Global Petroleum Bank GPBank was forced to be transferred to VPBank

On January 17, the State Bank announced the decision to forcefully transfer Global Petroleum Bank Limited (GPBank) to Vietnam Prosperity Bank (VPBank) and Dong A Bank (DongA Bank) to Development Bank. Ho Chi Minh City Development (HDBank).

DongA Bank has been under special control since 2015. In the same year, GPBank was also acquired by the State Bank for 0 VND, 100% owned by the state. Over the past ten years, these two banks were supported by state-owned banks in management and self-restructuring, before being officially and compulsory transferred to HDBank and VPBank.

In mid-October 2024, two zero-dong banks from the same period, CBBank and OceanBank, were also forced to be transferred to the Bank for Foreign Trade of Vietnam (Vietcombank) and Military Bank (MB). Currently, Saigon Bank (SCB) is the remaining bank under special control that does not have a handling plan.

According to the provisions of the Law on Credit Institutions, compulsory transfer is one of the options to restructure specially controlled credit institutions. The transfer aims to gradually restore normal operations, overcome weaknesses, and gradually turn GPBank and DongABank into banks with a healthy financial situation, ensuring the ability to operate continuously.

DA VPBank representative said that after the transfer, GPBank will continue to operate as a one-member limited liability bank with 100% charter capital owned by VPBank. All legal rights of depositors, rights and obligations of customers at GPBank continue to be guaranteed in accordance with agreements and regulations. At the same time, GPBank is an independent legal entity and does not consolidate its financial statements into VPBank’s consolidated financial statements.

When “taking on this political task”, VPBank said it will have the opportunity to expand its business scale, customer base, network, maintain GPBank as a subsidiary bank or sell/transfer to new investors later. at the end of the mandatory transfer plan.

At the same time, VPBank will contribute capital to GPBank during the period of implementing the mandatory transfer plan, so that GPBank has more financial resources, business development, and improved operating results, the total capital contribution does not exceed 20 % of VPBank’s charter capital.

According to VPBank’s representative, the capital contribution will be carefully considered by the bank and consulted by the shareholders’ meeting, to both ensure the safety of the bank’s operating capital and ensure the interests of shareholders. In addition, the bank will transfer experience and knowledge to support the restructuring process of GPBank according to the mandatory transfer plan.

On HDBank’s side – the unit receiving the compulsory transfer of DongA Bank, Mr. Pham Quoc Thanh, General Director of the bank, said that he will focus the necessary resources to support DongA Bank in implementing the 3 phases of the approved compulsory transfer plan. .

At the same time, according to HDBank leaders, the bank will ensure that DongA Bank operates safely and stably, serving customers and partners in the best way. HDBank also said it would accompany DongABank employees and build a sustainable development foundation.