Vietnam s central bank said it will push for bank mergers and force weak instituti

ons into bankruptcy as it intensifies an overhaul of the country s banking system

to boost growth.
The State Bank of Vietnam will step up measures to drastically deal with weak bank
s that have no chance of recovery, according to a statement on its website yeste
rday. The central bank is putting its utmost efforts to quicken overhaul of banks
, it said.
The Southeast Asian nation is targeting 2015 gross domestic product growth of 6.
2 percent from 5.98 percent last year, as the economy shows signs of improvement
on rising exports and investment. The years-long effort to clean up the banking
system is a key component of the government s drive to rejuvenate expansion, with
lenders facing a year-end deadline to reduce bad debt to below 3 percent of tot
al loans.
They are looking at 2015 as a decisive year, Alan Pham, Ho Chi Minh City-based chi
ef economist at VinaCapital Group, the nation s biggest fund manager, said by phon
e. The central bank is taking a more assertive role. If the banks get healthier t
his year, maybe the 6.2 GDP growth is achievable.
Bank mergers
The benchmark VN Index fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading
. The dong was stable at 21,345 against the U.S. dollar, according to prices fro
m banks compiled by Bloomberg. The central bank expects six bank mergers to occu
r this year, it said in its statement. The nation s large state banks are in a pos
ition to merge with weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.
ex fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading. The dong was stabl
e at 21,345 against the U.S. dollar, according to prices from banks compiled by
Bloomberg. The central bank expects six bank mergers to occur this year, it said
in its statement. The nation s large state banks are in a position to merge with
weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.ex fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading. The dong wa
s stable at 21,345 against the U.S. dollar, according to prices from banks compi
led by Bloomberg. The central bank expects six bank mergers to occur this year,
it said in its statement. The nation s large state banks are in a position to merg
e with weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.ex fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading. The dong wa
s stable at 21,345 against the U.S. dollar, according to prices from banks compi
led by Bloomberg. The central bank expects six bank mergers to occur this year,

it said in its statement. The nation s large state banks are in a position to merg
e with weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.ex fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading. The dong wa
s stable at 21,345 against the U.S. dollar, according to prices from banks compi
led by Bloomberg. The central bank expects six bank mergers to occur this year,
it said in its statement. The nation s large state banks are in a position to merg
e with weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.ex fell 0.2 percent at 1:02 p.m. in Ho Chi Minh City trading. The dong wa
s stable at 21,345 against the U.S. dollar, according to prices from banks compi
led by Bloomberg. The central bank expects six bank mergers to occur this year,
it said in its statement. The nation s large state banks are in a position to merg
e with weaker institutions, Pham said.
The state-owned banks are the ones with the heft to do it, he said. At the same tim
e, if the central bank thinks a weak bank is not salvageable, it is willing to l
et it be declared bankrupt.
Vietnam s economic growth last year beat the government s 5.8 percent target. The Wo
rld Bank forecasts the country s GDP growth at 5.6 percent in 2015.
The country s bad-debt ratio was forecast to fall to as low as 3.7 percent at the
end of 2014 from 5.4 percent in September, according to Prime Minister Nguyen Ta
n Dung.