HANOI : Vietcombank and Military Commercial Joint Stock Bank (MBBank) will take over smaller lenders Construction Bank and Ocean Bank, respectively, Vietnam’s central bank said on Thursday.
The moves are part of the central bank’s restructuring program to stabilise the financial sector and tackle non-performing loans.
“The goal of the compulsory takeovers is for the banks to return to normal operations, handle their accumulated losses, … and ensure depositors’ rights,” Nguyen Duc Long, deputy head of the central bank’s inspection department, said at a briefing.
Last year, the State Bank of Vietnam submitted a plan to parliament to restructure four poorly-performing commercial banks, including via forced takeovers with stronger and more well-established counterparts.
