Vietnam - Depositors withdrew VND5 trillion from ACB on August 22

VietNamNet Bridge – Vice CEO Do Minh Toan of the Asia Commercial Bank (ACB), who temporarily replaces CEO Ly Xuan Hai to run the bank, said that depositors withdrew VND5 trillion ($238 million) from ACB on August 22 but the bank’s liquidity is still fine.

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According to Toan, ACB currently has VND6.1 trillion ($290.5 million) and $165 million available for its depositors. The bank also has VND36 trillion (over $1.71 billion) of debt in the inter-banking market which is being collected.

Toan said ACB had learned experienced from the crisis in 2003. ACB leaders met on the evening of August 20, after Nguyen Duc Kien’s arrest, to work out five scenarios to control the situation. He said that the situation is completely under control now.

Another ACB Vice CEO, Nguyen Thanh Toai, said on August 22 evening that ACB had borrowed VND7 trillion ($333.3 million) from the open market operations (OMO) to ensure its liquidity.

Toai said depositors’ withdrawal of money from ACB is the short-term reaction, owing to rumors around ACB. Toan believed that ACB could well manage its liquidity.

In the last two days, the State Bank of Vietnam (SBV) repeatedly stated that it would support ACB’s liquidity.

SBV chief inspector Nguyen Huu Nghia said on the afternoon of August 22 that the SBV was closely watching at the developments of the monetary market and ACB’s operations.

Nghia said that the central bank and the whole system of credit institutions committed to assist ACB to ensure its liquidity.

Translated by M. Lan

(Source: DNSG)

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