Two ailing Vietnamese banks transferred to giants Vietcombank, MBBank

The State Bank of Vietnam (SBV) on Thursday announced the mandatory transfers of private lenders CBBank and OceanBank to state-controlled Vietcombank and military-run MBBank respectively for “zero Vietnamese dong".

Vietcombank acquired CBBank, while MB took over OceanBank, Nguyen Duc Long, deputy head of the SBV’s inspection agency, told a press meet hosted by the central bank on Thursday.

Two other “zero VND” transfers of GPBank and DongA Bank are expected to occur in the near future, he added.

In terms of depositor interests, Long assured that they will be protected "before, during, and after the transfer process."

The primary goal of the transfers is to help the ailing banks to normalize their operations, address accumulated losses, and ensure compliance with operational safety regulations.

OceanBank, originally Hai Hung Rural Commercial Joint Stock Bank, transitioned to an urban model in 2007 after being acquired by businessman Ha Van Tham. Following his arrest, the central bank acquired OceanBank for zero VND, with VietinBank stepping in to provide management support.

CBBank was formerly Rach Kien Rural Commercial Joint Stock Bank, became an urban bank in 2006, and was rebranded as TrustBank.

After restructuring in 2013, this lender was renamed Vietnam Construction Bank (VNCB). In 2015, VNCB was acquired by the SBV for zero VND, with Vietcombank providing management assistance and later renaming it CBBank.