From July 1, 2024, what are the duties and powers of the Special Control Board regarding credit institutions under special control in Vietnam?

From July 1, 2024, what are the duties and authority of the Special Control Committee regarding the specially controlled credit institution in Vietnam?

From July 1, 2024, what are the duties and powers of the special control board with respect to the credit institution placed under special control in Vietnam?

Based on Clause 1, Article 11 of Circular 39/2024/TT-NHNN which regulates the duties and powers of the special control board with respect to the credit institution placed under special control in Vietnam:

The special control board performs the duties and powers prescribed in Article 164 of Law on Credit Institutions 2024. The special control board performs its duties and powers through one or several of the following control activities:

(1) Request the credit institution placed under special control to provide complete, accurate, and prompt information, documents, and records related to the activities of the credit institution placed under special control, including the following information, documents, and records:

- The current state of organization, personnel, management, operations, information technology systems, and internal control systems;

- The current state of banking operations, other business activities, including cumulative profit and loss of the credit institution; the ability to meet debt obligations as they come due;

- The current state of assets, collateral assets, including specific reports on bad debts, difficult-to-collect receivables, potentially restructured debts that may become bad debts, bad debts sold to Vietnam Asset Management Company Limited (VAMC) but not yet settled, accrued interest receivable as per legal regulations but not yet written off;

- List of customers (excluding credit institutions, branches of foreign banks) receiving credit; list of organizations, individuals depositing money; list of other creditors;

- Other information serving the tasks of the special control board.

(2) Request the credit institution placed under special control to inventory cash and cash equivalents across the entire system according to the principle of cross-checking and report results within 05 days from the date of completion of the inventory;

(3) Organize the supervision of the inventory process specified in point b of this clause in accordance with the actual state and scale of the credit institution placed under special control's operations;

(4) During the period when there is no restructuring plan or when the restructuring plan of the credit institution placed under special control has not yet been approved by the competent authority, based on the information, documents, records provided by the credit institution placed under special control as specified in (1), (2) or information from independent audit reports, inspection conclusions, and other information sources, the special control board evaluates the actual state of operations of the credit institution placed under special control to proactively implement or report to the Governor of the State Bank (through the Banking Inspection and Supervision Agency, for special control boards of credit institution placed under special controls as specified in Clause 1, Article 3 of Circular 39/2024/TT-NHNN) or the Director of the State Bank branch (for special control boards of credit institution placed under special controls as specified in Clause 2, Article 3 of Circular 39/2024/TT-NHNN) to apply measures suitable to the actual state of the credit institution placed under special control;

(5) Grant prior approval before the credit institution placed under special control executes certain transactions, activities in accordance with the Special Control Decision and other documents of the State Bank;

(6) Request the credit institution placed under special control to report operational results according to content and frequency suitable to the actual state of the credit institution placed under special control;

(7) Decide the attendance at meetings of the Board of Directors, Members' Council, or Supervisory Board of the credit institution placed under special control and provide opinions on matters related to the duties and powers of the special control board during those meetings;

(8) Direct, inspect, supervise, and control the activities of the credit institution placed under special control to prevent and stop the concealment, dispersion, pledging, mortgaging, transfer of assets, and other acts that may cause damage to the credit institution placed under special control;

(9) Periodically as stated in the Special Control Decision or when necessary or upon request of the Governor of the State Bank, the Director of the State Bank branch, report to the Governor of the State Bank (through the Banking Inspection and Supervision Agency, for special control boards of credit institution placed under special controls as specified in Clause 1, Article 3 of Circular 39/2024/TT-NHNN) or the Director of the State Bank branch (for special control boards of credit institution placed under special controls as specified in Clause 2, Article 3 of Circular 39/2024/TT-NHNN) about the management, operations, business, investments, finances, liquidity, other issues (if any) of the credit institution placed under special control and propose and suggest handling measures (if any); results, difficulties, and obstacles in the execution of the approved restructuring plan and propose and suggest handling measures (if any);

(10) Promptly report to the Governor of the State Bank (through the Banking Inspection and Supervision Agency, for special control boards of credit institution placed under special controls as specified in Clause 1, Article 3 of Circular 39/2024/TT-NHNN) or the Director of the State Bank branch (for special control boards of credit institution placed under special controls as specified in Clause 2, Article 3 of Circular 39/2024/TT-NHNN) any unusual developments in operations, potential risks, safety hazards, and legal violations of the credit institution placed under special control; difficulties and problems arising during the special control of the credit institution and propose and suggest handling measures;

(11) Promptly notify the credit institution placed under special control of information and directives from the competent authorities related to the activities and restructuring plan of the credit institution placed under special control;

(12) Other tasks as prescribed by the Law on Credit Institutions or as assigned by the Governor of the State Bank, the Director of the State Bank branch.

From July 1, 2024, what are the duties and powers of the Special Control Board with respect to the specially controlled credit institution?

From July 1, 2024, what are the duties and powers of the special control board with respect to the credit institution placed under special control in Vietnam? (Internet image)

Is the Head of the special control board allowed to sign documents on behalf of the special control board in Vietnam?

According to Clause 3, Article 12 of Circular 39/2024/TT-NHNN which regulates the rights and duties of the Head of the special control board as follows:

Rights and duties of the Head of the special control board

...

3. On behalf of the special control board, sign documents within the authority of the special control board.

Thus, the Head of the special control board is permitted to sign documents on behalf of the special control board.

What are the contents of the special control notice for credit institutions in Vietnam?

According to Clause 1, Article 6 of Circular 39/2024/TT-NHNN which regulates the contents of the special control notice, including one or several of the following:

(1) Special Control Decision;

(2) Changes to the form of special control;

(3) Extension or termination of special control;

(4) Documents from the competent authority approving the restructuring plan;

(5) Other content.

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