The State Bank of Vietnam (SBV) announced the mandatory transfers of two weak private commercial banks, namely CB Bank and Ocean Bank, to State-run Vietcombank and military-run MB Bank.

Vietcombank acquired CB Bank, while MB took over Ocean Bank.

Addressing the transfer announcement,  that took place on October 17, SBV Governor Nguyen Thi Hong said the mandatory transfer of poor-performing banks is one of solutions to improve the local banking system and address bad debts to contribute to ensuring the macro-economy and national financial and monetary security.

The SBV affirmed that all legal interests and rights of depositors and customers of CBBank and OceanBank are protected "before, during, and after the transfer process" in line with regulations.

The restructuring of credit system has been carried out through the acquisition and merging of poor-performing commercial banks, according to Prime Ministerial Decisions No. 254/QD-TTg and No. 843/QD-TTg issued in 2012 and 2013, on restructuring the credit system in the 2011-2025 period, and  on a project dealing with bad debts of credit institution system, respectively.