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Capital for bank restructuring mostly come from laymen   2012-02-01 - TBKTVN

A big capital volume is flowing into the banking sector, where a drastic restructuring process is taking place. However, experts have noted that the capital mostly has come from laymen, or the investors who are not keen on the finance and banking.

 

On January 1, 2012, SCB--the bank which took shape after the merging of the four banks, officially became operational.



SCB is not the only bank which has been undergoing a restructuring process. The official information about who is behind the plan to increase capital and rename Gia Dinh Bank has not been released. However, the well informed circle has got the most important details about the plan.



Gia Dinh Bank has turned into Viet Capital Bank after it successfully raised the chartered capital from 2 trillion dong to 3 trillion dong. Now the bank can sigh with relief because it can satisfy the requirements set by the State Bank of Vietnam on the legal capital, and it has new shareholders.



Saigonbank, after a lot of exertion, has carried out a campaign to increase the chartered capital by issuing 500 billion dong worth of shares to the Phu Nhuan Housing and Construction Company.



Most recently, just several days before the Tet holiday, investors heard that DOJI, a gold, silver and gemstone group has injected money in Tien Phong Bank, now holding 20 percent of the stakes of the bank. The investment capital proves to be a “valuable gift” for the bank which is facing difficulties.



Securities investors have paid a special attention to the news that Eximbank makes investment in Sacombank. It now is a big shareholder of Sacombank with the ownership ratio of 9.73 percent.



Analysts have commented that it is the gloomy stock market which has created the long term investment deals and helped push up merger and acquisition deals. Despite the big difficulties in the national economy, the banking sector remains a very attractive business field which deserves investments.



Money is good, but not enough

SCB has completed the merger and acquisition process, while 5-8 other banks are on the threshold of merger and acquisition in accordance with the restructuring process initiated by the State Bank



In an official statement, DOJI said that it not only makes capital contribution, but it would join the restructuring of Tien Phong Bank. The group has committed to pump more money to help improve the liquidity and settle bad debts.



It is obvious that banks feel happy when they can find new shareholders who are strong in financial capability – the thing that they most need for now. However, analysts have commented that money is not enough for the banks’ restructuring.



Besides the cases of Eximbank and Sacombank, one can easily realize that most of the capital which has been pumped into the banks recently is the capital from “laymen”, i.e. the investors who do not have much experience in the banking sector. The investors are called the “noisy neighbors” who have also undergone a tough period in their development – gold, securities and real estate groups.



Banking is a special business field, where the players not only need to have much money, but also need to have much experience in governance.



Analysts have recalled a lot of stories about the wave of injecting money in the banking sector in 2006-2007, when a lot of investors had to pay a “heavy price” for their investment deals because of their lack of knowledge about the “sensitive business field.”



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