Vietnam spanlaces DongA Bank under sspanecial suspanervision; leaders face dismissal

The DongA Joint Stock Commercial Bank (DongA Bank) has been placed under special supervision by the State Bank of Vietnam (SBV), whereas many of its leaders will be dismissed, the country’s central bank said Friday.

DongA Bank has been found violating many regulations on financial management, credit granting and other businesses, which already caused serious consequences, the SBV said in an announcement of the results of its comprehensive inspection of the lender’s operations from the year 2012 backward.

The central bank has thus decided to put DongA Bank under special supervision, and will suspend and remove many of its executives from their posts.

Those involved in the alleged wrongdoings at the bank will also be strictly penalized, according to the SBV.

“The SBV will choose and assign competent bankers from BIDV [Bank for Investment and Development of Vietnam] to take over some main posts [at DongA Bank] to administer, manage and supervise that bank,” the announcement reads.

The BIDV is still controlled by the state.

The central bank also guaranteed that it will enact necessary measures to ensure that DongA Bank will remain operational safely and protect the rights and interests of its depositors.

“The SBV will also put DongA Bank under a comprehensive restructuring so that it can have safe and sustainable development,” the central bank said.

DongA Bank only posted a pretax profit of VND35 billion (US$1.61 million) in 2014, a massive 96 percent decline from 2013, according to news website VnExpress.

The lender’s credit growth rate last year was only one percent, whereas its non-performing loan ratio was 3.7 percent.

DongA Bank thus did not pay dividends to its shareholders last year, while CEO Tran Phuong Binh had to apologize to the shareholders at a meeting on July 21.

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Vietnam spanlaces DongA Bank under sspanecial suspanervision; leaders face dismissal

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