SBV outlines restructuring plans for troubled SCB

April 19, 2024 | 18:27
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During a press briefing on April 19, Dao Minh Tu, Geputy Governor of the State Bank of Vietnam (SBV), detailed the government’s strategy for aiding the beleaguered Saigon Commercial Bank (SCB).
SBV outlines restructuring plans for troubled SCB

Tu said, "The SBV is actively devising mechanisms to gradually stabilise and revive SCB’s operations, which is essential to ensure the bank’s continuity and safeguard our national financial system."

Discussing the wider ramifications of the Van Thinh Phat case and related misconduct at SCB, Tu emphasised the need for accountability.

"The infractions were committed by individuals who intentionally violated regulations. They must be held legally responsible. Our policies and regulatory frameworks are both comprehensive and clear," he said.

Tu highlighted the critical need for stability in the banking sector, especially during crises, saying "Central banks are tasked with implementing timely and targeted solutions to prevent a bank’s collapse from impacting the broader financial system."

Speaking on SCB's specific challenges since October 2022, Tu said, "Given its large asset size, it is imperative that we implement substantial measures. The SBV is obligated to intervene and stabilise the bank to maintain systemic stability and social order."

He reiterated the SBV's commitment to restructuring SCB, saying, "We are methodically developing a restructuring plan for SCB, and actively seeking mechanisms that will enable its stabilisation and return to normal operations."

Speaking on the SBV’s support for SCB, Tu said, "The loans provided, which include tools to manage monetary impact, are part of our broader efforts to stabilise the bank."

Tu also touched on SCB's future, explaining, "We are close to completing the valuations for the mandatory acquisition of GPBank, Ocean Bank, and Construction Bank, as part of SCB’s restructuring strategy. We are vigorously seeking the government's approval to proceed with these plans."

SCB, Van Thinh Phat execs convicted of embezzlement; Truong My Lan sentenced to death SCB, Van Thinh Phat execs convicted of embezzlement; Truong My Lan sentenced to death

Ho Chi Minh City People's Court has found former executives of Saigon Commercial Bank (SCB) and Van Thinh Phat Group guilty of embezzlement, and Truong My Lan was sentenced to death after being convicted of three charges, and was also ordered to return nearly $26.97 billion.

By Celine Luu

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