The State Bank of Vietnam (SBV) plans to deal with six or eight banks in 2015, including efficiently-operating ones, according to Governor Nguyen Van Binh.

The State-run banks will be merged or with joint-stock ones, while those with poor performance will be sold back by the SBV, he said.

The move aims to create banks with bigger operational scale and better performance, he explained.

In the first phase of the banking system restructuring plan from 2011 to 2015, the SBV has only focused on handling the worst-operating banks.

The second phase will concentrate on rearranging not only weak banks but also healthy ones to enable their stronger operations, Binh said.

Vietnam currently has nearly 40 banks, which will be reduced to roughly 20 through merger and acquisition (M&A) by 2017. This will happen based on the banking sector’s restructuring strategy approved by the Government.-VNA