Control of major shareholders in banks

Announcing and reducing shareholder ownership ratio will help diversify shareholder structure. Illustration photo: ST

Participation of many real estate businesses

Reports from banks show that strategic shareholders of banks have appeared with many real estate “giants” holding more than 1% of charter capital or 1 enterprise contributing capital to 3 banks. For example, Prudential Vietnam Life Insurance Company Limited is a major shareholder of 3 banks: VietinBank, MB and ACB with a total of about 193 million shares held worth nearly VND 5,000 billion.

At ABBank, among the 19 shareholders owning 1% or more of charter capital, Geleximco Group is the second largest institutional shareholder with more than 132 million shares, equivalent to 12.78% of charter capital. Not only that, Glexhomes Joint Stock Company - an enterprise founded by Geleximco Group also owns 4.43% of charter capital at ABBank. On the other hand, Mr. Vu Van Tien, Vice Chairman of the Board of Directors of ABBank, although not directly owning shares at ABBank, is holding more than 33% of shares at Geleximco. In addition, Mr. Vu Van Hau - younger brother of Mr. Vu Van Tien, and related persons own nearly 180 million shares, equivalent to 17.41% of ABBank's capital.

At Eximbank, according to published information and through 2 approvals to buy shares, GELEX Group is the largest institutional shareholder, owning 174.6 million shares, equivalent to 10% of charter capital.

At Vietnam Maritime Bank (MSB), among the 11 shareholders owning 1% or more of charter capital, there are 3 enterprises in the ROX Group ecosystem (formerly TNG Holdings) holding nearly 5.4% of charter capital, including: ROX Key Holdings Joint Stock Company, TNL Asset Investment and Leasing Joint Stock Company, ROX Cons Construction Investment Joint Stock Company. In addition, there are enterprises such as Bai Dai Resort Company Limited with 4.96%; Hanoi Green Technology City Company Limited with 4.97%; Hanoi - Dai Tu Industrial Park Infrastructure Construction and Trading Company with 4.98% of charter capital.

At HDBank (code HDB), Sovico Holdings - a member of Sovico Group (operating in the fields of finance - banking, aviation, real estate and industry) holds 417.7 million shares, equivalent to 14.27% of charter capital.

In addition to real estate, many foreign funds and businesses in other sectors also hold large stakes in banks.

For example, at Techcombank, among the 13 shareholders owning 1% or more of charter capital, there are 4 foreign funds including the Singapore Government Investment Fund owning more than 1%, Morgan Stanley & Co. International Plc with 1.45%, COG Investment I B.V and related parties with 7.9%, Vesta VN Investments B.V and related parties with 7.9% of charter capital. Along with that, Masan Group and related parties hold 15.2% of the bank's capital.

In particular, from the shareholder structure that banks have publicly disclosed, there are some bank shareholders who have held a capital ratio exceeding the regulations in the Law on Credit Institutions 2024.

For example, at VIB, there are 2 shareholders and related persons who own more than the ratio according to the new regulations, even Mr. Dang Khac Vy - Chairman of the Board of Directors of VIB and related persons own more than 20.2% of charter capital - exceeding both the old and new regulations. VIB also has 3 institutional shareholders and related persons owning more than 15% of charter capital.

At ABBank, two institutional shareholders, Malayan Banking Berhad (Maybank) and Geleximco Group and their related parties, each own more than 16% of the charter capital. At OCB, six shareholders and their related parties own more than 15% of the charter capital.

Limit cross-ownership and bank manipulation

According to experts, requiring public disclosure of information on shareholders and related persons of shareholders owning 1% or more of charter capital at banks helps the market have a more complete access to the ownership structure, from individual shareholders to institutional shareholders and foreign strategic shareholders, and is also a necessary measure to control the situation of "disguised" investment, limit cross-ownership, and even bank manipulation.

Commenting on this issue, financial and banking expert Dr. Nguyen Tri Hieu said that the announcement and reduction of shareholder ownership ratio will help diversify the shareholder structure, limit the domination and acquisition of banks, thereby helping the system of credit institutions become more public, transparent and safer.

The State Bank is currently drafting a Circular regulating commercial banks with shareholders, shareholders and related persons owning shares exceeding the ratio and implementing a roadmap to ensure compliance with the provisions of the Law on Credit Institutions 2024. According to the new regulations, the maximum ownership limit at a bank for individuals is kept at 5%, but an organization cannot own more than 10% of the charter capital of a credit institution, including indirect ownership, instead of 15% as before. Shareholders and related persons also cannot own more than 15% of capital instead of 20% as before...

According to experts, reducing the ownership ratio requires a flexible roadmap, but there must be strong enough sanctions for bank shareholders to comply. The good news is that increasing transparency in banking operations has helped businesses become more competitive, with prospects for long-term and more stable development. According to experts from VPBank Securities Company, the regulation on disclosing shareholder information from 1% of charter capital helps investors have a clearer view, thereby accurately assessing the potential and risks of banks.