World Bank: additional commercial banks need to be merged
After drastic restructuring in the Vietnamese banking system, mergers and acquisitions (M&A) still need to be made by an additional 34 commercial banks, according to Sandeep Mahajan, World Bank (WB)’s Lead Economist for East Asia-Pacific.
Mr Sandeep Mahajan made the statement at a press conference to announce the regional Economic Update on April 11.
He affirmed that the M&A should be done in a strict and suitable process to create a sharp fall in number of credit institutions.
Although substantial progress has been made in the shake-up of financial organisations, it is hard to slash the number of commercial banks from 34 to 15-17 by the end of 2017, according to the WB’s evaluation.
Sandeep Mahajan said that Vietnam needs to lighten the burden on the private sector while mapping out solutions for medium-term fiscal consolidation.