The institution in question, as per VPBank's disclosure, represents no more than 5 per cent of VPBank’s total assets and owner's equity as of the end of 2023, with its charter capital not exceeding VND5 trillion ($208 million).

Post-acquisition, this entity is set to operate as a wholly-owned one-member limited liability bank under VPBank's ownership.

The VPBank Board of Directors is tasked with executing all necessary procedures for this compulsory transfer. Their responsibilities include selecting the bank to be acquired as per approval, deciding on capital contributions, formulating support strategies for the transition, and overseeing other related operations.

Furthermore, the AGM documents stipulate that individuals and teams involved in the acquisition process will be exempt from personal liabilities, including compensation for damages and related costs, should the transfer not meet its objectives or encounter unforeseen risks.

Specific details about the weak financial institution VPBank plans to absorb were not disclosed in the AGM documentation.

Reflecting on last year’s AGM, the bank's chairman Noo Chi Dung mentioned VPBank's involvement in the restructuring of financially weak institutions, noting it as one of four banks engaged in the restructuring of entities under compulsory transfer.

In October 2023, Pham Thi Nhung, VPBank's deputy CEO, indicated the bank had prepared resources for the takeover and restructuring of a bank designated for compulsory transfer, aiming to commence restructuring immediately after the transfer.

"We have readied our resources and are set to initiate the bank's restructuring as soon as it is handed over," Nhung said.

The State Bank of Vietnam had earlier indicated that the transfer of four particularly weak banks had been approved, including DongABank and three others slated for compulsory purchase: CBBank, OceanBank, and GPBank, with their respective charter capitals detailed.

Prior to VPBank, other major banks like Vietcombank, MB, and HDBank had proposed to their shareholders plans for similar compulsory acquisitions.

It has been confirmed that CBBank will merge with Vietcombank, while OceanBank is currently supported by MB, making GPBank a likely candidate for VPBank's acquisition.