Central bank governor: "I would have withdrawn my money too'

TN News

Email Print

The State Bank of Vietnam Governor Nguyen Van Binh said the recent panic at Asia Commercial Bank (ACB) has been contained.

The recent arrests of co-founder Nguyen Duc Kien and then of chief executive Ly Xuan Hai led to a massive run on ACB.

Binh said that even though the central bank has promised not to let the bank collapse, he understood why some depositors who were not aware of the guarantee  would insist on taking back their money.

"If I didn't know anything, I would possibly have withdrawn my money too," he said when asked what he would do as a depositor.

The Ho Chi Minh City-based lender has been recognized by both local and international organizations as one of Vietnam's best banks, Binh told Thanh Nien in an exclusive interview on Friday.

"When a case like this happens, commercial banks will likely become cautious and may cut back on lending on the interbank market. But over the past few days, other banks continued to do business with ACB as usual"¦ So ACB didn't have any liquidity risk."

He said the money market has stabilized since Friday.

Kien was arrested August 20 for allegedly conducting illegal business activities. ACB's former CEO Hai was taken into police custody on August 23 due to unspecified economic violations.

ACB shares tumbled 19 percent in the three days after Kien's arrest, before gaining 3.8 percent Friday.

Like us on Facebook and scroll down to share your comment

More Business News