A pact signed on October 1 has officially sealed a merger deal between Sacombank and Southern Bank.

As such, Sacombank will soon take over Southern Bank’s assets, staff, data and customer system as approved under Decision 1844/QD-NHNN issued on September 14.

The new bank will retain the Sacombank name with total assets of 290.8 trillion VND (13 billion USD) and total equity of 22.6 trillion VND (1 billion USD). It will have 567 offices in Viet Nam, Laos and Cambodia, employing 15,510 people.

During the signing ceremony (Source: VNA)

However, Tram Be, Vice Chairman of Sacombank's Board of Directors, will not be a part of the new bank’s board. The State Bank of Viet Nam (SBV) will take over the stakes in the Southern Bank, currently Sacombank, and the new Sacombank from Be and his relatives and appoint the central bank's officials to run the new bank after the merger.

Speaking at the signing ceremony, SBV Deputy Head Nguyen Phuoc Thanh underscored the merger is part of banking restructuring to form a healthier financial conglomerate that can gain a firm foothold in the highly competitive global market .

The new Sacombank will be the largest bank of the joint stock sector, declared Thanh.

(Source: VNA)