The State Bank of Vietnam on Friday transferred ailing lenders DongA Bank and GPBank to HDBank and VPBank, respectively, under a government order.
DongA Bank was put under special control by the State Bank of Vietnam since 2015 due to poor performance.
GPBank, carrying large debts, was bought by the central bank in the same year for zero dong.
State-owned lenders have been helping the two banks restructure since.
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State Bank of Vietnam Governor Nguyen Thi Hong attend the transfer ceremony of DongA Bank and GPBank to HDBank and VPBank, respectively, on Jan. 17, 2025. Photo courtesy of the State Bank of Vietnam |
The transfer aims to gradually restore normal operations, address weaknesses, and guide GPBank and DongABank toward becoming financially healthy banks, ensuring their ability to operate continuously.
GPBank, after the transfer, will become a independent legal entity owned 100% by VPBank, but its financial reports will not be consolidated with those of VPBank.
By taking in the lender, VPBank will have the opportunity to expand its business network, a representative said.
The lender will consider investing into GPBank but will keep the investment below 20% of VPBank’s charter capital.
