State Bank ensures system’s safety after banker’s arrest

August 22, 2012 | 10:41

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The State Bank today assuring the safety of the country’s banking system after police arrested a founder of Asia Commercial Bank (ACB) the day before.

Nguyen Duc Kien

A State Bank statement said the arrest of former ACB vice chairman Nguyen Duc Kien did not relate to business at the lender, one of Vietnam's largest banks. It added the arrest related to wrongdoings in connection with three private firms where he is chairman.

“Therefore, depositors at Asia Commercial Bank can completely feel secure. The State Bank of Vietnam is closely monitoring the monetary market. In case of need, the State Bank is willing to provide liquidity support to stabilise and make the banking system safe,” said the statement.

Kien, 48, was accused of wrongdoings in connection with B&B Investment and Trading, ACB Hanoi Investment and Asia Hanoi Financial Investment, according to Vietnam’s Ministry of Public Security. Police arrested him late August 20 in Hanoi.

The State Bank statement said his arrest “is a normal activity by the Investigation Police Agency.”

The central bank said Kien currently did not take part in running Ho Chi Minh City-based ACB.

He is deputy chairman of the Vietnam Professional Football Joint Stock Company, which runs the country’s professional football league.

London-based Standard Chartered Bank owns 15 percent of ACB.
ACB board of directors member and deputy CEO Huynh Quang Tuan said August 21 that Kien currently owned less than 5 per cent of ACB. Under Vietnamese laws, this holding is smaller than the ratios required to publicise.

ACB shares dropped almost 7 per cent August 21. Shares in other listed banks such as Eximbank and Sacombank also fell.

By Tuong Thuy

vir.com.vn

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