Press Release on restructuring of GP.Bank
In 2012, through the inspection and supervision, the State Bank of Vietnam (SBV) detected the fact that the Global Petroleum Joint Stock Commercial Bank (GP.Bank) showed much weakness in its operations with many potential risks, business loss, negative equity and ineffective banking management. Over the past three years, the SBV facilitated for the GP. Bank to seek its partners (including the foreign and domestic investors) and formulate feasible restructuring plan to be submitted to the SBV for approval in accordance with laws and Scheme of restructuring credit institutions for 2011 – 2015 approved by the Government in Decision No.254/QD – TTg dated March 1, 2012. However, the GP.Bank could not recommend any feasible restructuring plan while it continued to show much operational weakness and business loss. In order to control the risks, minimize asset loss of the GP.Bank, and ensure the safe and sound banking operations and deposits of organizations and individuals, the SBV decided to put the GP.Bank under the special control in line with law, at the same time, required the GP.Bank to hire independent auditing organization for auditing and valuating property to determine the real value of the GP.Bank’s charter capital. Based on the results of independent auditing and property valuation, the SBV required the GP.Bank to organize the Extraordinary Shareholders’ Meeting to approve the recapitalization plan to ensure the real value of charter capital not lower than the regulatory capital. However, the Extraordinary Shareholders’ Meetings organized by the GP.Bank were not successful, and the GP.Bank could not recommend any feasible measures on increasing charter capital.
Based on Law on Credit Institutions, Decision No.48/2013/QD-TTg dated August 1st, 2013 on the capital contribution, mandatory acquisition of the stakes of credit institution under special control and the directions of the Prime Minister, the SBV issued Decision No.1304/QD – NHNN dated July 7, 2015 on making mandatory acquisition of all stakes of GP.Bank at the price of VND 0 per share and turning GP.Bank into the One Member Limited Liability Global Petroleum Bank. The SBV has become the new owner of 100% of GP.Bank’s charter capital; terminating entire rights, interests and shareholder status of all GP Bank shareholders.
In order to ensure the banking management and governance, the SBV assigned the Vietnam Joint – Stock Commercial Bank for Industry and Trade (Vietinbank) to participate in the management of the One Member Limited Liability Global Petroleum Bank, at the same time, issued Decisions on appointing Board of Members, Board of Control, and Management Board of the One Member Limited Liability Global Petroleum Bank.
The SBV’s mandatory acquisition of all stakes of GP.Bank and turning GP.Bank into the One Member Limited Liability Global Petroleum Bank aim at helping the SBV to proactively restructure the GP.Bank, thereby ensuring the prudent banking sector and contributing to social safety. At the same time, the SBV asserted that all legitimate rights and interests of depositors at the GP.Bank will continue to be guaranteed in accordance with law.
Translated by LH