According to the latest updated report from the State Bank of Vietnam (SBV), by June 30, 2019, Vietnam has basically removed the cross-ownership matrix in the commercial banking system.
Specifically, through the supervision of the State Bank Inspection Agency, by June 30, 2019, the number of pairs of directly cross-owned credit institutions has basically been solved. This situation was in 2012the time of the outstanding cross-handling request was set to seven pairs.
Regarding the direct ownership of shares between banks and businesses, according to the above report, by June 2019, only one joint-stock commercial bank and one pair of mutual ownership were remained. Meanwhile, this situation in June 2012 amounted to 56 pairs.
The remaining case is Asia Commercial Joint Stock Bank (ACB)Hoa PhatAsia Real Estate Joint Stock Company. ACB’s ownership rate in Hoa PhatAsia Real Estate Joint Stock Company is 2.86 percent and vice versa is 0.046 percent.
In order to achieve the above results, the actual process of handling and divesting took quite a lot of time, some cases missed appointments or had specific characteristics.
Relevant regulations have been set SBV in Circular 36, effective from 2/2015 with one-year term. But a few years later, some members implemented.
As at Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the holding rate is over five percent at Military Commercial Joint Stock Bank (MBMBBank), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), and then at Orient Commercial Joint Stock Bank (OCB), it must be gradually divested to finish; or Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) also gradually withdraws at Saigon Bank for Industry and Trade (Saigonbank).
On the other hand, the fact that a commercial bank owns a share of another commercial bank, with the rate of less than five percent, is now considered as simple and normal investments.
Along with the basic results of abolishing the cross-ownership status, another noticeable result is that SBV has taken another step in the regulation on blocking credit sources for lending to buy bank shares; and stipulating senior positions in management and administration of commercial banks must not concurrently work in other businesses.
