SCB was subjected to special control measures by the State Bank of Vietnam, which says the move was to stabilize the bank’s operations after many days of massive withdrawals by customers because of concerns about the arrest of Ms. Truong My. Lan.
State media on the evening of October 15 quoted a statement from the State Bank (SBV) saying:
“In order to stabilize the operation of SCB, the State Bank decided to take special control of this bank.
The State Bank’s special control over a credit institution is a professional measure in accordance with the law in order to strictly control and limit negative impacts on that credit institution and the system of credit institutions.”
The announcement does not specify the duration of this special control, however, Article 146 of the Law on Credit Institutions 2010, defines: “Special control is the fact that a credit institution is placed under the direct control of the State Bank due to the risk of insolvency.”
Clause 3, of this Law, also stipulates: “The State Bank considers and puts a credit institution under special control when the credit institution falls into one of the following cases: There is a risk of insolvency; Irrecoverable debt has the risk of leading to insolvency.”
In addition, when the accumulated loss of a credit institution is greater than 50% of the actual value of the charter capital and the reserve funds recorded in the most recent audited financial statement, it will also be subject to special control.
Tuoi Tre online newspaper quoted the announcement saying that the State Bank selected and appointed officers with experience, capacity, and professional qualifications from state-owned commercial banks (Vietcombank, BIDV, VietinBank, Agribank) to participate in the management and administration of SCB.
At the same time, the SBV will coordinate with relevant ministries and branches to synchronously implement necessary solutions for the bank to operate safely and healthily.
As we have informed, from the afternoon of October 7, there was a phenomenon of mass people flocking to the transaction offices and ATMs of SCB to withdraw money when they heard the news that the Chairman of Van Thinh Phat Group – Ms. Truong My Lan was arrested, although this information was only announced on the morning of October 8.
SCB Co Giang transaction office is located on the ground floor of the headquarters of Van Thinh Phat Group at 193-203 Tran Hung Dao Street, Co Giang Ward, District 1, Ho Chi Minh City.
The investigative police agency also searched the headquarters of Ms. Truong My Lan, but when reporting to the press, the images of the SCB bank sign were blurred.
The State Bank immediately issued a notice advising people not to withdraw money, Governor Nguyen Thi Hong affirmed to ensure the deposit amount of people in all cases.
SCB continuously issued statements affirming that “An Dong Company is not a shareholder of SCB, Ms. Truong My Lan does not hold managerial and executive positions at SCB. Therefore, it does not affect normal business operations of SCB,” while also denying the death of two senior leaders.
However, the number of people coming to withdraw money at SCB branches in the provinces and making transfers on SCB’s app did not decrease a few days later.
On October 12, SCB said that the amount of money customers sent back to the bank reached nearly VND6 trillion ($$250 million) in just one day, a sharp increase from more than VND 1.6 trillion the previous day.
Thoibao.de (Translated)
