On what basis does the unit conduct macro-risk supervision in Vietnam of credit institutions and foreign bank branches?
- From which sources does the macro-prudential supervision unit collect documents, information and data of the subject of banking supervision in Vietnam?
- On what issues does the unit conduct macro-risk supervision in Vietnam of credit institutions and foreign bank branches?
- What components will the macro-prudential monitoring performance record include?
From which sources does the macro-prudential supervision unit collect documents, information and data of the subject of banking supervision in Vietnam?
Pursuant to Article 14 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 14. Collection, synthesis and processing of documents, information and data
1. The macro-prudential supervision unit collects documents, information and data of the subject of banking supervision from the following sources:
a) The sources specified in Clause 1, Article 7 of this Circular;
b) Micro-safety supervision report, dossier on handling measures in micro-safety supervision (except for people's credit fund);
c) Based on the requirements of banking supervision, the unit performing macroprudential supervision shall request or submit to the competent authority to request the subject of banking supervision to provide documents, information and data in addition to the documents, information and data specified at Points a and b, Clause 1 of this Article.
2. The unit performing macro safety supervision shall synthesize and process documents, information and data collected from the sources specified in Clause 1 of this Article and organize a database in service of operations. macro safety monitoring.
3. When detecting documents, information and data that are missing, error, wrong or need clarification at the request of macro-prudential supervision, the macro-prudential monitoring unit shall coordinate with the unit. micro-safety supervision is requested by the supervised subject to report and explain."
Accordingly, the macro-prudential supervision unit collects documents, information and data of the subject of banking supervision in accordance with the above regulations.
On what basis does the unit conduct macro-risk supervision in Vietnam of credit institutions and foreign bank branches?
On what issues does the unit conduct macro-risk supervision in Vietnam of credit institutions and foreign bank branches?
Pursuant to Article 15 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 15. Contents of macro-prudential supervision of the system of credit institutions and foreign bank branches
The macro-prudential monitoring unit monitors risks through one or some or all of the following contents:
1. Analyze and assess the level of financial soundness in order to detect risks affecting system safety, including:
a) Analyze and comment on the situation of equity, capital adequacy, capital mobilization and use;
b) Analysis and comment on the liquidity situation:
c) Analysis and assessment of bad debts, asset quality;
d) Analysis and comments on interbank activities;
dd) Analyze and comment on business results; accrued interest.
The unit performing macro security monitoring uses changing thresholds suitable to the characteristics of the macro security monitoring object to assess risks affecting system safety. Chief Inspector, bank supervisor shall decide the thresholds for change of the above items.
2. Analysis and assessment of macroeconomic developments, impacts of other sectors in the economy that are likely to affect the stability of the system of credit institutions and foreign bank branches .
3. Annual or extraordinary endurance test at the request of the Governor of the State Bank, including the following minimum contents:
a) Test the tolerance to credit risk through analysis and forecast of bad debt developments according to macroeconomic scenarios, the impact of assumptions about debt grouping, assumptions about customers major insolvency;
b) Test the tolerance to market risks through analyzing the impact of exchange rate and interest rate fluctuations on the safety and soundness of the system, group of credit institutions, foreign bank branches;
c) Endurance test for interbank contagion risk;
d) Test the tolerance to liquidity risk through liquidity analysis in case of mass withdrawal.
4. In case of necessity or at the request of the Governor of the State Bank, the macro-prudential monitoring unit shall analyze and comment on the possibility of a banking system crisis and take measures. cope with.
5. For groups of credit institutions and foreign bank branches of systemic importance, the unit implementing macroprudential supervision shall monitor at least the contents specified in Clause 1 of this Article. and perform stress tests on a 6-monthly or irregular basis when a systematic risk assessment arises at the request of the Governor of the State Bank.
The unit that performs macroprudential supervision is based on the criteria of scale, interdependence, and interchangeability to compile a list of credit institutions and foreign bank branches of relative importance. submitted to the Governor of the State Bank for promulgation before March 31 every year.
6. For groups of people's credit funds and microfinance institutions, the unit performing macroprudential supervision shall perform at least the contents specified in Clause 1 of this Article.
7. The unit performing the macro safety supervision shall decide or submit to the competent authority for decision other monitoring contents suitable to the unit's needs and resources.”
Accordingly, the macro-monitoring unit monitors the risks of credit institutions and foreign bank branches through the contents specified above.
What components will the macro-prudential monitoring performance record include?
Pursuant to Article 17 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 17. Macroprudential monitoring records
Macroprudential monitoring records include macroprudential monitoring reports (periodical and ad hoc) and records of handling measures in macroprudential monitoring.”
Accordingly, macroprudential monitoring records will include the types of documents specified above.
Circular 08/2022/TT-NHNN will take effect from September 1, 2022.
LawNet
