SCB announces branch closures amidst restructuring

SCB announced the termination and dissolution of several branches on July 1, ceasing operations at Bau Cat Transaction Office in Thong Nhat, Nha Rong Transaction Office in Ho Chi Minh City, and Co Giang Transaction Office in Cong Quynh.

Bau Cat and Nha Rong transaction offices ceased operations on June 30, while Co Giang Transaction Office will terminate its operations on July 7.

Last June, SCB also announced the termination and dissolution of three other branches, Hung Dung Transaction Office in Nghe An, Thanh Cong Transaction Office in Hai Ba Trung, and District 1 Transaction Office in Cong Quynh.

Hung Dung Transaction Office ceased operations on June 1, while Thanh Cong and District 1 transaction offices terminated operations on June 10.

SCB has reassured its customers that their rights and transactions will be fully guaranteed and fulfilled at SCB's other branches.

SCB is one of Vietnam's largest privately held banks and provides a wide range of financial products and services to its customers. As a subsidiary of Van Thinh Phat Group, SCB benefits from the group's diversified portfolio and extensive experience.

In addition to the recent termination and dissolution of several branches, the bank was instructed by the government to undergo a swift restructuring process in April. It emphasised the need for transparency and the prevention of asset loss during the restructuring, which is intended to develop a healthy banking system, limit unfair competition, and create conditions for lower interest rates.

This directive comes in the wake of an incident last October when depositors rushed to SCB branches to withdraw their funds. To address the potential contagion threat, the SBV placed SCB under special control.

SCB, established through the merger of three banks in January 2012, holds the distinction of being the largest private bank by assets.

Allegations previously emerged linking SCB to questionable practices in their bancassurance activities. It was claimed that certain SCB customers who held savings deposits were allegedly provided with misleading advice by bank staff when it came to settling their accounts.

These customers were allegedly encouraged to transfer their savings deposits into high-yield investment plans offered by SCB, which were presented as comparable to savings accounts but were, in reality, insurance contracts with Manulife Vietnam.

Insurers to face penalties for wrongdoing in bancassurance sales The Ministry of Finance (MoF) inspection reveals regulatory violations by Prudential, MB Ageas Life, Sun Life, and BIDV Metlife in their bancassurance sales practices, leading to impending penalties and increased scrutiny in the Vietnamese insurance market.

Manulife Vietnam repays over $34 million in light of accusations Manulife Vietnam has received 6,060 complaints, resolving 3,553 and refunding over VND800 billion ($34.79 million) regarding allegations against it and SCB of insurance contract deception.