VietNamNet Bridge – The State Bank of Vietnam (SBV) plans to nationalize GPBank, and then possibly Ocean Bank if the bank is unable to handle its problems.

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Nguyen Phuoc Thanh, Deputy Governor of the State Bank, said the central bank has had plans to handle specific cases of weak banks like Global Petroleum Bank (GPBank) and Ocean Bank.

GPBank may be nationalized like Vietnam Construction Bank (VNCB), which was acquired for VND0.

GPBank is one of nine weak banks named by the State Bank of Vietnam in the restructuring plan of the first phase.

According to the original plan, 100 percent of GPBank’s capital was to be sold to a foreign partner. However, the deal failed so it may be nationalized.

For Ocean Bank, the central bank said the bank revealed its weakness after some of its officials were arrested.

It is expected that in 2015 many banks will be merged. According to Thanh, Nam A Bank is likely to be merged into Eximbank.

Previously, the State Bank Governor Nguyen Van Binh had revealed that several banks would be nationalized. He also added that this is fully consistent with the law of Vietnam and international practices.

When the shareholders lose their capital and even use social capital, they must go for the state takeover to stabilize the system and ensure legal rights for citizens and businesses. Binh also said that in 2015 six to eight banks would be handled.

Before the lunar New Year, Ms. Nguyen Thi Hong, Deputy Governor of the State Bank, also revealed the names of pairs of banks that may be merged in 2015 such as Vietinbank-PGBank; Vietcombank-Saigon Bank; BIDV and MHB.