The State Bank of Vietnam has placed Saigon Joint Stock Commercial Bank (SCB) under ‘special scrutiny’ after depositors started withdrawing their money from the bank last week.

The move is aimed at ensuring ‘smooth’ functioning of the privately-owned bank after it experienced bank run for a couple of days.

The bank run happened over an allegation that SCB has links to a real estate conglomerate that has been put under an inquiry of fraud, reported Bloomberg.

Truong My Lan, chairperson of the conglomerate Van Thinh Phat, along with other executives of the company were detained by the police on 8 October 2022, over accusation of procuring property through forged activities.

However, any links between the two is yet to be established.

Vietnam’s central bank has already asked four banks to help manage SCB, which is the country’s fifth largest commercial bank in terms of deposits and assets.

The four banks include Bank for Foreign Trade of Vietnam (Vietcombank), Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).

The State Bank of Vietnam will supervise the operations of SCB.

In a statement, the central bank said: “In order to stabilise SCB’s operations, the central bank decided to put the bank under special scrutiny.”

In the beginning of this week, the regulator took measures to pacify markets after financial stocks took a plunge and SCB’s bank run.

The statement added: “The central bank will also coordinate with other relevant ministries to take necessary and comprehensive measures to ensure SCB’s operations are safe and sound.”