Basis for applying handling measures in banking supervision in Vietnam activities and recommendations and warnings for subjects of banking supervision in Vietnam?
Grounds for applying handling measures in banking supervision in Vietnam?
Pursuant to Article 21 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 21. Handling measures in banking supervision
1. Based on the results of banking supervision, the unit performing banking supervision shall issue warnings and recommendations to the subjects of banking supervision, depending on the level of safety, soundness and violations of the law. of the subject of banking supervision, impose penalties for administrative violations according to the provisions of law (if any); submit to the Governor of the State Bank or the Director of the State Bank branch according to his/her competence:
a) Apply the handling measures specified in Article 25 of the Government's Decree No. 26/2014/ND-CP dated April 7, 2014 (amended and supplemented) regulating the organization and operation of the Government. Banking sector inspection and supervision;
b) Applying the form of enhanced supervision to the subjects of banking supervision;
c) Proposing to conduct inspection and examination of subjects of banking supervision when detecting signs of law violations, signs of risk or unsafety in operation;
d) Amending, supplementing and replacing legal documents on currency and banking (if any).
2. In case of necessity, in order to fully assess the actual status of operation of the subject of banking supervision, the unit performing banking supervision shall submit the Chief Inspector, bank supervision to request the subject of banking supervision ( excluding branches of credit institutions) hires an independent auditing organization to audit one, some or all of the contents operating in accordance with the law.”
Accordingly, based on the results of banking supervision, the banking supervisory unit shall issue warnings and recommendations to the subjects of banking supervision, depending on the level of safety, soundness and violations of the law. of the subject of banking supervision to apply handling measures in banking supervision in Vietnam.
The application of handling measures in banking supervision shall comply with the above provisions.
Basis for applying handling measures in banking supervision in Vietnam activities and recommendations and warnings for subjects of banking supervision in Vietnam?
Based on what content to recommend and warn against the subject of banking supervision in vietnam?
According to Article 22 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 22. Recommendations and warnings for subjects of banking supervision
1. Based on supervision results, the unit performing banking supervision shall decide or submit to the Chief Inspector, the bank supervisor, the Director of the State Bank's branch for consideration and approval of recommendations and warnings for bank supervisor.
2. Recommendations and warnings for subjects of banking supervision shall be based on one or a combination of the following contents:
a) When the supervisory results shown in the form of quantitative indicators of the subject of banking supervision exceed the warning threshold;
b) On the basis of applying the expert method when assessing and analyzing qualitative information reflecting potential risks and risks of legal violations of the subject of banking supervision from the combined supervision results. with inspection conclusions, independent audit conclusions, internal audit conclusions, information from other state management agencies;
c) At the request of the Governor of the State Bank arising from the practice of state management in the field of money and banking.
3. When receiving recommendations and warnings, the subject of banking supervision must promptly report and explain the recommendations and warnings at the request of the banking supervisory unit, including at least Minimizing contents such as actual situation, causes and remedial plan. The deadline for submitting reports and explanations of the subject of banking supervision is specified in the written recommendation and warning sent to the subject of banking supervision. The unit performing banking supervision is responsible for monitoring and urging the implementation of recommendations and warnings of the subject of banking supervision.
4. In case the subject of banking supervision continues to have potential risks and risks of violating the monetary and banking laws after implementing the remedial plan, the banking supervisory unit shall request the issuance of a license. competent to apply handling measures in banking supervision specified in Article 21 of this Circular.”
Accordingly, the recommendations and warnings for the subjects of banking supervision in Vietnam shall comply with the above provisions.
Bank supervision must follow what principle?
Pursuant to Article 4 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 4. Principles of banking supervision Bank supervision shall comply with the following principles:
1. The principles specified in Article 51 of the Law on the State Bank of Vietnam, Article 4 of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government (amended and supplemented regulations on organization functions and activities of the Banking Inspectorate and supervision.
2. Principles of combining compliance monitoring with risk monitoring, micro-safety monitoring with micro-safety monitoring.”
Thus, the banking supervision in Vietnam must ensure that it is carried out according to the above principles.
Circular 08/2022/TT-NHNN will take effect from September 1, 2022.
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