Policies needed to encourage small bank m&a: Nguyen Duc Kien

The government should introduce new policies to encourage mergers and acquisitions (M&A) among small banks.

The government should introduce new policies to encourage mergers and acquisitions (M&A) among small banks, the local online newspaper Saigon Dau Tu Tai Chinh quoted Nguyen Duc Kien, deputy chairman of the Economic Committee of the National Assembly, as saying on Oct 25.

The central bank can also take administrative measures to “localize” some banks, restricting their operations within specific localities, Kien said, specifying that the SBV may purchase or authorize others to acquire shares of these banks.

There exists a legal framework for banks to actively seek for M&A deals, Kien added, citing recent merge of Vietnam Postal Savings Services Company (VPSC) and LienViet Bank.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Oct 26 2011. 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