The Politburo, the country’s most powerful body, has decided to give warning, the second of four discipline grades of the Communist Party of Vietnam (CPV), to a former governor of the central bank.

Nguyen Van Binh, head of the Party's Central Economic Commission and former governor of the State Bank of Vietnam. Photo: VNS

The punishment, which was decided at a meeting on November 6 chaired by Secretary General of the CPV and State President Nguyen Phu Trong, is for Nguyen Van Binh, 59, for mismanagement when he held the position of governor of the State Bank of Vietnam between August 2011 and April 2016. 

When he took office, Vietnam’s banking system was faced with multiple risks such as a high level of bad debt, rampant cross ownership, two-digit inflation, high-sky interest rates, growing dollarization and ‘goldenization,’ among others.

Under his management, there were several controversial decisions made in the banking system like bad debt settlement, wrongdoing in lending, the forced acquisition of three weak banks at zero cost, meaning that the SBV converted these banks into 100% state-owned limited banks without paying to their shareholders.

Many officials of the central bank and other credit institutions under Mr. Binh’s watch committed infringements and were punished for criminal charges.

From 2016 to present, Mr. Binh heads the CPV’s Central Economic Commission, which advises the Party leadership on economic issues.

In an announcement by the CPV’s Central Inspection Commission released last week, Mr. Binh’s violations are “serious, triggering public outcry and defaming the party, the State Bank of Vietnam, and himself.”

“Comrade Nguyen Van Binh has accepted responsibility for violations and shortcomings and self-discipline,” said the announcement.

The CPV has four modes of punishment for misconduct by official members namely reprimand, warning, demotion and expulsion.