Vietcombank and MBBank will take over Construction Bank and Ocean Bank respectively, as part of the State Bank of Vietnam’s effort to stabilize the financial sector and address non-performing loans, the central bank announced on Thursday.
These compulsory takeovers are aimed at helping the smaller banks return to normal operations, manage their accumulated losses, and ensure the protection of depositors' rights, according to Nguyen Duc Long, deputy head of the central bank’s inspection department.
The takeovers are part of a broader plan, submitted last year, to restructure four poorly-performing commercial banks by pairing them with stronger financial institutions. This restructuring aims to strengthen Vietnam’s financial sector and improve the performance of struggling banks.
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