The State Bank coordinated to speed up the compulsory transfer process for the 3 compulsory purchase banks (OceanBank, GPBank, CBBank). As for Dong A Bank, due to its negative equity, according to regulations, it must be compulsory transferred to another bank.
That is the recommendation of the State Audit stated in the Report on the results of the audit of the Socio-Economic Recovery and Development Program recently sent to the National Assembly Standing Committee and National Assembly deputies.
Specifically, in the report on monetary policy in 2022 associated with the tasks and functions of the State Bank of Vietnam (SBV), the State Audit said that the liquidity situation of the banking system was still tense at many times.
Some credit institutions lack available capital, leading to violations of the required reserve ratio, or having to lend to support liquidity, or lend special loans with large amounts of money.
The State Audit also pointed out that the plan to handle weak credit institutions (OceanBank, GPBank, CBBank) is still slow, lasting for many years (from 2015 to present).
The extension of the processing schedule has resulted in an increase in the expected resources for support through special lending forms due to the continuous losses in the business operations of these banks.
At the time of audit (August 2023), the handling of the three compulsory purchase banks mentioned above was only at the stage of the Government approving the compulsory transfer policy, and was in the stage of determining the value of the enterprise proposed for compulsory transfer.
Some banks have just been approved by the Government for compulsory transfer, but their financial situation is difficult, specifically: high bad debt and outstanding assets, negative equity, accumulated losses continue to increase, and do not meet the regulations on safety in banking operations. Some banks have high potential risks, causing system insecurity.
The State Audit recommends that the State Bank coordinate with relevant agencies to urgently speed up the mandatory transfer process for the three compulsory purchase banks (OceanBank, GPBank, CBBank).
As for Dong A Commercial Joint Stock Bank (Dong A Bank), because the bank's equity is negative, according to regulations, the State Bank must compulsorily transfer Dong A Bank to another bank.
