Bank Bosses Leave Hot Seats Because Of New State Regulation

From left: Vo Quoc Thang, Duong Cong Minh, Do Quang Hien

Vu Van Tien has resigned from his post as chair of AB Bank as confirmed at the bank’s 2018 shareholders’ meeting held on April 25.

Tien is also the chair and CEO of Geleximco, chair of An Binh Securities and chair of Thang Long Cement JSC.

He left his position at AB Bank to be able to continue holding posts in other corporations. 

The Credit Institution Law which took effect on January 15, 2018 stipulates that chairs and CEOs of credit institutions must not be chairs and members of board of management, CEOs, deputy CEOs, or have equivalent positions in other corporations at the same time. 

This is why many high-ranking executives now have to choose to continue their posts either in banks or in other corporations.

Vo Quoc Thang left his hot seat at Kien Long Bank after five years to continue to be the chair of Dong Tam Group. 

Meanwhile, to stay in the post of chair of Sacombank, Duong Cong Minh had to resign as the chair of four companies – Him Lam, Bao Long Sportswear, Xin Man Development and Lien Viet Securities.

Minh admitted that it was a difficult decision. “Honestly speaking, only at this moment am I sure I will devote myself to Sacombank. Previously, I did not know if I would stay or I would leave soon,” he told reporters on the sidelines of Sacombank shareholders’ meeting recently.

Do Quang Hien, who was chair of T&T Real Estate, also decided to leave the post to stay in SHBank. He said that 80-90 percent of his time was used to manage the bank.

Analysts said the banking system would see more bankers taking leave. The Law on Credit Institutions took effect three months ago, but there are still many people concurrently holding posts at banks and other businesses.

Nguyen Thi Nga, for example, is still chair of SeABank, chair of BRG Group and chair of a series of other companies, while Nguyen Thi Phuong Thao is the CEO of Vietjet Air and deputy chair of HDBank.

Nguyen Tri Hieu, a banking expert, said the regulation will help wipe out cross-ownership in financial institutions and allow bank managers to concentrate on certain business.

Hieu said state agencies need to take drastic measures to be sure that individuals leaving banks or companies would not continue hold control and have influence in other legal entities. 

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Chi Mai