NDO - On January 17, in Hanoi, the State Bank of Vietnam held a ceremony to announce the Decision on compulsory transfer of Global Petroleum Commercial Joint Stock Bank (GPBank) to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and DongA Commercial Joint Stock Bank (DongA Bank) to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).
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. This issue has been of concern to competent authorities, and has been strongly directed by the Government and the Prime Minister. The State Bank of Vietnam has closely coordinated with ministries, branches and relevant agencies to direct banks to develop a compulsory transfer plan to submit to competent authorities for approval in accordance with legal regulations.
After the mandatory transfer, GPBank and DongA Bank will be one-member limited liability commercial banks with 100% charter capital owned by VPBank and HDBank.
Under the management of VPBank and HDBank as owners, all legal rights of depositors and customers at GPBank and DongA Bank continue to be guaranteed in accordance with the agreement and provisions of law. VPBank and HDBank are joint stock commercial banks with sufficient capacity, experience and solid foundation to successfully implement compulsory transfer plans. At the same time, with the mechanism applied according to the provisions of law, accepting compulsory transfer is also an opportunity for VPBank and HDBank to expand operations and deploy new, modern business models.
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Deputy Governor of the State Bank of Vietnam Pham Quang Dung announced the compulsory transfer decisions. |
Emphasizing the purpose of the compulsory transfer, Deputy Governor of the State Bank of Vietnam Pham Quang Dung said: The objective of the compulsory transfer of GPBank and DongA Bank to VPBank and HDBank is to help GPBank and DongA Bank (which are weak credit institutions) overcome accumulated losses, comply with regulations on ensuring operational safety, end special control, and return to normal operations. Thereby, contributing to ensuring financial and monetary security and macroeconomic stability.
“Similar to the two previous compulsory transfer cases, based on legal provisions and monetary policy objectives, the State Bank of Vietnam will apply comprehensive support measures - including financial support and other mechanisms - to banks receiving compulsory transfers and being compulsory transferred to create the best conditions for the successful implementation of compulsory transfer plans, ensuring the legitimate rights and interests of related parties,” Deputy Governor Pham Quang Dung affirmed.
Speaking at the ceremony, Chairman of the Board of Directors of VPBank Ngo Chi Dung shared: Restructuring, improving the health and strengthening the system of credit institutions is a major policy of the Party, the Government and the State Bank. VPBank's approval to receive compulsory transfer according to the decision just announced by the State Bank at today's ceremony demonstrates the trust of the Government and the State Bank in the prestige, capacity and experience of VPBank in participating in restructuring weak credit institutions, while also affirming the role of VPBank in the banking system.
“VPBank identifies that receiving the compulsory transfer and implementing the compulsory transfer plan is an important task with many challenges and difficulties, but VPBank will focus all resources and personnel of the entire system with the highest effort and determination to implement the policy of the Government and the State Bank in handling weak credit institutions, helping to stabilize the financial and monetary markets and increase the confidence of investors and the public in the banking system”, affirmed the Chairman of the Board of Directors of VPBank. At the same time, Mr. Ngo Chi Dung also clearly stated his commitment to turn the transferred bank from a weak bank under special control into a commercial bank operating normally and developing healthily, contributing to the overall development of the economy.
In addition to the responsibility of restoring operations for the transferred bank, VPBank also identified this as an opportunity to create new business drivers in the coming time.
After being accepted by VPBank for compulsory transfer, the transferred bank will be supported by VPBank in orienting its business model, developing new customers, and handling debt and asset recovery to gradually help the transferred bank overcome accumulated losses and exit special control. All obligations and legal rights of the transferred bank's customers are guaranteed.
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Mr. Pham Quoc Thanh - Member of the Board of Directors and General Director of HDBank spoke at the ceremony. |
Also at the handover ceremony, Mr. Pham Quoc Thanh - Member of the Board of Directors and General Director of HDBank emphasized: HDBank's official acceptance of DongA Bank not only marks an important milestone in HDBank's development journey but also contributes to the restructuring process of the Vietnamese banking system according to the direction of the Government and the State Bank of Vietnam. "We clearly identify this as a strategic task, demonstrating HDBank's pioneering responsibility in accompanying the Government and the State Bank of Vietnam to ensure the safe and sustainable development of the national financial and banking system," Mr. Pham Quoc Thanh affirmed.
At the same time, Mr. Pham Quoc Thanh also made clear his commitment to ensure the stable operation of DongA Bank. Accordingly, HDBank will focus necessary resources to accompany and support DongA Bank in implementing the three phases of the approved CGBB plan, aiming to gradually consolidate and restore normal operations, overcome weaknesses and shortcomings, and gradually turn DAB into a bank with a healthy financial situation, ensuring the ability to operate continuously and safely, and serving customers and partners best.
Previously, since DongA Bank was placed under special control (August 2015), HDBank was the pioneer bank participating in developing the DongA Bank restructuring plan according to the Law on Credit Institutions amended in 2017. This plan was reported by the State Bank of Vietnam to the Prime Minister and then submitted to the Politburo to ensure that the evaluation and approval process strictly complied with legal regulations.
Source: https://nhandan.vn/chinh-thuc-chuyen-giao-bat-buoc-gpbank-cho-vpbank-va-donga-bank-cho-hdbank-post856472.html
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