VPBank to take over GPBank
VPBank to take over GPBank
The move is meant to help improve GPBank's operations as well as allow VPBank to expand its business. VPBank may either retain GPBank as a subsidiary, or sell or transfer the bank to a new investor after the mandatory transfer is completed.
The State Bank of Việt Nam officially announcing its decision to transfer GPBank to VPBank. Photo courtesy of VPBank |
The State Bank of Việt Nam (SBV) on Friday announced its decision to hand over the 100 per cent Stated-owned GPBank to VPBank in accordance with a mandatory transfer plan approved by the Government.
Mandatory transfer is a legal measure taken to restructure credit institutions under special control, as stipulated in the Law on Credit Institutions.
The move is meant to help improve GPBank's operations as well as allow VPBank to expand its business. VPBank may either retain GPBank as a subsidiary, or sell or transfer the bank to a new investor after the mandatory transfer is completed.
After the mandatory transfer, GPBank will remain as a sole member limited commercial bank, with its charter capital fully owned by VPBank, and will continue to conduct its commercial banking activities according to applicable regulations. GPBank will remain an independent legal entity and its financial statements will not be consolidated into the consolidated financial statements of VPBank.
All legitimate rights of depositors, rights and obligations of customers at GPBank will be guaranteed in accordance with agreements and legal provisions.
The transfer of GPBank to VPBank will be carried out under all applicable laws and with approval from all relevant authorities, with the aim of addressing GPBank’s weaknesses and transforming it into a healthy entity. For VPBank, the move also presents an opportunity to expand the bank's customer base and network.
VPBank will exercise its ownership rights over GPBank in accordance with regulations. To support GPBank, VPBank will contribute capital during the implementation of the mandatory transfer plan, providing additional financial resources to help GPBank develop its business, improve performance and strengthen its operations. The total capital contribution will not exceed 20 per cent of VPBank’s charter capital.
The contribution plan will be carefully considered by the bank and at the Annual General Shareholder’s Meeting to ensure the bank’s capital position and the interests of shareholders. In addition, VPBank will transfer its experience and knowledge to support the successful restructuring of GPBank in line with the mandatory transfer plan.
VPBank and GPBank are entitled to other support measures from relevant authorities as written in the Law on Credit Institutions and other applicable regulations.
VPBank owns a leading position in the Vietnamese banking system with strong financial capacity. The mandatory transfer of GPBank is expected to help improve GPBank’s 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, confirming VPBank’s 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.
As one of the earliest Joint Stock Commercial Banks established in Việt Nam, VPBank has a history of sustainable development spanning over 30 years. VPBank is currently one of the top-tier commercial banks in terms of efficiency and profitability. The bank has a strong presence in the retail and SME segments. At the same time, VPBank is also a pioneer in digital transformation, aiming to provide customers with the best-in-class and fastest financial products and services.
