The State Bank of Vietnam (SBV) issued Decision No. 1844/QD-NHNN on September 14 to officially approve the merger between the Southern Bank and Sacombank.
A majority of both banks’ shareholders gave the green light to the merger plan earlier in extraordinary general meetings.
The merged bank, which will maintain its name as Sacombank, will become one of the five largest banks in Vietnam with total assets worth VND290.86 trillion (US$12.9 billion), owner’s equity of VND22.64 trillion (US$1 billion) and charter capital of VND18.85 trillion (US$838 million).
In addition, it will have a network of 567 transaction points across Vietnam and in Laos and Cambodia where about 15,500 of its employees are located.
Sacombank’s Board of Directors affirmed that all legal rights and interests of depositors are guaranteed after the merger.
The deal is part of efforts by the Government and the SBV to push banking reforms and equip the market with stronger, safer and more professional financial entities.