Press Release
On state acquisition of stakes of the Vietnam Construction Joint Stock Bank (VNCB) and turning CNCB in to the One Member Limited Liability Vietnam Construction Bank under state ownership
(Hanoi, March 5, 2015)
Over the past time, the VNCB performances have exposured a lot of weaknesses, with the fact that the bank’s governance and management have seriously violated legal regulations. The VNCB has been placed under the special control of the SBV for the aim of enhancing risk management and lessening the bank asset loses.
Due to heavy financial loses while VNCB was unable to have feasible restructuring measures as required by the SBV, the SBV has made a mandatory acquisition of the stakes of the VNCB to decisively dispose all weaknesses and limitations of the bank in line with Law on Credit Institutions and Decision No. 48/2013/QD-TTg of the Prime Minister dated August 1, 2013 on the capital contribution, mandatory acquisition of the stakes of credit institution under special control.
This is a necessary intervention by the state in order to maintain the stability of the system of credit institutions, protect the legitimate rights and interests of citizens and enterprises, at the same time to maintain political security and social safety in line with the orientation of the Scheme of the structure of credit institutions under Decision No.254/QĐ-TTg of the Government dated March 1, 2012. Accordingly, the SBV has become the new owner of the bank (100% of charter capital) with the Joint stock Commercial Bank for Foreign Trade of Vietnam (VCB) participating in governance and management of the One Member Limited Liability Vietnam Construction Bank.
After the acquisition, the SBV will coordinate with relevant ministries to implement the Plan of restructuring of the One Member Limited Liability Vietnam Construction Bank as approved by the Government and take several measures for One member limited liability Vietnam Construction Bank to operate sefely and effectively in line with law.
With the leading role of the SBV in close coordination of the relevant ministries and agencies under the close instructions of the Government, it is strongly believed that the Plan of restructuring the CNCB will definitely meet the set objectives.
The State Bank of Vietnam
Translated by VMH