Banks rush to change names, hoping for new prosperity

Many new bank names have appeared on the market over the last few years, though the State Bank has not licensed any new banks. This is because a series of banks have changed their names.

These include Toan Cau Joint Stock Bank (G-Bank), Petrolimex Bank (PG Bank) Saigon-Hanoi (SHB) and Mien Tay Bank (Western Bank). Previously , G-Bank was the Ninh Binh Rural Bank, and PG bank was the Dong Thap Muoi Rural Bank.

A Deputy General Director at one of these banks said that his bank had to change its name because of the changes in the ownership structure. New shareholders did not want their banks bear old names, because this would hinder the bank’s ability to do “big business”. Aside from banks changing their names because of changes in ownership, other banks have changed their names because of changes among the banks’ biggest shareholders. G-Bank recently changed its name to GP Bank after it changed its shareholders’ structure.

Former member of the board of directors of a rural bank that has undergone a name changed stated: “When a country girl goes to big cities, she cannot keep the rustic names of Mit (jack-fruit) or Oi (guava). She needs to change her name in order to have a beautiful urban name like Lan (orchids) or Huong (Aroma). The same situation occurs with rural banks which have shifted to become as urban banks”.

Similarly, Co Do (Red flag) rural bank changed its name into Mien Tay Bank and then Phuong Tay Bank.

A banker commented that, “The name Mien Tay Bank did not allow the bank to obtain clients from Hanoi, HCM City, or Hai Phong, so the bank changed its name again to Phuong Tay Bank “. Meanwhile, the English name of the bank remains unchanged – Western Bank.

Rural banks aren’t the only ones that want to change their names; existing urban banks want to change their names too. For example, the Bank for Non-state owned Enterprises has changed its name into Vietnam Prosperity Joint Stock Commercial Bank.

An executive at the Vietnam Prosperity Joint Stock Commercial Bank said that the bank had to change its name because of changes in the structure of big shareholders. The new shareholders want to start a “revolution” and the “revolution” begins with the renaming of the bank.

Nearly one year ago, an urban bank considered to be a medium bracket bank unexpectedly experienced high growth and decided to change its name and brand identification. A source from the bank revealed that all of the important changes at the bank originated froma big shareholder acquiring more shares and enough proportional equity to become the main decision-maker at the bank.

A former General Director of a rural bank that now operates as an urban bank stated: “After there are changes in owners of joint stock banks, changes in the name and brand identification could be seen as positive signs”

After changing owners and names, most of the banks have become more effective,” he noted.-VnExpess

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Aug 2 2010. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry