How did the banking restructuring work out?

According to economists, profitability is not a prerequisite for gauging the health of a bank, especially in the context of system-wide overheated growth times during the last 10 years or so. Stable, secure internal development is what banks need, particularly those that have been forced to transfer to other banks or restructure themselves after finding loopholes in governance.

The restructuring of the NCB is showing positive signs.

Another bank that has also been quite successful in the process of restructuring its operations in 2024, TMCP Bank for Prosperity and Development (PGBank). The bank vigorously implemented restructuring activities to improve business efficiency, increase competitiveness and build a sustainable motivation mechanism for personnel. "We have accelerated the restructuring of credit portfolios, optimized capital utilization efficiency, strictly controlled credit quality, helped reduce intra-group bad debts. The bank also prioritized the processing and recovery of non-performing loans and external debt; At the same time, we strengthened our business with foreign currencies, making the most of market opportunities to increase profits, improve operational efficiency and expand banking services ecosystem".

Further information on the process of system restructuring, Mr. Luân said that PGBank has changed its management and governance mechanism, focused on improving competitiveness by streamlining the organization, optimizing processes, developing human resources through intensive training and a rational liquidation mechanism. digital technology into the operational process.

The results achieved reflect the effectiveness of the restructuring process: In 2024, total assets increased by 32%, capital mobilization increased by 21%, profit after risk reserves grew by 44. 1% compared to 2023, total recoveries of bad debts reached VND 1,861 billion, out of which revenue recording amounted to VND 363 billion. This is an important foundation for PGBank to continue breaking through in subsequent stages Mr. Luan has expressed it.

Expectations changed from banks transferring

In January 2025, the last home equity accounts of affiliated banks were transferred to wholly owned subsidiaries, as directed by the State Bank. HDBank and GPBank to VPBank. Previously, in December 2024, CB was transferred to Vietcombank and Oceanbank to MB. Prior to the transfer, four banks were placed under special State Bank control after years of significant accumulation of bad debts and accrued losses.

Four weak banks have been successfully transferred.

After the transfer, some banks changed names and others kept their old names but all aimed to change for the better. Evaluating the overall structure of post-transfer banks undergoing restructuring, Ms Phan Thi Van Anh, MSc - Director - Senior Analyst at VIS Rating said that large banks have sufficient resources to absorb and manage the operations of the bank being transferred.

Specifically, each major bank is graduating with the experience to take over key positions including Chairman of the Board and Chief Executive Officer at transferred banks. The expert of VIS Rating took the evaluation.

It is known that during the restructuring process after receiving transfers, some banks plan to inject new capital into transferred banks after accumulated losses decrease or are completely resolved. Specifically, VPBank has announced plans to contribute up to 16,000 billion dong to GPBank; MBBank has announced a plan to pump 5,000 billion dong to Oceanbank within 7 - 8 years of the restructuring plan; HDBank expects to pump 9,000 billion dong into DongABank after the bank reduces its accumulated loss.