14:42 | 21/12/2016 Economy
The State Bank of Vietnam has approved in principle a plan to merge the Sai Gon-Hanoi Commercial Joint Stock Bank (SHB) and the Vinaconex-Viettel Finance JSC (VVF).
|Illustrative image (Source: VNA)|
SHB revealed that the central bank also ratified the bank’s plan to set up a new subsidiary, which will be called SHB Finance with charter capital of 1 trillion VND (44.64 million USD) and will operate in consumer credit.
Following the merger, SHB’s charter capital will increase to more than 10.5 trillion VND.
SHB said under the Circular 6812/NHNN-TTGSNH, the central bank asked SHB and VVF to complete their merger in line with SBV’s regulations and submit a report on the merger to the SBV governor for official approval.
The planned merger was approved earlier by SHB and VVF shareholders at their annual general shareholders meetings last year.
SHB Finance will initially provide consumer credit services for individual customers that have annual income from 150 million VND to 200 million VND, later easing the market share to other individual customers with lower income.
Once SHB Finance is established, SHB will also transfer all its lists of individual borrowers with annual income of less than 200 million VND to SHB Finance.
According to SBV’s statistics, Vietnam had 16 financial companies till the end of the last year.