The State Bank of Vietnam (SBV) has identified a further eight credit institutions to undergo restructuring, calling for immediate plans to improve bottom lines, revealed SBV Governor Nguyen Van Binh.
In a report to the National Assembly, Binh said that the eight includes two banks and six non-bank credit institutions.
These institutions would have to submit restructuring plans for approval in order to ensure stringent management in accordance with a restructuring plan laid out for the 2011-15 period.
Under the plan approved by the Prime Minister, the central bank named nine credit institutions in the past two years that needed to be restructured; with controls handed down to improve the management of finances.
To date, eight out of them have completed the first phase of the approved restructuring plan on a voluntary basis.
The remaining bank will consult with SBV before seeking guidance from the Prime Minister on a voluntary restructuring, potentially with the involvement of foreign credit institutions.
SBV has so far received restructuring plans for 24 out of 25 joint stock commercial banks and approved the plans of 11 out of 25 banks.
It is also considering the restructuring plans for four banks and waiting on adjustments for nine banks.
For State-owned banks, SBV has directed banks that have completed their equitisation to complete appropriate restructuring plans to 2015, to submit to the Prime Minister for approval.
The performance of credit institutions has improved markedly with total assets rising by 5.53 percent by the end of September to 5,376 trillion VND (244.36 billion USD), according to SBV's new data.
Among the total, assets of State-owned commercial banks increased 7.04 percent to 2,356 trillion VND (107.09 billion USD) and the rising rate of joint stock commercial banks was 2.88 per cent, equivalent to 2,221 trillion VND (100.95 billion USD).
Compared with late August, asset levels surged by more than 83 trillion VND (3.77 billion USD), of which State-owned commercial banks and joint stock commercial banks made up 35.3 trillion VND (1.6 billion USD) and 42.78 trillion VND (1.94 billion USD), respectively.
Meanwhile, reports on the third quarter showed the banking system's total equity holdings also grew by 6.87 percent, compared with the end of last year, to 455.236 trillion VND (20.69 billion USD).-VNA
