Troubled SCB gets new chairman

By Quynh Trang   October 15, 2022 | 07:28 pm PT
Troubled SCB gets new chairman
Vu Anh Duc, a former Vietinbank director, is the new chairman of Saigon Joint Stock Commercial Bank (SCB). Photo courtesy of Vietinbank
The Saigon Joint Stock Commercial Bank (SCB) has four new board members and a new chairman per a decision by the State Bank of Vietnam.

Vu Anh Duc, 45, has replaced Bui Anh Dung as chairman and legal representative of SCB, the bank announced Saturday.

The new SCB chairman, who holds a Masters degree in Development Economics, was previously director of the HCMC branch of the Vietnam Joint Stock Commercial Bank for Industry and Trade, or Vietinbank.

The central bank has appointed four other employees of state-owned commercial banks (Vietcombank, BIDV, Vietinbank, Agribank) to participate in the management of SCB: Pham Quang, Vo Van Buu, Trang Nhan Hau and Ly Thanh Phuong.

The new appointments took effect Oct. 14, the day the central bank decided to place SCB under special control to ensure normal operations and liquidity.

Since a recent withdrawal rush, SCB has increased its interest rate for 12-month term deposits by one percentage point to 8.55%, the highest in Vietnam’s banking system.

State Bank Governor Nguyen Thi Hong had affirmed that the government would protect SCB depositors and customers in all circumstances.

The bank had earlier said that Truong My Lan, chairwoman of property developer Van Thinh Phat Group, who had been arrested for alleged fraud related to issuance and trading of bonds worth trillions of Vietnamese dong (VND1 trillion = $41.43 million), does not hold any managerial or executive position in it.

It also noted that the An Dong Investment Corporation, a real estate firm under Van Thinh Phat Group, which is linked to Truong My Lan’s violations in the issuance and trading of bonds, was not a shareholder of the bank.

In the history of Vietnam’s banking industry, many institutions placed under special control have recovered and thrived later.

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