(Add details, background)
By Mai Nguyen
Feb 24 The State Bank of Vietnam has removed a
banking tycoon and his son from the board at Sacombank,
the central bank said in a statement on Friday.
Tram Be and his son Tram Khai Hoa, both members of
Sacombank's board of directors, will step down as a result of
the country's reforms of its banks, the central bank said.
Vietnam has been restructuring the fragmented sector and
helping lighten the load of bad debts by pushing for stricter
lending and debt classification rules, takeovers of weak lenders
and fraud investigations.
The country's central bank set up Vietnam Asset Management
Company to help tackle the then increasing problem of
non-performing loans, which accounted for 17.2 percent of total
loans in September 2012 but were down to 2.53 percent by
September last year.
The central bank approved a merger between Sacombank and
local lender Phuong Nam Bank in 2015 but at the same time took
over all Sacombank shares owned by then deputy chairman Tram Be
as part of the reform programme.
Friday's announcement by the central bank would officially
end Tram Be's direct involvement in the bank's management.
However, the central bank said in its statement that "Tram
Be and related parties have the responsibility to continue
solving existing issues at Sacombank in accordance with present
Sacombank's share price dropped 6.79 percent on Friday to
close at 10,300 dong ($0.45). Last month the bank reported a
67.5 percent fall in annual net profits to 372.5 billion dong
Sacombank did not immediately reply to a request for
($1 = 22,815 dong)
(Reporting by Mai Nguyen; Editing by Greg Mahlich)