Agribank executive named chairman of Saigon Commercial Bank

Phan Dinh Dien, a board member of wholly state-owned Agribank, was appointed chairman of private lender Saigon Commercial Bank (SCB) to replace Vu Anh Duc under a decision issued by the State Bank of Vietnam (SBV) on Friday.

Duc, who assumed the position on October 15, 2022, is leaving to take over an important position at state-owned VietinBank, one of the "Big 4", together with Vietcombank, BIDV and Agribank.

Dien boasts 30 years of experience in the banking sector, especially in debt settlement, and has held various leadership positions at different levels at Agribank.

The central bank said that after more than a year under special control, SCB has actively coordinated with the SBV’s relevant units, ministries and agencies in Ho Chi Minh City to take solutions in line with legal regulations to ensure the safety of the banking system as well as the rights and interests of depositors.

The Ho Chi Minh City-headquartered bank's operations have stabilized after handling difficulties and obstacles, and focusing on devising a restructuring project, the SBV said.

In mid-October, many SCB branches and transaction offices recorded a run on deposits due to concerns about the bank’s financial health.

The deposit withdrawals seemed to have been triggered by news of the sudden death of Nguyen Tien Thanh, chairman and CEO of Tan Viet Securities, and the arrest of Truong My Lan, chairwoman of property developer Van Thinh Phat Group. Thanh, 49, was an independent board member of the bank.

SCB later clarified the arrest of Lan does not affect its business as she does not hold any executive role at the bank.

The SBV then released a statement confirming that “all deposits at local banks, including SCB, are guaranteed by the government no matter what.” It recommended that depositors refrain from making withdrawals before the due date of fixed term deposits in order to avoid loss of interest.