Vietnam arrests former CEO, four other ex-executives of
Dong A Bank
Tran Phuong Binh,
former CEO of Dong An Bank.
Vietnam's police have
arrested the former chief executive officer and four other ex-staff of a
troubled partly private bank which has been under central bank surveillance
since August last year, the bank said on Saturday.
Former CEO Tran Phuong Binh
and four staff of the Ho Chi Minh City-based Dong A Bank, who have been
suspended since August 2015, were taken into custody as the police were
investigating the lender over its banking and monetary operations, the
unlisted bank said in a statement.
The State Bank of Vietnam,
the country's central bank, placed Dong A Bank, under special supervision on
Aug. 13, 2015 "for violations in financial management and credit
grants" by some executives, the statement said.
Vietnam's fragmented banking
sector has undergone major reform in the past few years, with stricter
lending and debt classification, forced takeovers, numerous fraud
investigations and the formation of a state-run asset management company to
support commercial lenders.
Bad debts have been cut to
2.62 percent of the sector's total outstanding loans in September, from 2.93
percent in September 2015, based on central bank data.
Dong A Bank, 6.87 percent
owned by the Communist Party chapter in Ho Chi Minh City as of late 2013,
said it recorded positive lending growth since this August, while the ratios
of its reserves for ensuring liquidity and repayments have now been above the
central bank's requirements.
The bank statement reaffirmed
"all its business activities have been normal, clients' benefits are
ensured."
On Friday Prime Minister
Nguyen Xuan Phuc said the government was seeking to step up dealing with
banks' bad debts and that the Asian Development Bank and a Vietnamese private
partner were planning to buy one of the country's weak banks.
He did not name the bank in
question.
Earlier this month, Moody's
said its "outlook for Vietnam's banking system over the next 12-18
months was stable, as it has been since December 2014."
Vietnam's macroeconomic
stability and resilient economic growth will continue to support the banks'
weak credit profiles, "while capital buffers will continue to
deteriorate because of high loan growth," Moody's said.
The central bank estimated
loans to grow 18 percent this year from 2015, accelerating from an annual
expansion of 17.26 percent last year.
REUTERS/TUOI TRE NEWS
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Thứ Bảy, 10 tháng 12, 2016
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