HANOI (Reuters) – Vietnam Prosperity Joint Stock Commercial Bank (VPBank) said the central bank has directed it to take over weaker lender Global Petro Sole Member Limited Commercial Bank (GPBank) as part of a drive to restructure of the banking system and tackle bad debt.
“The transfer of GPBank to VPBank is carried out in accordance with the current applicable laws and approvals from the competent authorities, with the aim of gradually improving GPBank’s normal operations, addressing its weaknesses and transforming GPBank into a healthy and continuously operational entity,” VPBank said in a statement on Friday.
VPBank said it may either retain state-owned GPBank as a subsidiary or sell it after the mandatory transfer is completed.
VPBank said it will contribute up to 20% of its charter capital to help GPBank develop its business, improve performance, and strengthen its operations.
(Reporting by Phuong Nguyen and Khanh Vu; Editing by John Mair)
