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Vietnam to seize four banks to strengthen banking system


The State Bank of Vietnam (SBV) has revealed plans to seize four weak commercial banks in a bid to strengthen the country's banking system. The four poorly-performing banks are DongA Bank, Vietnam Construction Bank, Ocean Bank and Global Petro Bank. The SBV report said that three of the banks - Vietnam Construction Bank, Ocean Bank and Global Petro Bank - would be sold by the SBV to stronger commercial banks. The move is part of SBV's efforts to improve the local banking system and address bad debts accumulated for the 2021-2025 period. The SBV said it was also restructuring Saigon Joint Stock Commercial Bank, which has been placed under SBV’s “special control” since October 2021. The bad debt ratio of the banking system has increased to 2.91% of total outstanding loans as of the end of February, according to an SBV report.

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