Cases of wholly State-owned credit institutions given “C” in Vietnam

According to Point d.2. Clause 3 Article 1 of the Circular No. 114/2020/TT-BTC of the Ministry of Finance of Vietnam, a credit institution is given “C” rating if it has encountered one of the following circumstances:

- It fails to submit supervision reports, reports on credit institution rating, financial statements and other reports, or has submitted invalid or late reports and has received more than three written reminders from the owner’s representative agency or the financial authority in the evaluation year.

- It has incurred fines in the evaluation year for the following violations:

+ The violations in monetary and banking sector, including: fraudulent or forging acts; impersonation; transferring, lending or leasing the license; sabotaging or destroying Vietnamese money; illegal operations; provision of untruthful information; stealing information; stealing data according to the Government's regulations on penalties for administrative violation in monetary and banking sector;

+ Tax evasion according to the Government’s regulations on penalties for administrative violations in the fields of taxation and invoices;

+ Other violations for each of which the fine incurred is the maximum fine of the fine bracket;

+ It is forced to implement the penalty imposition decision.

- The number of branches (including headquarters address) incurring penalties shall not exceed 20% of total branches of the credit institution.

- In the valuation year, one or some executives of the credit institution (Chairperson and members of the Board of Members, Chairperson and members of the Board of Directors, General Director, Deputy General Director, Chief Accountant) violate the law during their performance of tasks at the credit institution to the extend that they are liable to criminal prosecution.

More details at the Circular No. 114/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from February 15, 2021.

Le Thanh

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