SBV assures DongA Bank ‘normal’ after ex-boss’ arrest

December 13, 2016 | 08:36

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Operations are going on “normally” at HCM City-headquartered DongA Bank after five of its managers and employees were arrested for financial wrongdoing, according to the central bank.

A branch of Dong A Bank in HCM City. The central bank said the arrests of five suspended employees, including its general director, has not had an adverse effect on the beleaguered lender. -VNS Photo

Nguyen Hoang Minh, deputy general director of the State Bank of Việt Nam’s HCM City office, said the central bank is closely monitoring DongA Bank, Saigon Times Daily reported.

“We confirm that the bank’s operations are going on as usual. The State Bank of Việt Nam has sufficient resources to bail it out under any circumstances.”

DongA Bank officials have informed partners, clients and shareholders about the arrests, assuring that customers’ interests would be protected.

The bank would meet all its financial obligations to partners and customers, they promised.

The lender’s board of directors and management last Saturday announced on its website that the Ministry of Public Security’s Economic Police Agency has arrested suspended general director, Tran Phuong Binh, his deputy, Nguyen Thi Ngoc Van, and three other employees for flouting banking and monetary regulations.

All five were suspended in August last year when the bank was put under special supervision for suspected illegal activities.

Immediately after their suspension the SBV picked two outsiders to serve as chairman and CEO to help the bank steer clear of any potential trouble.

After more than a year now the bank has made fair progress. It has achieved positive lending growth since August this year, while its liquidity and solvency figures are good.

On its website, the SBV said it would continue to take all measures to ensure DongA Bank’s safety and protect the interests of depositors and the economic rights and obligations of all stakeholders.

Besides, the bank would be restructured to improve its safety and health further, it added.