Depositors protected no matter what: central bank governor

The government will protect depositors' interests at banks, including the Saigon Commercial Bank (SCB), in all circumstances, State Bank of Vietnam Governor Nguyen Thi Hong said Monday.

Recent rumors about Ho Chi Minh City-based SCB’s operations have affected the bank, and the central bank has been acting to ensure its normal functioning and liquidity, she said in a release.

“Depositors at SCB should keep calm and not make premature withdrawals,” the governor stressed.

Since Friday, adverse information about SCB has spread on social networks, leading to massive withdrawals of deposits before their due dates from the private bank.

On Saturday, amidst the run on deposits, the central bank pledged to keep the lender’s operations stable and ensure the legitimate rights of depositors.

The deposit withdrawals appeared to have been triggered by news of the sudden death of Nguyen Tien Thanh, chairman and CEO of Tan Viet Securities. Thanh, 49, was also an independent board member of SBC.

Rumors were also rife about Thanh’s relations with HCMC-based property developer Van Thinh Phat Group. On Saturday, police arrested Van Thinh Phat chairwoman Truong My Lan for alleged fraud in the issuance and trading of corporate bonds in 2018 and 2019.

Also detained on the same charges are: Truong Hue Van, 34, CEO of HCMC-based Windsor Real Estate Management Group JSC; Nguyen Phuong Hong, 38, a staff of Van Thinh Phat Group; Ho Buu Phuong, 50, former chairman of Tan Viet Securities and former Deputy CEO in charge of finance at Van Thinh Phat.

SCB, an unlisted bank, is one of the largest private lenders in Vietnam. As of the end of the second quarter, the bank's total assets were valued at more than VND760,000 billion ($31.83 billion).

Total deposits exceeded VND595,440 billion ($24.94 billion) at the end of June, up more than 16% compared to the beginning of the year. Its outstanding loans hit VND389,790 billion ($16.32 billion), up 8%.