A customer does transactions at a branch of Viet Nam Construction Joint Stock Commercial Bank (VNCB). The bank needs VND40 trillion (US$1.9 billion) to restructure its operations, said Deputy Governor of the State Bank of Viet Nam Nguyen Phuoc Thanh. — Photo vnexpress.net

HA NOI (Biz Hub) — Viet Nam Construction Joint Stock Commercial Bank (VNCB) needs VND40 trillion (US$1.9 billion) to restructure its operations, said Deputy Governor of the State Bank of Viet Nam Nguyen Phuoc Thanh.

Speaking with local media at the ceremony to announce the change of VNCB's operating model into a one-member limited company whose equity will be acquired by the SBV on March 5, Thanh said the capital would come from various sources, including the VNCB's sale of bad debts for the Vietnam Asset Management Company and the SBV's refinancing loan.

Thanh noted that with the SBV's ownership, people will feel more secure when transferring their money to the bank. Meanwhile, several major banks have also promised to support VNCB by sending the bank their money. Thus, the VNCB will receive the capital it needs for its operations.

The VNCB was established by Trust Bank in May 2013. Trust Bank was operational for 23 years, with charter capital of VND3 trillion ($142.85 million).

In mid-2014, the SBV appointed new officials to the VNCB after some former top executives at the bank were arrested for allegedly violating state regulations.

The VNCB, which is set to be restructured, signed a comprehensive cooperation agreement with Vietcombank to facilitate growth and sustainability last August. Its current chairman is Nguyen Van Tuan, who reportedly resigned from his post as Vietcombank Deputy General Director and was appointed by the central bank on March 5.

According to the central bank, its takeover of the VNCB will terminate all statuses, including the rights and interests of existing shareholders in the construction bank. However, the legal rights and interests of depositors at the bank will be preserved. — VNS