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VietNamNews

Embattled bank names new CEO

Update: August, 24/2012 - 11:09

HCM CITY — Asia Commercial Bank yesterday named permanent deputy general director Do Minh Toan as its new CEO to replace Ly Xuan Hai who has resigned.

The appointment needs to be approved by the State Bank of Viet Nam.

The bank did not say why Hai resigned.

He is being questioned by the police following the arrest of tycoon Nguyen Duc Kien on Monday for alleged economic fraud.

Kien used to be a vice chairman of ACB until 2010 and the public perception is that he still has close links with the bank.

Meanwhile, Nguyen Thanh Toai, the bank's deputy general director, said yesterday that all withdrawal of deposits, including premature, was possible because preparations had been made to ensure adequate liquidity.

General director Do Minh Toan said the bank has now VND10 trillion (US$480 million) in cash, apart from VND5 trillion the State Bank of Viet Nam is ready to lend. Besides, it has a large amount in foreign currency.

ACB has total assets of VND225 trillion.

Strategic partners like Standard Chartered Bank and fund manager Dragon Capital have also promised support. The former owns a 15 per cent stake in ACB and the latter, 6.7 per cent

Toan said withdrawals were reducing. But he warned depositors to beware of groundless rumours to avoid losses.— VNS

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