Monday, December 5 2016

VietNamNews

Top bank officials suspended

Update: August, 22/2015 - 09:49
Former Dong A Bank general director Tran Phuong Binh. — Photo thanhnien.com.vn
HCM CITY  (VNS) — The State Bank of Viet Nam (SBV) on Thursday suspended DongA Bank's director general Tran Phuong Binh and deputy director general Nguyen Thi Ngoc Van.

The suspension comes in response to a slew of legal violations committed by the HCM City-based bank on their watch a few years ago.

Binh became the bank's director general in 1998 and the deputy chairman in 2013, while Van has been in her post since 2001.

Vo Hai Nam, director of the Bank of Investment and Development of Viet Nam's (BIDV's) risk management department, will replace Binh with immediate effect.

Pham The Nguyen, director of a BIDV branch in HCM City, will take over from Van.

On August 13, the SBV reported the results of an inspection of DongA Bank, saying the bank had violated laws on financial management, credit and other business activities before 2012 and had caused serious losses for the bank and for the State.

The SBV also said DongA Bank was being placed under special control and some of the bank's leaders would be dismissed from their positions.

Later, on August 14, DongA Bank's Board of Directors announced that its shareholders were restricted from selling their shares in the bank.

DongA Bank also said the SBV would consider selling DongA Bank shares based on a proposal made by the bank's Special Control Unit.

The central bank plans to restructure the commercial bank to maintain its operations and protect the interests of its customers and investors.

North-South Construction Company is now DongA Bank's largest shareholder, with a 10 per cent stake in the bank. Truong Van Binh – the bank's recently suspended director general – and his family own 9.62 per cent of the bank, while Cao Ngoc Dung – Chairman and Director General of Phu Nhuan Jewelry Joint Stock Company – holds 7.7 per cent of the bank. — VNS

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