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SHB revealed that the central bank also ratified the bank’s plan to set up a new subsidiary, which will be called SHB Finance with charter capital of VNĐ1 trillion (US$44.64 million) and will operate in consumer credit.
Following the merger, SHB’s charter capital will increase to more than VNĐ10.5 trillion.
SHB said under the Cicular 6812/NHNN-TTGSNH, the central bank asked SHB and VVF to complete their merger in line with SBV’s regulations and submit a report on the merger to the SBV governor for official approval.
The planned merger was approved earlier by SHB and VVF shareholders at their annual general shareholders meetings last year.
SHB Finance will initially provide consumer credit services for individual customers that have annual income from VNĐ150 million to VNĐ200 million, later easing the market share to other individual customers with lower income.
Once SHB Finance is established, SHB will also transfer all its lists of individual borrowers with annual income of less than VNĐ200 million to SHB Finance.
According to SBV’s statistics, Việt Nam had 16 financial companies till the end of the last year.