before the risks of collapse had been
tightly controlled and had been handled by appropriate solutions,
contributing to stabilize the currency market.
Merging
and restructuring nine banks were implemented over a year ago. Of
which, the merger of the Saigon Commercial Bank (SCB), Ficombank and
TinNghiaBank brought positive results. Three banks did not ensure
credit-worthiness before the merger due to the using of short-term
capital resources for long-term loans (mainly focusing on the real
estate market). When the real estate market changed, short-term capital
resources did not enough to mobilize. Therefore, three banks’ boards of
directors voluntarily merged together into a joint-stock commercial bank
(SCB) under the sponsor of the Bank for Investment and Development of
Vietnam (BIDV) and the support of the State Bank of Vietnam (SBV)
through refinancing loans. As of December 2012, BIDV supported over
VND2.4 trillion in capital for three banks. Together with this support,
the merged bank has a charter capital of VND10 trillion, total assets of
VND150 trillion and more than 200 branches and transaction offices.
According
to SBV’s assessment, this merger had achieved positive progresses. The
new bank’s liquidity has been improved significantly through measures to
increase charter capital. Mobilizing capital from the new bank's
economy increased by 35.9 percent in 2012 and increased by seven percent
in the first two months of 2013. Therefore, the new bank has ensured
the safety of state property. Under the close supervision of SBV, the
new bank is currently promoting the implementation of measures to
overall restructuring.
According
to a report in terms of production and business activities, the new
bank achieved profits of VND1 trillion in the last quarter of 2012,
contributing to declining losses to VND95 billion. By the end of 2012,
deposits in the new bank were double compared to the same period last
year, reaching VND77.6 trillion. The amount of money for loans reached
VND56.813 trillion.
In
addition to three above banks, four other banks, including NaviBank,
TrustBank, TienphongBank and GP Bank have also been restructured.
According to an initial report, the restructuring had achieved positive
signs.
In
addition to positive results, the restructuring of the banks was slow
compared to the plan. According to Vietnam Institute of Economics PhD To
Anh Duong, basic measures to deal with bad debts had not yet been found
and the management of credit institutions was weak. Therefore, risks
can happen at any time.
To
effectively restructure banks and achieve objectives, in addition to
the completion of the legal framework for banking activities, PhD To Anh
Duong suggested some solutions, such as focusing on dealing with bad
debts, overcoming difficulties for the real estate market, resolving
inventories for businesses and promoting the restructuring of
state-owned enterprises. In addition, promoting mergers and acquisitions
(M&A), enhancing capacity in terms of the financial autonomy for
banks, strengthening the management of risks based on international
standards, improving effectiveness of inspection, resolving problems in
terms of cross-ownership of banks and ensuring the transparency of
information were also underlined./.
Source: VEN.
Source: VEN.
