The State Bank of Vietnam (SBV) took over Global Petrol Bank on July7, after the bank failed to meet a deadline to have secured legalcapital requirements.
As part of the take over, the SBV acquiredall of the equity of the joint stock bank at a price of zero dong pershare, converting it into a one-member limited company with a chartercapital of more than 3 trillion VND.
The Global Petrol Bank, orGP.Bank, has been listed among the nation's weaker lenders that need tobe managed for three years, after a national plan was put in place torestructure the nation's banking system.
The bank has now beenplaced under special government supervision, following its inability toassure a minimum bank equity of 3 trillion VND (138.24 million USD), asstipulated by the law.
GP.Bank held its third irregularshareholders meeting this year on July 2, in an effort to seek approvalfrom shareholders for a charter capital supplement by July 4, followingthe order by the SBV.
The majority of shareholders, however, rejected the capital increase proposal of the bank's management board.
Further,SBV officials said the takeover would enable the central bank to becomemore active in restructuring GP.Bank, as well as assuring the securityand stability of the nation's banking sector.
The acquisitionterminated all statuses, including the rights and interests of existingshareholders in GP.Bank. But all legal rights and interests of existingdepositors at the bank will be guaranteed, officials confirmed.
Major lender Vietnam Bank for Industry and Trade, or VietinBank, is to take part in the management of GP.Bank.
Additionally,the former head of Vietinbank's supervisory board, Tran Thi Le Nga, wasappointed chairwoman of GP.Bank's management board.
On July 2,audited financial reports revealed that GP.Bank suffered a cumulativeloss of 12.28 trillion VND (584.76 million USD) and its ownershipcapital was some minus 9.20 trillion VND (438.10 million USD), as ofearly April.
Further, the bank's bad debt ratio was at a recordhigh of 45.37 percent, while its outstanding loans totalled only 6.67trillion VND (317.62 million USD).
This year, the SBV alsoacquired Vietnam Construction Bank and Ocean Bank due to violations ofhaving a lack of required capital.-VNA
As part of the take over, the SBV acquiredall of the equity of the joint stock bank at a price of zero dong pershare, converting it into a one-member limited company with a chartercapital of more than 3 trillion VND.
The Global Petrol Bank, orGP.Bank, has been listed among the nation's weaker lenders that need tobe managed for three years, after a national plan was put in place torestructure the nation's banking system.
The bank has now beenplaced under special government supervision, following its inability toassure a minimum bank equity of 3 trillion VND (138.24 million USD), asstipulated by the law.
GP.Bank held its third irregularshareholders meeting this year on July 2, in an effort to seek approvalfrom shareholders for a charter capital supplement by July 4, followingthe order by the SBV.
The majority of shareholders, however, rejected the capital increase proposal of the bank's management board.
Further,SBV officials said the takeover would enable the central bank to becomemore active in restructuring GP.Bank, as well as assuring the securityand stability of the nation's banking sector.
The acquisitionterminated all statuses, including the rights and interests of existingshareholders in GP.Bank. But all legal rights and interests of existingdepositors at the bank will be guaranteed, officials confirmed.
Major lender Vietnam Bank for Industry and Trade, or VietinBank, is to take part in the management of GP.Bank.
Additionally,the former head of Vietinbank's supervisory board, Tran Thi Le Nga, wasappointed chairwoman of GP.Bank's management board.
On July 2,audited financial reports revealed that GP.Bank suffered a cumulativeloss of 12.28 trillion VND (584.76 million USD) and its ownershipcapital was some minus 9.20 trillion VND (438.10 million USD), as ofearly April.
Further, the bank's bad debt ratio was at a recordhigh of 45.37 percent, while its outstanding loans totalled only 6.67trillion VND (317.62 million USD).
This year, the SBV alsoacquired Vietnam Construction Bank and Ocean Bank due to violations ofhaving a lack of required capital.-VNA
