The empty promises of banks: plans to list still on paper

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The empty promises of banks: plans to list still on paper

12/9/2016 2:58:00 PM

 Many years have elapsed but the number of banks listing shares on the bourse remains unchanged. 
 

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Only nine banks have shares listed on the bourse so far, including state-owned banks (Vietcombank, VietinBank and BIDV), and joint stock banks (ACB, Eximbank, Sacombank, MBB, SHB and NCB). No new name has joined the list in the last few years. 

Meanwhile, the State Bank of Vietnam has repeatedly urged commercial banks to list shares to improve the transparency of the banking system. Most recently, the Governor of the State Bank (SBV) in early 2015 released Document No 657 requesting SBV local branches to urge local banks to fulfill the listing plans by the end of 2016.

In fact, shareholders also want their banks to list shares. Maritime Bank, Nam A, VIB and PVcomBank shareholders repeatedly reminded the bank's’ management board of the forgotten listing plans, complaining that the delays in listing make it difficult for them to transfer shares.

Answering shareholders’ question about the listing plan, Ngo Chi Dung, VP Bank chair said banks will have to list shares either on the HCMC/Hanoi bourses, or UpCom market; therefore VP Bank was following necessary procedures for listing. 

Dung then said that the bank was still waiting for guidelines from the State Securities Commission (SSC). However, no further information about the plan’s implementation has been released. 
 

Only nine banks have shares listed on the bourse so far, including state-owned banks (Vietcombank, VietinBank and BIDV), and joint stock banks (ACB, Eximbank, Sacombank, MBB, SHB and NCB). No new name has joined the list in the last few years.

Nam A Bank’s listing plan was approved by the bank’s 2015 shareholders’ meeting. However, there is no sign showing that the plan would be completed this year.

Maritime Bank also has failed to implement the listing plan. Its shareholders earlier this year once again asked to write down the listing as an important task for 2016. However, to date, the bank’s managers still have not shown any detailed plan about the listing.

Maritime Bank is now a large bank after admitting Mekong Bank with charter capital of VND11.75 trillion, so amount of shares to be listed would be 1,175 million shares.

PVcomBank’s shareholders has been asked about the listing many times, but the bank’s managers said it would depend on the State’s regulations.

The reason behind the banks’ delay in listing shares is the unfavorable condition of the market, a significant decrease in the prices of bank shares which were considered ‘king shares’. Some banks have had to implement other tasks, including the settlement of outstanding problems after mergers.

Only VIB has announced that it is ready to list shares on UpCom in 2017.
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