OCB last week revealed that the bank has 20 shareholders holding over 1 per cent of its charter capital, which now has to be disclosed as per the new rules.

Revision forces banks to reveal more shareholders, illustration photo/ Source: freepik.com

Among these, three foreign shareholders stand out: Japan’s Aozora Bank with a 15 per cent stake, Portal Global holding 3 per cent, and Pyn Elite Fund with 2.4 per cent. The remaining 17 domestic individuals and companies collectively own over 60 per cent of the bank’s charter capital.

OCB chairman Trinh Van Tuan and related parties holds a combined 19.9 per cent stake. Institutional investors also play a crucial role, with nine enterprises collectively owning 31.6 per cent of OCB shares.

The revised Law on Credit Institutions has expanded the definition of “related parties” to include step-parents and in-law step-parents, stepchildren-in-law, and extended family members such as uncles, aunties, and cousins. Additionally, any legal entities or individuals with potential risks to the operations of the credit institution, as determined by internal regulations or State Bank of Vietnam inspections, are considered related parties.

Another significant change in the revised law is the reduction of ownership limits for institutional shareholders (including indirect ownership) from 15 to 10 per cent, and from 20 to 15 per cent for shareholders and related parties. From July 1, shareholders and related parties who exceed the new ownership limits are allowed to maintain their stakes but are not permitted to increase them further, except through stock dividends.

VPBank published a list of 13 individuals, each holding over 1 per cent of the bank’s charter capital, collectively possessing more than 40.8 per cent of total equity. Institutional shareholders include Japan’s megabank Sumitomo Mitsui with over 15 per cent, Diera Corp with 4.39 per cent, and related parties holding an additional 13.65 per cent.

Chairman Ngo Chi Dung holds over 328.5 million shares, equating to more than a 4.14 per cent stake. His related parties collectively own 2.34 billion shares, corresponding to almost 30 per cent of the charter capital. Thus, Dung and his related parties hold over 33.6 per cent of VPBank’s charter capital, a significant increase from the 13 per cent reported at the end of 2023.

Similarly, HDBank disclosed its list of shareholders holding over 1 per cent of its charter capital. The list includes two foreign funds and a company linked to billionaire Nguyen Thi Phuong Thao. The Finnish investment fund Pyn Elite Fund holds a 2.2 per cent stake in the bank, and has significant holdings in other Vietnamese banks such as SHB, Sacombank, MB, Vietcombank, and TPBank.

Baillie Gifford Pacific Fund, owning 2.19 per cent of HDBank, also invests heavily in parts of Asia, with a portfolio featuring companies such as Samsung Electronics, Tencent, and Luckin Coffee.

The latest shareholder list does not reveal the direct holdings of Thao, but rather through Sovico. The company is chaired and managed by Pham Khac Dung, who holds over 417.7 million HDB shares, equivalent to nearly 14.3 per cent of the bank. Dung is also the deputy CEO of Sovico Group, a multi-industry conglomerate founded by Thao.

Meanwhile, MSB has announced that one individual and 10 enterprises each hold over 1 per cent of its charter capital.

Tracking the ownership stakes of individuals and organisations in banks or their borrowing activities is straightforward. However, true controlling parties often remain undisclosed if they use proxies or establish shell companies to hold shares or secure loans.

Governor of the State Bank of Vietnam (SBV), Nguyen Thi Hong, acknowledges that no single regulation can fully address this problem.

“A comprehensive approach is needed, including provisions in the amended Law on Credit Institutions and other measures such as integrating national databases on population and business registration,” Hong said.

She also emphasised the importance of effective coordination among government regulatory bodies, inspection agencies, and audit entities.

“Collaboration between regulatory bodies, inspection agencies, and audit entities is essential to tackle this issue comprehensively,” Hong added.

In May, the Ministry of Public Security was instructed to collaborate with the SBV to swiftly address issues of cross-ownership and manipulation within banks. In a directive issued that month, the prime minister emphasised that achieving the goals of the 2021-2025 economic development plan necessitates the reduction of negative practices and the influence of vested interests.