Nguyễn Thị Hồng, Governor of the State Bank of Vietnam, hands over the decision on the mandatory transfer of DongA Bank to Kim Byoungho, chairman of the Board of Directors of HDBank in Hà Nội on January 17. — Photo courtesy of HDBank

HCM CITY — The State Bank of Vietnam (SBV) announced the decision to implement the mandatory transfer of DongA Bank to Hồ Chí Minh City Development Joint Stock Commercial Bank (HDBank) under a plan approved by the Government on January 17.

This measure is part of the restructuring scheme for credit institutions, aimed at addressing shortcomings and strengthening the banking sector in line with the policies of the Party and the Government.

HDBank, with 35 years of experience, a strong financial foundation, solid reputation, and sound management capabilities, was entrusted by the Government and SBV to execute the mandatory transfer plan.

Following the transfer, DongA Bank will operate as a single-member limited liability bank fully owned by HDBank, ensuring all rights of depositors and customers are upheld.

DongA Bank will remain an independent legal entity and will not consolidate its financial reports with HDBank. It will be managed and supported by HDBank to gradually restore operations and improve its financial position.

The acquisition of DongA Bank provides HDBank with opportunities to expand its scale, grow credit portfolios, and develop new business models.

Both DongA Bank and HDBank will benefit from policies and mechanisms supported by the SBV to ensure an effective transfer process.

HDBank has successfully implemented several safe and effective restructuring and M&A projects, contributing to stability and growth for all parties involved.

HDBank will focus its resources and restructuring expertise to accompany and support DongA Bank in strengthening its operations, addressing issues, and aiming to build DongA Bank into a financially sound, secure, and sustainably growing bank. This effort ensures the rights of the bank’s employees and delivers enhanced benefits to customers and partners, according to the bank. — VNS