Cross-ownership ratio decreases significantly (Photo:Vietnam+) Hanoi (VNA) - recent report by the State Bank submitted to the National Assembly updated the results of dealing with cross-ownership status and results of credit institution restructuring.
Reducing cross ownership
According to the report, in order to continue reducing and dealing with violations of share ownership and cross-ownership, the State Bank of Vietnam has carried out a number of measures, including policy solutions and legal framework completion, inspection, supervision and restructuring credit institutions.
In addition, the State Bank has also cooperated with relevant agencies such as the State Securities Commission of Vietnam, ministries, centrally-run municipal and provincial People's Committees to direct state-owned enterprises to accelerate the divesture of capital and equity in credit institutions under the Government's direction and its solutions and roadmaps.
As a result, credit institutions have basically handled and addressed some violations of share ownership and cross-ownership. Specifically, the number of pairs of credit institutions that directly cross-own each other as of December 2018 were handled (7 pairs in 2012); ownership of mutual shares between banks and enterprises decreased.
Oceanbank is sold to foreign organisation
To date, the State Bank of Vietnam has basically completed the approval or assigned Board of Directors to review, complete and approve the restructuring plan of almost all credit institutions.
The restructuring of credit institutions has achieved remarkable results in accordance with the objectives and roadmap set out in the plan, ensuring stability and safety for the system of credit institutions.
Transaction at OceanBank (Source: OceanBank) Representatives of the State Bank of Vietnam said the bank is actively implementing restructural steps, handling compulsory bank acquisitions and Dong A Bank (DongA Bank).
Based on the Law on Amendments and Supplements to some articles of the Law on Credit Institutions passed by the National Assembly and under the direction of the Prime Minister, the State Bank of Vietnam has submitted to the authorized bodies solutions and plans on handling, and restructuring banks.
After the approval of the policy, the State Bank of Vietnam has actively taken steps to restructure and handle banks including Oceanbank, Construction Bank, Global Petroleum Bank and DongA Bank, in accordance with law.
Accordingly, conducting an independent audit to assess the financial situation, determining the real value of charter capital and reserve funds as a basis for implementing subsequent steps suitable to each specific case.
The report stated “to date, based on the cooperation with the concerned ministries, agencies, the State Bank of Vietnam has completed and submitted to the Prime Minister the plan on transferring and restructuring Ocean Bank after being transferred to foreign investors. Restructuring plans of the Construction Bank, Global Petroleum Bank, DongA Bank are being urgently finalized for submission to the competent authorities for approval in accordance with the current law".
According to the report, by the end of March 2019, the overall system's charter capital reached 578.9 trillion Vietnamese dong, an increase of 0.45 percent compared to the end of 2018 and up 13 percent compared to the end of 2017.
Owner’s equity of the whole system reached 792.6 trillion Vietnamese dong, an increase of 4.2 percent compared to the end of 2018 and up 20.1 percent compared to the end of 2017.
The implementation of Basel II is focused to observe international rules on capital safety. To date, seven commercial banks have been recognized by the State Bank of Vietnam to meet Basel II standards, including Vietcombank, VIB, OCB, MB, VPBank, TPBank and ACB.
The State Bank of Vietnam also said commercial banks in which the State owns over 50 percent of its charter capital continue to play an important role in credit institutions./.
