CB on verge of mandatory transfer to Vietcombank

June 08, 2023 | 14:41
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Construction Bank (CB) is reaping rewards as it embarks on its ninth year of restructuring, poised to undergo a compulsory transition into becoming a subsidiary of Vietcombank.
CB on verge of mandatory transfer to Vietcombank

In a recent interview with the press, the bank's leadership shed further light on this strategic plan, disclosing their anticipation that within approximately six months, Vietcombank will emerge as the parent institution overseeing CB's operations.

In May, the State Bank of Vietnam (SBV) disclosed that it had formally submitted and duly obtained authorised approval for the mandatory transfer directive targeting four banks subject to special regulatory scrutiny: CB, Oceanbank, GPbank, and DongA Bank.

Drawing attention to the obligatory transfer of a credit institution this year, Nguyen Thanh Tung, deputy CEO of Vietcombank, expressed unwavering commitment to execute the required measures.

“It is worth noting that in 2022, Vietcombank successfully devised a comprehensive blueprint for seamless transfers, in strict adherence to the SBV prescribed timeline,” Tung said.

The precursor of CB was the Rural Rach Kien Bank, which was converted into an urban model in 2006 under the name Dai Tin (TrustBank).

In May 2013, the Thien Thanh Group and several shareholders participated in capital contribution and restructuring efforts, leading to the transformation of Trust Bank into Vietnam Construction Bank (VNCB).

At an extraordinary shareholders' meeting in 2015, VNCB failed to pass the plan to supplement charter capital to meet the minimum capital requirements as stipulated by law. Consequently, the SBV decided to compulsorily repurchase the entire capital of the bank.

In March 2015, the SBV announced the conversion of CB from a joint-stock bank to a single-member limited liability bank model with the state as the sole owner.

Vietcombank has been involved in the management of this bank, appointing direct officials to oversee its operations since then.

After nine years, the bank asserts that it has undergone comprehensive innovations in terms of management practices, technology systems, product services, and brand image.

2022 marked the first year since the restructuring process that the CB officially obtained SBV approval for its business plan and achieved all its targets.

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