On April 19, the State Bank (SBV) held a press conference to announce the results of its banking operations for the first quarter.
Regarding the Van Thinh Phat case and the amount of money that the SBV lent to support Saigon Commercial Joint Stock Bank (SCB), Deputy Governor Dao Minh Tu said that when SCB fell into a difficult situation, even a crisis, like many countries in the world, the function of the Central Bank is to have timely solutions to intervene and ensure that the commercial bank in difficulty does not collapse and to ensure that it does not affect the national financial system or the safety of the commercial banking system.
Therefore, the SBV must have timely action plans.
Deputy Governor Dao Minh Tu clarifies the loan to support SCB. Photo: Minh Truc
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When SCB experienced a liquidity crisis in October 2023, the SBV had a function and the law also规定s provisions requiring the Central Bank to implement measures to stabilize this bank. According to Mr. Tu, SCB is not the first bank to have an incident. In the past 10 years, there have been weak banks and some have been put under special control. For example, 8 – 9 years ago, 3 commercial banks were put under special control and forced to be processed.
“This is also the law of economic development. Even in countries around the world, it can happen, not just in Vietnam. We have policy solutions to ensure stability for the bank’s operations, as well as stability of the system and of social order and security,” the Deputy Governor emphasized.
According to Mr. Tu, SCB is one of the large-scale banks with large total assets, so the solutions to handle it also require large-scale support procedures. Up to now, SCB is still operating stably and the SBV will continue to build a roadmap to gradually restructure this bank.
“The SBV is also researching this issue very urgently and actively,” the Deputy Governor added.
A representative of the SBV said that among the support measures, there are loans from the Central Bank to weak banks, but they are all implemented in accordance with the provisions of the law. These implementation measures are very detailed,contributing to ensuring the immediate stability of the system.
According to Mr. Tu, lending or providing money to SCB, whether it is used a lot or a little, will have a regulatory tool. “When we see that the amount of money in the economy is abundant and excessive, the SBV also has measures to issue credit bills to withdraw money as in the recent past,” the SBV leader added.
Minh Truc
