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VIETNAM Vietnam’s weak banks under control: official

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VIETNAM Vietnam’s weak banks under control: official

Post  1alaskan on Mon May 14, 2012 8:47 pm

Vietnam’s weak banks under control: official

VietFinanceNews.com - The State Bank of Vietnam says weak commercial lenders in the country are under control as the restructuring of the banking system is well under way.

Some credit institutions are going through mergers and acquisitions voluntarily and, at the same time, are taking measures to improve their management, Governor Nguyen Van Binh was quoted as saying in a report on news website VnExpress Thursday. The report did not identify the weak banks.

The banking system is operating more effectively, he said, adding that all banks have been asked to submit their own restructuring plans.

Binh said banks will be forced to merge if necessary. The central bank will also introduce new rules that require more transparency and encourage lenders to list on the stock market.

He also said state-owned companies will have to divest from the banking sector.


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