The paper is developed on the basis of the traditional legal analysis method combined with the comparative method to explain and clarify the advantages of handling weak commercial banks by bankruptcy proceedings compared to measures of consolidation, merger, acquisition or compulsory transfer. The research results show that the handling of weak commercial banks, that cannot be restored or compulsory transfer by bankruptcy proceedings, will completely solve the intrinsic weakness of the commercial banking system. In the legal framework on bankruptcy of credit institutions, including commercial banks, which is stipulated in the Law on Bankruptcy and the Law on Credit Institutions, prioritizing the treatment of weak commercial banks based on the method of consolidation, merger, acquisition or compulsory transfer is not the optimal solution, because weaknesses existing in the banking system are not completely handled, but only a transfer from one commercial bank to another. For the healthy development of banking activities under the market mechanism, the handling of weak commercial banks through bankruptcy proceedings should be applied in practice as a necessary factor in ensuring the stable and sustainable development of current banking operations.
Anol Bhattacherjee. (2012). Social Science Research: Principles, Methods, and Practices. (University of South Florida, ISBN 13: 9781475146127
Badriyah, Siti Malikhatun and Suharto, R. and Mahmudah, Siti and Turisno, Bambang Eko and Wafi, Muhammad Shafiyuddin. (2019). Conflict of Legal Nors Regarding Regulation of Creditors of Encumbrance Rights Holders in the Debtor's Bankruptcy in Indonesia. Print: ICIDS 2019, (Bandar Lampung, Indonesia, 10 September 2019). https://eudl.eu/doi/10.4108/eai.10-9-2019.2289383
Constitution of the Socialist Republic of Vietnam, 1992.
Dilyara F. Zakirova., Dmitry S. Panteleev., and Elvira F. Zakirova. (2018). Estimating bankruptcy probability of credit organizations. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 9 no. 4 (2018):307-315.
Doan, Thi Lien. (2022). “The Evaluation of Effectiveness of Commercial Banks Participating In M&A In Vietnam.” Eurasian Scientific Herald, 4: 35–46. Retrieved from: https://www.geniusjournals.org/index.php/esh/article/view/419
Julija Kiršienė; Gabrielė Misevičiūtė. (2017). Comparative analysis of liability cases for collapsecies of financial institutions. Montenegrin Journal of Economics, Vol. 13, No. 3: 85-99.
Garcia, GGH, Lastra, RM, and. Nietto, MJ. (2009). "Bankruptcy and reorganization procedures for cross-border banks in the EU: Towards an integrated approach to the reform of the EU safety net." Journal of Financial Regulation and Compliance, Vol. 17 no. 3: 240 276. https://doi.org/10.1108/13581980910972223
Gavril ă Simona Petrina. (2011). International and Community Issues on Bankruptcy Regulation of Credit Institutions. Ovidius University Annals, Economic Sciences Series, Vol. XI, Issue 2: 465-470.
Gabov, Andrey V, Shitkina, Irina S. (2020). Disputed issues of competence of the bankruptcy trustee in bankruptcy of credit organizations. Gosudarstvo i pravo 4:76-86. DOI: 10.31857/S013207690009237-2.
Hoang, Thi Thanh Hang; Phan, Dien Vy; Jay Bandaralage. (2016). Mergers, Acquisitions and Market Concentration in the Banking Sector: The Case of Vietnam. Asian Journal of Economics and Empirical Research, 3(1): 57.
Law No. 30 - L/CTN dated December 30, 1993 of the National Assembly on corporate bankruptcy.
Law No. 21/2004/QH11 dated June 15, 2004 of the National Assembly on bankruptcy.
Law No. 51/2014/QH13 dated June 19, 2014 of the National Assembly on bankruptcy.
Law No. 47/2010/QH12 dated June 16, 2010 of the 12th National Assembly on credit institutions.
Le, Thi Thu Thuy. (2014) “Completing the law on bankruptcy settlement of commercial banks and securities companies.” Journal of Legislative Studies, No. 2+3 (258+259): 79-89.
Le, Tu. (2017). The Efficiency Effects of Bank Mergers: An Analysis of Case Studies in Vietnam. Risk Governance & Control: Financial Markets & Institutions, Vol.7, No.1, (Winter 2017): 61-70. Available at http://dx.doi.org/10.2139/ssrn.2822944
Lopez-Iturriaga, Felix Javier and Lopez de Foronda, Oscar and Pastor-Sanz, Iván. (2010). Predicting Bankruptcy Using Neural Networks in the Current Financial Crisis: A Study of US Commercial Banks. (November 28, 2010). Available at: http://dx.doi.org/10.2139/ssrn.1716204
Marinč, M., Vlahu, R. (2011). Current Bank Bankruptcy Regimes and Recent Developments. In: The Economics of Bank Bankruptcy Law. First Online, dated 10 August, 2011 (Springer, Berlin, Heidelberg, 2011), 97-131. https://doi.org/10.1007/978-3-642-21807-1_6 .
