DongA Bank allowed to name new boss as central bank changes mind on outsider

Tuesday, Aug 25, 2015 15:58

Transactions are carried out at DongA Bank. — File Photo

HCM CITY (Biz Hub) — The DongA Bank management board has nominated deputy general director Nguyen An to run the bank until a permanent replacement is identified for sacked general director Tran Phuong Binh.

The State Bank of Viet Nam had earlier dismissed Binh and his deputy Nguyen Thi Ngoc Van for violations on their watch, and replaced them with executives from the Bank for Investment and Development of Viet Nam (BIDV) on August 20.

But then the central bank changed its mind, cancelled the duo's appointment, and said DongA could choose its own head.

Nguyen Hoang Minh, deputy director of the central bank's HCM City office told Tuoi Tre newspaper, that the change was based on "practical developments" at DongA over the last few days.

An will ensure routine operations re not affected while the bank awaits further directives for appointing a new general director.

He has worked at DongA for 22 years and became deputy general director n 2008. He has reportedly been quoted as saying that since he had headed retail banking – a core area for the bank – he is confident of leading the lender through this hard period.

The central bank has placed DongA under special supervision since the middle of this month when inspectors uncovered illegal activities by the bank that could cause serious financial consequences for the State and citizens. It has also promised a thorough overhaul of the bank.

DongA, which has a capital of VND5 trillion (US$222.22 million), targets pre-tax profits of VND200 billion ($8.89 million) this year after a slump last year. — VNS

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