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Banking & Finance

DongA Bank placed under special control

Released at: 09:52, 15/08/2015

DongA Bank placed under special control

Central bank releases results of inspections of bank's business dealings.

by Son Ho

On August 14 the State Bank of Vietnam (SBV) announced the conclusion of its full inspection of DongA Bank, with it deciding to place the bank on the list of those to be under special control. The inspection found that in 2012 and earlier the bank had been in violation of many regulations on financial management, providing credit and conducting other business that seriously affected its financial circumstances.

The central bank also decided to dismiss or suspend the employment of many key leaders. Law enforcement agencies will strictly handle those who caused losses to the State budget, with officials from the Bank for Investment and Development of Vietnam (BIDV) being appointed to key leadership positions.

The press release from the SBV also confirmed that it will implement measures to ensure the safety of operations and the rights of depositors and other involved parties.

In response, DongA Bank announced that "With the SBV and DongA Bank implementing comprehensive restructuring solutions, its business activities will continue as normal."

In the first seven months of the year DongA Bank recorded more than VND105 billion ($4.75 million) in pre-tax profit, or 53 per cent of the annual target. Mobilized capital had reached nearly VND82 trillion ($3.71 billion) as at the end of July.

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