The State Bank of Vietnam (SBV) has completed the mandatory transfer of four underperforming banks as part of a strategic effort to stabilize the nation’s banking sector.

CB Bank, MBV (formerly OceanBank), GPBank, and DongA Bank are now wholly owned subsidiaries of their respective transferee banks.

Each bank will continue operating as independent legal entities, separate from the consolidated financial statements of their new parent companies.

This significant restructuring process began on January 17, with GPBank transferred to VPBank and DongA Bank to HDBank.

Earlier, in October 2024, OceanBank was renamed MBV and transferred to MB Bank, while CB Bank became a subsidiary of Vietcombank. All four banks had been under special control since 2015 due to severe operational challenges.

Despite their troubled histories, these banks maintain their original charter capital and organizational structures. The SBV had previously acquired GPBank, CB Bank, and OceanBank for the symbolic price of "zero dong" due to financial difficulties.

Following the transfers, the banks continue to operate under the legal framework for single-member limited liability banks, fully owned by their respective transferee banks.

Rights and obligations of depositors and customers remain protected by law, ensuring continuity and trust in banking operations. Each bank may either continue as a subsidiary or be sold to new investors upon completion of the mandatory transfer plans.

GPBank operates with a charter capital of 3.018 trillion VND (approximately $126 million), supported by a workforce of 1,400 employees across 85 locations. Its network is concentrated in Hanoi, which hosts 45 branches, and Ho Chi Minh City, where it operates seven branches.

VPBank has pledged to inject additional capital into GPBank during the restructuring process, with contributions not exceeding 20% of VPBank’s total charter capital, aiming to bolster GPBank’s financial resources and enhance its operational performance.

DongA Bank, before falling under special control in 2015, had a charter capital of 5 trillion VND (approximately $210 million) and total assets of 87.258 trillion VND.

It employed 4,183 staff across 212 branches and transaction offices. DongA Bank was a prominent player in remittances and card services, serving over 7.5 million customers at its peak in 2014. However, mismanagement and high levels of bad debt resulted in negative equity, prompting the SBV to intervene.

HDBank, now managing DongA Bank, plans to use its resources and expertise to restructure the institution, aiming to restore financial stability and improve service quality for customers and staff alike.

MBV, the successor to OceanBank, has a charter capital of 4 trillion VND (approximately $168 million). It employs 2,290 people and operates through 101 branches and transaction offices nationwide.

In 2015, OceanBank transitioned to a single-member limited liability model under state ownership before its recent transfer to MB Bank. This marks a turning point in its development, with MB Bank now guiding its future growth.

CB Bank, with a charter capital of 3 trillion VND (approximately $126 million), employs over 1,600 staff across 92 branches and offices.

Originally known as the Vietnam Construction Commercial Joint Stock Bank, it was restructured into its current form in 2015.

On October 17, 2024, CB Bank was officially transferred to Vietcombank, where it will remain a subsidiary during the transition period.

The restructuring of these banks underscores the SBV's commitment to stabilizing Vietnam’s financial system while protecting the rights of depositors and customers.

By ensuring operational continuity and exploring future partnerships or sales, the SBV aims to guide these institutions toward a healthier and more sustainable future.

Tuan Nguyen