Vietnam central bank announces 2 more bank takeovers
Vietnam central bank announces 2 more bank takeovers
The State Bank of Vietnam (SBV) has required lenders VPBank and HDBank to take over the underperforming GPBank and DongA Bank, respectively.
The State Bank of Vietnam has announced two more bank takeovers. Photo: Tuoi Tre Contributor |
The SBV held a ceremony on Friday to announce the mandatory transfers of Global Petro Sole Member Limited Commercial Bank (GPBank) and DongA Commercial Joint Stock Bank (DongA Bank) to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), respectively.
After the transfers, GPBank and DongA Bank will become single-member limited liability commercial banks, fully owned by VPBank and HDBank.
The legal rights of customers at GPBank and DongA Bank will be guaranteed in line with agreements and the law, said an SBV representative.
VPBank and HDBank have sufficient capacity, experience, and a solid foundation to ensure the success of the mandatory takeovers of the two underperforming banks, according to the SBV.
VPBank evaluated that the takeover presents an opportunity for it and HDBank to expand operations and launch new, modern business models.
"The compulsory transfer of weak credit institutions is one of the solutions to contribute to ensuring macroeconomic stability, national financial and monetary security, political stability, and social order and safety," the central bank said.
The transfers will also help poorly-performing banks overcome difficulties, ensure safety, and comply with regulations.
"Before, during, and after the transfer process, the deposits of depositors are fully guaranteed," said Nguyen Duc Long, deputy chief inspector of the SBV’s Banking Supervision Agency.
To date, three banks that the SBV had acquired for zero dong -- GPBank, CBBank, and Oceanbank -- and the under-special-control DongA Bank have been transferred to four financially sound banks.
In mid-October last year, the SBV announced the compulsory transfer of Construction Bank (CBBank) to Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Ocean Commercial One Member Limited Liability Bank (OceanBank) to Military Commercial Joint Stock Bank (MBBank).
