HANOI (Reuters) – Vietnam’s Ho Chi Minh City Development Bank (HDBank) said on Friday the central bank has directed it to take over DongA Bank as part of a drive to restructure the banking system and tackle bad debt.
The takeover will enable HDBank to expand its operations, boost lending and develop new business models, HDBank said in a statement.
HDBank will receive support from the central bank to ensure the takeover is effective, it said in the statement.
“HDBank will focus its resources and restructuring experience to accompany and support DongA Bank in consolidating its operations and overcoming existing problems, aiming to build DongA Bank into a bank with healthy, safe and sustainable finances,” it said.
(Reporting by Khanh Vu; Editing by John Mair)
