HANOI (Reuters) – Vietnam’s central bank is planning to restructure four poorly-performing commercial banks, including via forced takeovers, state media reported on Wednesday, as the country strives to strengthen its banking system.
The four banks are DongA Bank, Vietnam Construction Bank, Ocean Bank and Global Petro Bank, Vietnam News Agency reported, citing unidentified central bank officials.
The central bank, formally known as the State Bank of Vietnam, did not immediately respond to a Reuters request for comment.
There was no immediate comment from the banks on Wednesday, a public holiday.
Under the plan, to be submitted to the parliament later this month, three of the banks would be forced into takeover deals with stronger commercial banks, possibly including Vietnam’s largest lender Vietcombank, the report said.
The move is part of the central bank’s efforts to “consolidate the local system of credit institutions and tackle nonperforming loans during the 2021-2025 period,” the report added.
(Reporting by Khanh Vu; Editing by Mark Potter)
