Title Page
ABSTRACT
Contents
INTRODUCTION 10
CHAPTER ONE: FUNDAMENTAL CONCEPTS 15
1.1. Merger and Acquisition in General 15
1.2. Bank M&A 17
1.2.1. Bank's Definition 17
1.2.2. Characteristics of Banks 19
1.2.3. Bank M&A 23
1.2.4. The legal issue of bank M&A 24
CHAPTER TWO: THE LEGAL FRAMEWORK AND PRACTICE OF BANK M&A IN THE UNITED STATES 26
2.1. Antitrust provisions over bank mergers in the United States 26
2.1.1. The Sherman Act 26
2.1.2. The Clayton Act 28
2.1.3. The Bank Merger Act 1960 29
2.1.4. Bank Holding Company Act 32
2.1.5. Riegle-Neal Interstate Banking and Branching Efficiency Act 33
2.1.6. Change in Bank Control Act 36
2.2. Standard and Condition of Bank M&A in the US 37
2.2.1. Concentration 37
2.2.2. Capital and Capital Safety 41
2.2.3. Restriction on Foreign Ownership 45
2.2.4. Depositor's Interest 47
2.2.5. Insolvent Bank 49
CHAPTER THREE: BANK MERGER UNDER VIETNAMESE LAW 54
3.1. Vietnamese Laws govern Bank M&A 54
3.1.1. Civil Code 2015 54
3.1.2. The Enterprise Law 55
3.1.3. Competition Law 57
3.1.4. The Law on Credit Institutions and the Law on State bank of Vietnam 60
3.1.5. Investment Law 61
3.2. Standards and conditions of bank merger in Vietnam 62
3.2.1. Concentration 62
3.2.2. Capital and Capital Safety 64
3.2.3. Share ownership ratio, for foreign investors to buy shares of Vietnamese credit institutions 67
3.2.4. Depositor's Interest 69
3.2.5. Compulsory Bank Merger of Insolvent Bank 72
CHAPTER FOUR: CURRENT ISSUES REGARD BANK MERGER IN VIETNAM AND RECOMMENDATIONS 75
4.1. Current issues regard bank merger in Vietnam 75
4.1.1. State Bank and VNCB Case 75
4.1.2. No legal basis for State Bank to acquire insolvent bank with the price of 0 VND 82
4.1.3. Deposit Insurance is not satisfied 84
4.1.4. Share ownership of foreign investors is low 86
4.2. Recommendations 88
4.2.1. Discontinuing Compulsory Acquisition of Insolvent Banks 88
4.2.2. Putting limitation on economic concentration of competition law. 90
4.2.3. Adjusting the safety ratios, crossing-ownership in a Bank M&A transaction 92
4.2.4. Lifting the cap of foreign ownership in Vietnamese banks 93
4.2.5. Raise the deposit insurance level to protect depositors in bank M&A 95
CHAPTER 5. CONCLUSION 99
REFERENCES 102