Marinc, Matej and Vlahu, Razvan. (2011). The Economic Perspective of Bank Bankruptcy Law. Fed Cleveland Conference on Resolving Insolvent Large and Complex Financial Institutions, Available at: http://dx.doi.org/10.2139/ssrn.1822682
Nasiri, Danial & Ezzatollah Nasiri. (2021). Bankruptcy of Bank and Financial and Credit Institutions by Looking at bank bail. Journal of Legal Research. Vol. 20, no. 46: 139- 168.
Ngo, Huy Cuong. (2014). Protecting bankruptcy legal relations by criminal law. Journal of Legislative Studies, No. 2+3 (258+259): 25-38.
Nguyen, Van Van. (2002). Orientation to build the law on bankruptcy of credit institutions. Journal of Legal Science No. 8(15): 17-24.
Olabarrieta, U., Araujo, A., San-Jose, L. (2020). Ethics of Bankruptcy Creditor." Print: San-Jose, L., Retolaza, JL, van Liedekerke, L. (eds) Handbook on Ethics in Finance. International Handbooks in Business Ethics. (Springer, Cham, First online: October 22, 2020) https://doi.org/10.1007/978-3-030-00001-1_16-1
Pham, Duy Nghia. (2014). Methods of studying jurisprudence. Public Security Publishing House, Hanoi, Vietnam.
Prime Minister. (2012). Decision 254/QD-TTg dated March 1, 2012 approved “Project on restructuring the system of credit institutions for the period 2011-2015”.
Prime Minister. (2017). Decision 1058/QD-TTg dated July 19, 2017 approving the Project "Restructuring the system of credit institutions associated with bad debt settlement for the period 2016 - 2020".
Prime Minister. (2022). Decision 689/QD-TTg dated June 8, 2022 approving the project "Restructuring the system of credit institutions associated with bad debt settlement for the period 2021-2025".
Rares-Sebastian Puiu-Nan. (2013). The role of the Romanian National Bank in applying the bankruptcy procedure of the banking credit institutions. Challenges of the Knowledge Society: Private Law, No.046: 381-389.
Richard Levin. (2022). Compilation of Recent Developments in Bankruptcy Law. © 2021 Jenner & Block LLP - an Illinois Limited Liability Partnership including professional corporations. Available at: https://jenner.com/system/assets/assets/10814/original/Compilation%20of%20Recent%20Developments%20in%20Bankruptcy%20Law.pdf.
Stephen J. Lubben. (2011). Financial Institutions in Bankruptcy. Seattle University Law Review, Vol.34: 1259-1278.
Stijn Claessens, LeoraF. Klapper. (2002). Bankruptcy Around the World Explanations of its Relative Use. The World Bank Development Research Group Policy Research Working Paper, No.2865, Finance, 34 pages).
Tran, Thi Thanh Tu., Nguyen, Thi Yen. (2021). Restructuring Measurements Impact on Bank Risk After the Global Financial Crisis — Empirical Evidence from Vietnam. Review of Pacific Basin Financial markets and Policies, Vol. 24, no. 03: 2150019.
Vo, Xuan Vinh. (2018). M&As in the Process of Banking Consolidation – Preliminary Evidence from Vietnam. Asian Journal of Law and Economics, Vol. 9, no. 2: 20170032. https://doi.org/10.1515/ajle-2017-0032.
Vo, Xuan Vinh & Nguyen, Huu Huan. (2018). Bank restructuring and bank efficiency—The case of Vietnam. Cogent Economics & Finance, 6:1, 1520423, DOI: 10.1080/23322039.2018.1520423.
Vien, The Giang. (2016). The involvement of the State Bank in credit institutions merger today. Journal of Legislative Studies, No. 21(325): 45-50.
Vien, The Giang. (2005). Some issues on the application of the Bankruptcy Law 2004 on the credit institutions. Banking Review, No. 2: 55-58.
Vien, The Giang. (2013). Inadequacies in Vietnamese legal regulations on bankruptcy of credit institutions. Banking Review No. 7: 24-28.
Vien, The Giang. (2018). Independence of the State Bank of Vietnam in performing central bank function. Jurisprudence Journal, No.08: 16-27.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2022 Lex Humana (ISSN 2175-0947)