ACB says depositors are back after Kien’s arrest

Aug 25th at 13:06

25-08-2012 13:06:22+07:00

Depositors have been sending their money back to ACB after a wave of withdrawals following the arrest of Nguyen Duc Kien, the bank’s co-founder, early this week, said ACB deputy CEO Nguyen Thanh Toai Friday.

On August 22, customers withdrew a massive VND5 trillion(over US$240 million) from ACB after Kien was arrested for illegal trading in his three personal companies.

The State Bank of Vietnam has assured depositors that Kien’s detention has nothing to do with ACB as the banking tycoon holds just less than 5 percent of ACB shares, and is no longer a major shareholder of the bank.

“As of Friday, depositors have returned to ACB,” Toai told reporters.

As of the end of the day, the bank received VND5 trillion worth of extended saving books from customers, and another VND1 trillion from 5,000 newly-transacted deposits, said Toai.

“We have won back customers’ trust, and they themselves also realized it’s no good withdrawing the deposits before due date,” he said, adding the situation has improved.

“Things will return to normal next week, and the arrests of Kien and ex-CEO Ly Xuan Hai will have little impact on ACB operations,” he asserted.

Hai, ACB former general director, was Thursday detained and charged with "intentionally violating State regulations on economic management and causing serious consequences."

Meanwhile, the number of customers who came to ACB headquarters to draw money on August 24 was also on the decline, and the bank is launching promotional programs to win back more depositors.