Domestic Bonds

Saigon Commercial Bank provides liquidity after deposit run

The panic was sparked by suspicions of the bank’s links to real estate tycoon Truong My Lan arrested for financial fraud.

SCB has increased funds at all its transaction branches as well as deposits at the State Bank of Vietnam (SBV), the country’s central bank, to handle payments, including interbank payments, Hoan said during a briefing. a press briefing on Saturday in Ho Chi Minh City. . Hoan is in charge of the bank which currently does not have a CEO.

“We have also worked steadily and continuously with the SBV and relevant ministries and sectors to ensure the stability of SCB’s operations,” he said.

At the press conference, Vo Minh Tuan, Director of HCMC Branch of SBV, said, “We urge people not to panic and withdraw money early (before term deposits come to maturity) and lose their benefits. If the deposits are withdrawn before maturity, the interest rate is less than 1%, while the rate of a term deposit can reach 7% per annum.

SCB claimed that Truong My Lan, chairwoman of property developer Van Thinh Phat Group, who was arrested for alleged fraud related to the issuance and trading of bonds worth trillions of dong (1 trillion VND = $41.87 million), does not hold any managerial or executive positions with the Bank.

He also noted that An Dong Investment Corporation, a property company of Van Thinh Phat Group, which is linked to Truong My Lan’s violations in issuing and trading bonds, was not a shareholder in the bank.

The aforementioned cases have not affected the normal operations of SCB, the bank said, assuring that it has adequate solutions and resources to guarantee the rights and interests of its depositors as well as its partners and customers.

SCB board member Nguyen Tien Thanh, also chairman and CEO of Tan Viet Securities Joint Stock Company, died on Thursday night. He was only 50 years old. His sudden death also caused panic among depositors.

SBV Deputy Governor Dao Minh Tu also advised depositors on Saturday to consider the situation before deciding to withdraw their deposits, especially time deposits. He said withdrawing (time deposits) before maturity means customers will lose the interest to which they are entitled. In any situation, the central bank will maintain stable and continuous operations of the SCB and always ensure the safety of people’s deposits, Tu said.

SCB, merged by three banks, started official operations in January 2012. It is the largest private bank in terms of assets and one of the top 5 banks in Vietnam.

As of September 30, SCB had more than 4,100 shareholders, including 7 foreigners holding 27.9%, 11 domestic institutional shareholders holding 15.7% and other domestic individuals holding more than 56.11% of its share capital.