VPBank takes ownership of GPBank
VPBank takes ownership of GPBank
The State Bank of Vietnam (SBV) announced the transfer of the stated-owned Global Petro Sole Member Limited Commercial Bank (GPBank) to the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) on January 17.
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Mandatory transfer is one among many measures to restructure credit institutions under special control, as stipulated in the Law on Credit Institutions.
The transfer is being carried out in accordance with the current applicable laws and approvals from the competent authorities, with the aim of gradually improving GPBank’s normal operations, addressing its weaknesses, and transforming the bank into a healthy and continuously operational entity. For VPBank, this presents an opportunity to increase its scope, customer base, and network. It may either retain GPBank as a subsidiary or sell it on to a new investor after the mandatory transfer is completed.
Once that is complete, GPBank shall remain to operate as a sole member limited commercial bank, with its charter capital fully owned by VPBank, and conduct its commercial banking activities according to applicable regulations. All legitimate rights of depositors, and the rights and obligations of customers at GPBank, shall be guaranteed in accordance with agreements and legal provisions. GPBank is an independent legal entity and its financial statements shall not be consolidated into the consolidated financial statements of VPBank.
VPBank shall exercise its ownership rights over GPBank in accordance with regulations. VPBank will contribute capital to the bank during the implementation of the mandatory transfer plan, providing additional financial resources to help it develop new business, improve performance, and strengthen operations. The total capital contribution will not exceed 20 per cent of VPBank’s charter capital. The contribution plan shall be carefully considered by the bank and subject to approval at the AGM to ensure the bank’s capital position and the interests of shareholders. In addition, VPBank shall transfer its experience and know-how to support the successful restructuring of GPBank which is in line with the mandatory transfer plan.
VPBank and GPBank are entitled to other support measures from competent authorities as prescribed in the Law on Credit Institutions and other applicable legal regulations.
The mandatory transfer of GPBank is expected to help improve its performance while ensuring the legitimate rights of VPBank’s shareholders and employees. It also demonstrates the high confidence of the government and the SBV in the prestige, capability and experience of VPBank; affirming its role in implementing the policies of the government and the SBV, thereby helping to stabilise the financial and monetary markets, and boosting the confidence of investors and the public in the banking system.
