As planned, the State Bank of Vietnam (SBV) announced the decision to forcefully transfer DongA Bank and GPBank.

Similar to the case of OceanBank (now renamed MBV Bank) and Construction Bank (CB), GPBank is one of three banks acquired by the State Bank at a price of "0 VND" since 2015.

Meanwhile, DongA Bank is not a "zero-dong bank" like the other three weak banks, although it has been placed under special control by the State Bank since August 2015.

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DongA Bank was transferred this week. Photo: Luong Bang.

In accordance with the direction of the DongA Bank Special Control Board, from August 14, 2015, all DongA Bank shareholders are not allowed to transfer shares. In special cases, the State Bank will consider the transfer of shares based on the proposal of the Special Control Board.

The decision means freezing shareholders' assets before a further decision is made on the bank's fate.

Before being placed under special control, DongA Bank had a charter capital of VND5,000 billion. 100% of shareholders were domestic, of which corporate shareholders accounted for 40.68% and individual shareholders accounted for 59.32%.

Based on the list of shareholders updated on December 31, 2014, the legal entities holding large proportions include: Bac Nam 79 Construction JSC (Mr. Phan Van Anh Vu, also known as Vu "Nhom" is Chairman of the Board of Directors) holding 10% of charter capital; Phu Nhuan Jewelry JSC (PNJ, the family company of Mr. Tran Phuong Binh and Ms. Cao Thi Ngoc Dung) holding 7.7% of charter capital; Ho Chi Minh City Party Committee Office holding 6.9%; Ky Hoa Tourism and Trade LLC holding 3.78%; An Binh Capital JSC holding 2.73%; and Phu Nhuan Housing Construction and Trading LLC holding 2.14%.

Meanwhile, the individual shareholders holding the largest shares at DongA Bank are Tran Phuong Ngoc Ha (2.06%) and Tran Phuong Ngoc Giao (2%) - two children of Mr. Tran Phuong Binh and Ms. Cao Thi Ngoc Dung.

According to the latest management report for the first 6 months of 2024, the person related to the Board of Directors member is Ms. Hoang Thi Xuan, wife of independent Board member Tran Van Dinh, who owns 1.015% of DongA Bank's charter capital.

In addition, some members of the Board of Directors and related parties also own shares in this bank at a rate of less than 0.1%.

According to the indictment of the Supreme People's Procuracy announced in 2018 in the case at DongA Bank, founding shareholders accounted for 13.21% and ordinary shareholders accounted for 86.79%. Of which, the family of former General Director Tran Phuong Binh and Ms. Cao Thi Ngoc Dung and their children held 10.24% of the bank's charter capital.

In fact, before being placed under special control, DongA Bank had fallen into a state of negative equity.

According to Article 179 of the Law on Credit Institutions (CIs) 2024, the compulsory transfer of a commercial bank under special control is carried out when all conditions prescribed in the law are fully met. The first condition is: “The commercial bank has accumulated losses greater than 100% of the value of charter capital and reserve funds recorded in the most recent audited financial statements”.

The handling of shares and rights of shareholders at DongA Bank in particular and banks subject to compulsory transfer in general have been specifically regulated in this Law.

Specifically, Article 183 of the Law on Credit Institutions 2024 stipulates the organization of implementation of compulsory transfer plans. The State Bank decides on compulsory transfer and approves compulsory transfer plans.

Accordingly, from the date the State Bank decides on compulsory transfer, all rights and interests of owners, capital contributors, and shareholders of the commercial bank (CB) subject to compulsory transfer shall terminate.

The State Bank decided to reduce the entire charter capital of the compulsory transferred commercial bank to reduce the corresponding accumulated loss.

The transferee is required to carry out the procedures for changing the license and implementing the approved compulsory transfer plan.

Thus, with the above regulation, Ms. Cao Thi Ngoc Dung's family and related shareholders also terminate their shareholder rights at DongA Bank.