The ceremony to announce the mandatory transfer of two major banks. — VNA/VNS Photo Doãn Tuấn

In a move to restructure the credit institution system and tackle bad debts, the State Bank of Viẹt Nam (SBV) has announced the mandatory transfer of two major banks.

On Thursday, the State bank revealed that the Vietnam Construction Bank (CB) will be absorbed by the Commercial Bank for Foreign Trade of Vietnam (Vietcombank), while the OceanBank will merge with the Military Commercial Bank (MB).

This decision transforms both CB and OceanBank into single-member limited liability commercial banks, with 100 per cent of their charter capital now under the ownership of Vietcombank and the MB, respectively.

Speaking at the event, Deputy Prime Minister Hồ Đức Phớc highlighted the urgency of this restructuring, urging the SBV to take drastic measures to address the lingering issue of bad debts that have plagued the banking sector for years.

Phớc underlined the need for effective management tools for interest and exchange rates, promoting safe and efficient credit growth to meet the 2024 target of 15 per cent growth.

He also called for stabilising lending rates, enhancing supervision to remove challenges faced by businesses, and accelerating the adoption of digital payments. — VNS