Is it mandatory to notify in writing before conducting direct supervision in banking supervision in Vietnam from September 1, 2022?
On what basis to make macro safety monitoring reports and propose and implement remedial measures?
Pursuant to Article 16 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 16. Making macro safety monitoring reports and proposing and taking remedial measures
1. On the basis of the results of risk monitoring as prescribed in Section 2 of this Chapter and the current legal regulations, the macroprudential monitoring unit conducts:
a) Prepare irregular or periodical macro-prudential monitoring reports as prescribed in Clauses 2 and 3 of this Article according to Appendix IV issued with this Circular;
b) Propose the unit performing micro-prudential supervision to study and consider applying the handling measures specified in Chapter V of this Circular to the subject of banking supervision (if necessary).
2. Principles of making and sending unexpected macro safety monitoring reports:
a) An extraordinary macroprudential supervision report must be prepared when the macroprudential monitoring unit detects risks that affect the safety or threaten to cause a banking crisis of the system. system, group of credit institutions, foreign bank branches or at the request of the Governor of the State Bank;
b) The ad hoc macroprudential monitoring report is approved and sent to the competent authority on the following principles:
(i) The ad hoc macroprudential monitoring report must be approved by the leader of the macroprudential monitoring unit;
(ii) The unexpected macroprudential monitoring report prepared at the request of the Governor must be sent to the Governor of the State Bank for consideration and handling;
(iii) Based on the recommendations in the ad hoc macroprudential monitoring report and the authority to handle the recommendations as prescribed by law, the ad hoc macroprudential supervision report must be sent to the competent authority. right to consider and decide.
3. Principles of making and sending periodic macro-prudential monitoring reports:
a) The macroprudential monitoring report for the first 6 months of the year must be completed before August 31 of the year. The annual macroprudential monitoring report is completed by April 15 of the following year;
b) Periodic macroprudential monitoring reports are approved and sent to competent authorities on the following principles:
(i) The macroprudential supervision report is approved by the leader of the macroprudential monitoring unit and sent to the Leader of the Banking Inspection and Supervision Agency and the State Bank's Board of Directors to report;
(ii) In case the macroprudential monitoring report recommends handling measures against the competent authority as prescribed by law, the macroprudential monitoring report must be submitted to that competent authority for review. consider and decide.”
Accordingly, the preparation of macro-prudential supervision reports and proposing and implementing handling measures are carried out on the basis of the results of risk monitoring for the system of credit institutions and bank branches. foreign.
Is it mandatory to notify in writing before conducting direct supervision in banking supervision in Vietnam from September 1, 2022?
When is a written explanation required in banking supervision in Vietnam?
Pursuant to Article 19 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 19. Request for written explanation
1. In case it is discovered that documents, information, data are missing, error, incorrect or need to be clarified at the request of micro-safety supervision or problems related to inadequate observance of regulations. regulations, directions, requirements of competent state agencies or related to the risks of the subject of banking supervision, the unit performing banking supervision requests or submits to the Chief Inspector, supervisor The bank (for the unit implementing macroprudential supervision) requires the subject of banking supervision to give an explanation.
2. Based on the time limit for explanation specified in the written request for explanation, the subject of banking supervision must provide a written explanation, including at least the following contents:
a) Explanatory content according to each specific request, including analysis of the current situation and causes;
b) Proposing corrective and remedial measures (including implementation roadmap) in case the banking supervision unit requests.”
Accordingly, the request for written explanations for banking supervision activities will be made in accordance with the above provisions.
Time limit for notice when working directly in banking supervision in Vietnam?
Pursuant to Article 20 of Circular 08/2022/TT-NHNN stipulating as follows:
“Article 20. Direct work
1. In case of necessity, when detecting documents, information, data that are missing, error, wrong or need to be clarified at the request of micro-safety supervision or issues related to compliance inadequate legal regulations, directions, requirements of competent state agencies or related to risks of the subject of banking supervision, the unit implementing banking supervision decided or submitted to Chanh Thanh Banking inspection and supervision (for units implementing macro-prudential supervision) decide to set up a working group, content of working directly with the subjects of banking supervision.
2. Before working directly, the unit performing banking supervision must notify in writing the subject of banking supervision at least 03 working days in advance; The written notice must clearly state the composition of the working group, content, time and place of work.
3. Results of working directly with the subject of banking supervision must be recorded in writing according to Appendix I issued with this Circular and signed for certification between the representative of the working group and the subject of banking supervision. .”
Thus, the unit performing banking supervision in Vietnam must send a written notice to the subject of banking supervision within at least 03 working days before conducting direct work.
Working directly in banking supervision in Vietnam activities will be carried out in accordance with the above provisions.
Circular 08/2022/TT-NHNN will take effect from September 1, 2022.
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