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Market keeps quiet with news about bank merge
Contrary to all predictions, the information about the merging of three banks: TinNghia, Ficombank and SCB has not led to a chaos on the market. Depositors keep calm because they have confidence on the State Bank.
No wave of withdrawing money
Investors and depositors in Hanoi receive the news about the merging of the three banks in a calm manner. The prediction that the merge would lead to a new wave of people rushing to the banks to withdraw deposits has not come true.
The branch of Ficombank at No 1F on Thai Ha Street still keeps opening every day and it has not witnessed any big changes in the number of transactions. A depositor, who was seen on December 7 at the branch, told reporters that he did not intend to withdraw money at this moment, affirming that the merging would be implemented under the supervision of the State Bank, therefore, there is nothing to worry about.
The bank branches of TinNghia on Tay Son and Nguyen Trai streets have also been operating as usual. An officer of the branch on Nguyen Trai Street said that there will be no changes to client’s benefits during the merging process and when the merging is completed.
Especially, a new branch of TinNghia on Thai Ha Street has been opened as a part of the bank’s plan to expand its operation scale. A bank officer said that he has been told to continue working and fulfill all the tasks set up earlier this year.
Meanwhile, the information about the merging of three banks has been received by securities investors in different ways. On the morning of December 6, the prices of bank shares both went up and down. ACB of Asia Commercial Bank and CTG of Vietinbank saw the prices increasing. Meanwhile, EIB of Eximbank kept unchanged in prices, and VCB of Vietcombank and MBB of Military Bank decreased sharply in prices.
The prices of small banks’ shares also decreased with NVB of Navibank down by 2.4 percent, SHB of Saigon-Hanoi down by 1.5 percent.
In fact, the information about the merging of three banks has not surprised any one. Prior to that, the State Bank announced a process of restructuring bank, while some days ago, the information about the three banks leaked out.
In general, securities investors believe that merging bank is a reasonable move that aims to make the banking system more powerful and healthier. However, they are worried about the implementation of the policy. A question has been raised that what are the next banks which will follow the three banks to merge into each other. In minds of securities investors, the three banks just account for five percent of the total weak banks.
Especially, securities investors have posed a question if there is any relation between the decision of Vietinbank to hurriedly increase its capital at the end of the year, and the BIDV”s IPO, slated for December, with the merging of the banks. Should the moves by Vietinbank and BIDV seen as the preparation step for the merging of small banks?
Meanwhile, some securities investors have expressed their worries that a big sum of money would be withdrawn from the stock market, when banks need money to implement the restructuring.
Making the commitments about stabilization turn realistic
The move by the State Bank to announce the merging of three banks is considered a reasonable move in the process of restructuring banks. Analysts say they now can imagine the main features of the bank restructuring process.
The process will be carried out under the intervention and guarantee of the State Bank of Vietnam which uses its power – big state owned banks. And the process will go very quickly.
The resolution of the latest government meeting also said that the State Bank of Vietnam will compile the plan to restructure credit institutions to submit to the Communist Party’s Politburo prior to December 20, 2011.
Ha Dung
vietnamnet
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