Vietnam: What is the basis of micro-prudential supervision reports? What is the time limit for completing periodic micro-prudential supervision reports?
What is the basis of micro-prudential supervision reports in Vietnam?
Pursuant to Clause 1, Article 12 of Circular 08/2022/TT-NHNN stipulates as follows:
“Article 12. Prepare reports on micro-prudential supervision and proposing and performing remedial measures
1. Based on the results of compliance and risk supervision as prescribed in Section 2 of this Chapter and the current legal regulations, the micro-prudential supervision unit conducts:
a) Make irregular or periodical micro-prudential supervision reports as prescribed in Clauses 2 and 3 of this Article;
b) Propose and implement handling measures specified in Chapter V of this Circular (if necessary).”
Accordingly, the preparation of micro-prudential supervision reports will be based on compliance supervision, risk supervision and current regulations.
Micro-prudential supervision reports will have two types, including irregular or periodic micro-prudential supervision reports.
Vietnam: What is the basis of micro-prudential supervision reports? What is the time limit for completing periodic micro-prudential supervision reports?
What is the principle of preparing micro-prudential supervision reports in Vietnam?
Pursuant to Clause 2, Article 12 of Circular 08/2022/TT-NHNN stipulating the principles of making, approving and sending unexpected micro-prudential supervision reports as follows:
“Article 12. Preparing reports on micro-prudential supervision and proposing and taking remedial measures
…
2. Principles of preparing, approving and sending unexpected micro-prudential supervision reports:
a) An irregular micro-prudential supervision report must be prepared when the micro-prudential supervision unit detects violations, risks of law violations, risks affecting the prudential of operation; actions of the subject of banking supervision or at the request of a competent authority;
b) The approval and sending of unexpected micro-prudential supervision reports are as follows:
(1) The unscheduled micro-prudential supervision report must be approved by the leader of the micro-prudential supervision unit;
(ii) Based on the recommendations in the unscheduled micro-prudential supervision report and the authority to handle the recommendations as prescribed by law, the unscheduled micro-prudential supervision report must be sent to the competent authority to consider and decide;
(iii) Unscheduled micro-prudential supervision reports prepared at the request of any competent authority must be sent to that competent authority for consideration and handling.”
Accordingly, the preparation, approval and sending of unexpected micro-prudential supervision reports are carried out according to the principles specified above.
What is the time limit for completing periodic micro-prudential supervision reports in Vietnam?
Pursuant to Clause 3, Article 12 of Circular 08/2022/TT-NHNN stipulates as follows:
“Article 12. Preparing reports on micro-prudential supervision and proposing and taking remedial measures
…
3. Principles of preparing, approving and sending periodic micro-prudential supervision reports:
a) The micro-prudential supervision report for the first 6 months of the year must be completed before August 31 of the year. The annual micro-prudential supervision report is completed by April 15 of the following year;
b) The micro-prudential supervision report is prepared according to Appendix II issued with this Circular for the subject of banking supervision being credit institutions, foreign bank branches or according to Appendix III issued together with this Circular. according to this Circular for subjects subject to banking supervision who are branches of the same credit institution in the locality;
c) The periodic approval and submission of micro-prudential supervision reports shall be carried out as follows:
(i) For the unit performing micro-prudential supervision under the organizational structure of the State Bank's branch, the 6-monthly and yearly micro-prudential supervision report must be approved by the leader of the implementing unit. micro-prudential supervision and must be sent to the State Bank's branch for reporting;
(ii) For the unit performing micro-prudential supervision under the organizational structure of the Banking Inspection and Supervision Department under the State Bank of Vietnam, Hanoi branch or Ho Chi Minh city branch, report micro-prudential supervision every 6 months and years must be approved by the leader of the unit implementing micro-prudential supervision and must be sent to the leader of inspection and supervision of the State Bank's branch and the bank's leader State branch to report;
(iii) For the unit performing micro-prudential supervision under the organizational structure of the Banking Inspection and Supervision Agency, the 6-monthly and yearly micro-prudential supervision report must be approved by the Management Board. the unit performs micro-prudential supervision and is sent to the Leaders of the Banking Inspection and Supervision Agency, the State Bank's Leaders for reporting;
(iv) If the micro-prudential supervision report recommends handling measures against the competent authority as prescribed by law, the micro-prudential supervision report must be submitted to that competent authority for consideration and decision.”
Thus, the preparation, approval and submission of prudential supervision reports Periodic umbrellas will be made according to the principles specified above.
Accordingly, the micro-prudential supervision report for the first 6 months of the year must be completed before August 31 of the year. As for the annual micro-prudential supervision report, it must be completed before April 15 of the following year.
Circular 08/2022/TT-NHNN will take effect from September 1, 2022.
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