Mandatory transfer of 2 more zero-dong banks?

Deputy Governor of the State Bank Dao Minh Tu said that the State Bank has submitted to the Government for approval the transfer of Global Petroleum Bank Limited and Dong A Commercial Joint Stock Bank and is likely to have a plan before the Lunar New Year.

According to Mr. Tu, in 2024, Bank The State has carried out the mandatory transfer of two zero-dong banks, CBBank and OceanBank (now renamed MVB) to two banks, Vietcombank and MB.

Currently, the State Bank has submitted to the Government for approval. transfer Global Petroleum Bank (GPBank) and Dong A Commercial Joint Stock Bank (Dong A Bank).

"If passed, State Bank wish to complete transfer before Lunar New Year to complete the plan to transfer 4 weak banks that has been set out," said Mr. Tu.

GPBank and DongABank are preparing to transfer before Lunar New Year.

Only for Banks SCB and the State Bank will continue to implement measures as prescribed, maintain stability and ensure that people's deposits and savings are due. The operator will handle existing problems and weaknesses; coordinate with competent authorities to ensure principles and legal regulations to handle violations by individuals causing damage to the bank.

The State Bank will submit a plan. build restructuring actively to SCB Bank as soon as possible to submit to competent authorities for approval.

Previously, at the Conference on deploying banking tasks in 2025 on December 14, Governor Nguyen Thi Hong said that the State Bank has made important progress in handling weak banks. In 2024, two out of four banks 0 VND has been compulsorily transferred. The remaining two banks are being submitted to the competent authority for early approval in 2024.

"With a very urgent spirit, it is hoped that in 2024, all four banks will be compulsorily transferred. This marks a very difficult, unprecedented process, requiring close coordination between ministries, agencies, departments and sectors," said Mr. Tu.

It is known that in addition to Vietcombank (receiving CB transfer) and MB (receiving OceanBank transfer), there are two other banks: VPBank and HDBank also announced a policy of accepting transfers of weak banks.

Receiving compulsory transfer A weak bank has been mentioned many times at previous VPBank General Meetings of Shareholders. However, it was not until the 2023 General Meeting of Shareholders that the bank's senior leaders spoke up to confirm that VPBank is one of the four banks participating in the restructuring of weak banks.

The target has not been announced by VPBank, but there are many speculations in the market that this bank will be the "destination" of GPBank. Previously, at the Ceremony to announce the decisions to appoint the new Chairman and General Director of GPBank in September 2022, there was also the participation of VPBank's leadership representatives.

At the 2024 Annual General Meeting of Shareholders, VPBank's Board of Directors also submitted and received approval from shareholders for a plan to compulsorily transfer a weak commercial bank.

Regarding the reason why VPBank participated in the zero-dong bank restructuring, Chairman Ngo Chi Dung said that in terms of financial capacity and management capacity, not every bank can perform the mandatory transfer of weak banks because these banks have large accumulated losses and bad debts. And VPBank is "somewhat special" because the participation of SMBC has helped the bank have a large capital base.

According to Mr. Dung, from a financial perspective, participating in restructuring does not benefit VPBank, but there are other attractive points such as: credit growth at a higher rate than the industry average, opening foreign ownership room because foreign investors also want to increase their ownership ratio.

"In addition, participating in restructuring zero dollar bank is to contribute to better banking system security, contributing to the system," said Mr. Dung.

At HDBank, in 2022, this bank asked for opinions and received approval from shareholders on the policy of participating in restructuring a weak bank.

At the 2023 Annual General Meeting of Shareholders, HDBank was also approved by shareholders to continue participating in the restructuring program of banking credit institutions according to the policy of the State Bank; at the same time, the updated, revised and supplemented contents of the compulsory transfer acceptance plan were approved according to the actual situation and instructions and approvals of competent state agencies at the time of submission.

Source