State Bank of Vietnam reviews progress on compulsory bank transfers and instructs banks to accelerate approved plans

The State Bank of Vietnam held a review conference on the implementation of compulsory transfer (CGBB) plans for banks nearly one year after the transfers, noting early positive results and directing further action to keep delivery aligned with approved plans. Across the transferred banks, organisational models and senior management teams have largely been put in place, names and branding have been changed to leverage sponsor-bank brands, and branch networks have been reviewed and reorganised, with requests submitted for approval to expand networks to optimise costs and customer reach. Work is also underway to upgrade and transition information technology systems to support business continuity and information security. Operational indicators have improved, with strong growth in total assets, deposits and lending, non-performing loans being gradually addressed, and some banks returning to profit or reducing losses versus the same period in 2024. The update also noted that the four banks under CGBB are broadly tracking the first-year plan for phase 1, while remaining facing practical difficulties and bottlenecks. Governor Nguyễn Thị Hồng and Deputy Governor Phạm Quang Dũng tasked receiving banks and transferred banks to urgently implement solutions to ensure delivery matches approved CGBB plans, and instructed relevant State Bank of Vietnam units to promptly review and propose measures to resolve issues raised by the banks and special control boards.