Vietcombank to fully cut its cross ownership - News Summed Up

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Vietcombank to fully cut its cross ownership

Vietcombank to fully cut its cross ownershipIn a bid to comply with a central bank regulation on cross ownership, Vietcombank is planning to divest its entire stake in five units, including four banks and a finance company, Chairman Mr. Nghiem Xuan Thanh said. Cross ownership was rampant in Vietnam’s banking system five years ago, presenting opportunities for vested interests and manipulation. Many banks have delayed the withdrawal from other banks although the deadline was set for 2015, with Vietcombank itself having been required by the government to comply with the rules. The strong increase in Vietcombank’s pre-tax profit was attributed to healthy growth in financial services, core business activities, and other activities. It was able to keep its provision for credit losses stable at VND4.5 trillion ($198.2 million), nearly unchanged against the same period last year.

Source: VietNamNet News November 14, 2017 08:26 UTC