A transaction is carried out at GP.Bank. This bank may be nationalised as part of the general banking reforms. -- Photo thoibaotaichinhvietnam.vn

HA NOI (Biz Hub) -- The reorganisation of Global Petrol Bank (GP.Bank) has seen progress, its chief executive officer Pham Quyet Thang said in an interview with news website ttvn.vn.

Thang made the announcement after State Bank of Viet Nam (SBV) Deputy Governor Nguyen Phuoc Thanh told the local press last week that GP.Bank may be nationalised.

The central bank may acquire this bank at a price of zero dong per share, as it will do with the Viet Nam Construction Bank, following a February announcement.

"It's normal for the SBV to have a backup plan to ensure systematic security while restructuring commercial banks," Thang commented. "Our management board and I always appreciate the support of the SBV."

GP.Bank is among the weak lenders that were forced to submit to reorganisation by the government in 2012 to create a healthier banking system.

Thang said the bank has since conducted drastic restructuring measures. "Challenges arising from the economic crisis have been handled slowly, and GP.Bank is seeing stable performance and development, gaining the trust of customers."

He claimed many investors have studied investment opportunities at the bank, noting that it has been able to select some domestic partners with proven financial capacity and management experience.

Thang added that the reorganisation has enabled the bank to better serve its customers. "The liquidity of the banking system, and GP.Bank as well, is very good, at present. We have taken out insurance on all our customers' savings accounts, so they can feel absolutely secure about their assets."

With regard to market speculation that Singapore's United Overseas Bank Limited will acquire GP.Bank, he said, "We studied the deal quite carefully, but it was unsuccessful as the partner did not adequately assess our national interests or the benefits to GP.Bank."

The development of retail banking services is a major goal for GP.Bank, according to Thang.

Ocean Bank, which has shown weakness after some former top officials were arrested for alleged economic fraud, may also be nationalised, stated Deputy Governor Thanh.

In a TV interview last month, SBV Governor Nguyen Van Binh affirmed that the action of the central bank in taking over fragile banks is in compliance with domestic laws and international routine, noting that it is a necessary action to ensure banking stability as well as to guard the interests of the public and Vietnamese businesses.

Some healthy banks will be involved in mergers and acquisitions to produce institutions that operate more efficiently and on a larger scale in the future, he added. -- VNS