Two weak banks are about to be forced to transfer.

Two weak banks are about to be forced to transfer for restructuring.

At the 2022 annual general meeting of shareholders of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) held on April 29, Mr. Pham Quang Dung - Chairman of this bank - said that he plans to accept the compulsory transfer of a weak bank under the direction of the Government, the State Bank and legal regulations.

For Vietcombank, this mandatory transfer will help the bank expand its business scale, customer base, network, etc. and can accept mergers, or continue to maintain the credit institution as a subsidiary bank or sell/transfer the credit institution to a new investor.

Responding to shareholders' opinions on the identity as well as total assets, accumulated losses, bad debts, etc. of the weak bank that Vietcombank will receive a compulsory transfer, according to Mr. Dung, Vietcombank is currently still implementing the necessary procedures with state management agencies.

"Up to now, it is not possible to answer which specific credit institution Vietcombank will receive the compulsory transfer of. This weak credit institution is under the special control of the State Bank.

It is expected that Vietcombank will request to receive a mandatory transfer of one of these credit institutions under special control" - Mr. Dung informed.

Regarding the time to complete the restructuring of weak banks, according to Vietcombank's leaders, it depends on the specific situation of total assets and finances of the bank that Vietcombank receives compulsory transfer. On the other hand, the scale and level of support that Vietcombank receives from state management agencies. At the same time, the market situation will develop in about 5-6 years.

These are three important factors that affect the processing time of this weak credit institution. As for Vietcombank, the maximum processing time is 8-10 years for this weak credit institution to become healthy and operate normally.

Also at the 2022 annual general meeting of shareholders of the Military Commercial Joint Stock Bank (MBBank) taking place this week, Mr. Luu Trung Thai - General Director of MBBank - said that he would accept the compulsory transfer of a weak joint stock commercial bank.

The identity of the weak bank that MBBank received the transfer cannot be disclosed yet because it is listed as a state secret but has assets less than 10% of MBBank's total assets and accumulated losses not exceeding VND 20,000 billion.

"MBBank will not have to spend any capital to buy this weak bank, but will be forced to transfer it from the State Bank. To save the weak bank from collapsing, they must transfer it to the State at a price of 0 VND and it will be state-owned," Mr. Thai emphasized.

Regarding the restructuring of weak banks, the transferred bank is required to borrow preferential credit with 0% interest rate during the restructuring period. It is expected that in 7-9 years, MBBank will resolve the accumulated losses of this weak bank.

The proposed restructuring plan is that the acquired bank may merge with MBBank. Or MBBank may sell this bank after a few years of restructuring because this is considered an investment.

According to Tuoi Tre