Police in Vietnam arrested Monday the deputy general director of Ocean Commercial Joint Stock Bank for investigation into lending violations.
The arrest of Nguyen Van Hoan, 37, followed that of Ocean Bank chairman Ha Van Tham in October, for investigation of the same charge.
Initial investigations showed Hoan acted as an accomplice with Tham to approve loans worth "multiple billions dong" without proper collateral, according to the police.
Just before the arrest of Tham, 42, on Oct. 24, the State Bank of Vietnam, the country's central bank, announced that the board of Ocean Bank on Oct. 23 dismissed Tham from his post in Ocean Bank following allegations of “seriously violating banking regulations.”
"Through investigation, the State Bank of Vietnam has found some serious violations of the law by Mr. Ha Van Tham himself," it said in a statement.
According to local media, among the alleged "lending violations" was Tham's approval of a VND500 billion ($23.5 million) loan to Trung Dung Company without proper collateral in 2012.
The Ho Chi Minh City-based private real estate company is likely to default on the loan.