Contents of banking supervision according to the Law on the State Bank of Vietnam 2010

Thu Hien

15:16, 12/07/2014

Banking supervision means activities carried out by the State Bank to collect, synthesize and analyze information on supervised subjects through a information and reporting system so as to promptly prevent, detect and handle risks to the safety of banking operations, violations of regulations on safety of banking operations and other relevant laws.

According to Article 58 of the Law on the State Bank of Vietnam 2010 and Clause 1 Article 23 of Decree No. 26/2014/NĐ-CP of Vietnam’s Government, contents of banking supervision include:

- Collect, consolidate and process documents, information and data of the supervised entity on request; combine supervision of safety of the whole system of credit institutions with the supervision of safety of each credit institution or branch of a foreign bank;

- Consider and monitor the compliance with regulations on safety of banking operations and other relevant regulations of law; compliance with conclusions, proposals and decisions on inspection and recommendations and warning about banking supervision;

- Regularly analyze and assess financial condition, operation, management and level of risks of credit institutions and foreign banks’ branches, systemic risks; annually rank credit institutions by their safety level;

- Detect and warn about factors, negative changes, risks that threaten operational safety of each credit institution and foreign bank’s branch and system of credit institutions; possible violations against the finance and banking laws;

- Request and propose measures for preventing and handling the supervised entities' risks and violations of law as prescribed by law.

View more at the Law on the State Bank of Vietnam 2010 effective from January 01, 2011 and Decree No. 26/2014/NĐ-CP of Vietnam’s Government effective from June 01, 2014.

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