Vietnam central bank preparing restructuring plan for troubled lender SCB

[HANOI] Vietnam’s central bank is drafting a plan to restructure the troubled Saigon Joint Stock Commercial Bank (SCB), the lender at the centre of the country’s biggest financial fraud on record, local media reported.

The plan, which was developed by investors, is awaiting suggestions from relevant bodies before being submitted to the government and the Communist Party’s Politburo, the country’s top decision-making body, the finance ministry’s Dau Tu newspaper reported at the weekend.

The report gave no details on the plan or a timeframe for its submission. The State Bank of Vietnam placed SCB under its supervision to stem a run on the bank sparked by the October 2022 arrest of real estate tycoon Truong My Lan, who was sentenced to death over her role in the US$12 billion fraud case. SCB has since been using cash injections from the central bank to cover cash withdrawals, Reuters has reported.

The central bank and government have repeatedly sought help for SCB from the private sector, specifically calling on foreign investors, according to state media, despite restrictions such as a 30 per cent cap on combined foreign ownership of Vietnamese banks. Last month, Reuters exclusively reported that Vietnam developer, Sun Group, had proposed 15-year rescue for SCB.