The State Bank of Vietnam (SBV) has issued a decision to approve the merge between Sacombank and Southern Bank. The move is part of the SBV’s restructuring policy for the banking sector.
The merged bank will continue to operate under the Sacombank bank name, making it one of the five largest banks in Vietnam with total assets of around USD13 billion .
The merged bank will continue to operate under the Sacombank bank name
The bank will have an equity of VND22.64 trillion (USD1.01 billion), a charter capital of VND18.85 trillion (USD841.52 million) and a network of 567 transaction points in Vietnam, and in Laos and Cambodia.
Sacombank Deputy Chairman Tram Be will lose his place on the board of the merged bank with the SBV set to decide the management structure for the merged entity.Sacombank and Southern Bank earlier received approval for the merger from their shareholders.
Vietnam currently has nearly 40 banks, which will be reduced to roughly 20 through mergers and acquisitions by 2017. This will happen based on the banking industry's restructuring strategy approved by the government.
The pace of restructuring is likely to increase next year as a large number of large banks consider merger plans. Vietcombank, one of the five largest commercial joint stock banks in the country, approved a plan to merge with SaigonBank. The Ho Chi Minh City-based Mekong Housing Bank also revealed that it could merge with BIDV
