The State Bank of Vietnam has already finished the roadmap to restructure the banking system, the local online newspaper DVT.vn quoted the SBV’s governor, as saying on November 24.
Specifically, the roadmap to restructure the banking sector consists of four phases as follows.
(1) From now to end-Q1/2012: classify commercial banks into one of the following three groups.
Group 1 includes large-scale banks with strong financial capacity. These lenders will continue to develop into leading banks in the local market. This group is expected to have 15 banks which account for 80 percent of market share of the whole system and 1-2 banks operating on regional scale.
Group 2 includes small-scale banks with strong financial capacity. The central bank will impose regulations to control their sizes and to ensure their sound operation within specified segments.
Group 3 consists of banks who encounter financial difficulties. The central bank will restructure these banks through adjusting their ownership structure or merging them to other credit institutions.
(2) From Q2/2012 to end-2013: restructure banks in group 3 and aim to ensure the liquidity for all banks.
(3) During 2013-2015: strengthen 3 groups of banks and seek for creating leading banks.
(4) By 2020: continue to restructure banks and target to have 4 institutions operating on international scale, of which 1-2 banks are classified as big banks in the South-East Asian region.
The governor reiterated that restructuring the banking system must ensure the rights of depositors and safety of the whole sector.