Duties and powers of the Banking Inspection and Supervision Agency under the State Bank of Vietnam

Duties and powers of the Banking Inspection and Supervision Agency under the State Bank of Vietnam (Image from the internet)

On November 06, 2024, the Prime Minister of the Government of Vietnam issued Decision 18/2024/QD-TTg stipulating the functions, duties, powers, and organization structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam.

Duties and powers of the Banking Inspection and Supervision Agency under the State Bank of Vietnam

- Propose to the Governor of the State Bank to submit to the Government of Vietnam, the Prime Minister of Vietnam for review and decision:

+ Draft decrees of the Government of Vietnam, draft decisions of the Prime Minister of Vietnam regarding the organization and operation of credit institutions, branches of foreign banks, representative offices in Vietnam of foreign credit institutions, other foreign entities with banking activities, banking inspection and supervision, and deposit insurance;

+ Strategies, programs, proposals, important projects on developing the system of credit institutions, branches of foreign banks, representative offices in Vietnam of foreign credit institutions, other foreign entities with banking activities, banking inspection and supervision, and deposit insurance.

- Propose to the Governor of the State Bank for decision, approval, or issuance:

+ Circulars regulating the organization and operation, safety of banking activities of credit institutions, branches of foreign banks; regulations on establishment, reorganization, dissolution, bankruptcy, liquidation regarding credit institutions, branches of foreign banks, representative offices in Vietnam of foreign credit institutions, other foreign entities with banking activities; regulations on banking inspection, supervision, deposit insurance;

+ Grant, amend, supplement, revoke licenses for establishment and operation of credit institutions, licenses for establishment of branches of foreign banks, licenses for establishment of representative offices in Vietnam of foreign credit institutions, other foreign entities with banking activities, and other types of banking operation licenses as assigned by the Governor of the State Bank;

+ Grant, re-grant, modify content and revoke licenses for credit information provision services (certificate of qualification for credit information provision services) for organizations;

+ Grant, revoke Registration Certificates for microfinance programs, projects in accordance with the law and as assigned by the Governor of the State Bank;

+ Approve the purchase, sale, division, separation, merger, consolidation, change of legal form, dissolution of credit institutions, branches of foreign banks; approve the list of candidates for election, appointment as members of the Member Council, members of the Board of Directors, members of the Supervisory Board, and the General Director (Director) of credit institutions, except personnel of commercial banks with 100% state capital, personnel appointed or recommended by the state capital owner at joint-stock commercial banks where the state holds over 50% of charter capital; approve candidates for the position of General Director (Director) of foreign bank branches; approve the establishment, dissolution, cessation of activities of branches, representative offices, public service providers in Vietnam of credit institutions; approve the establishment, conversion of the legal form of commercial presence abroad of credit institutions, including branches, representative offices, and other forms of commercial presence abroad; approve the establishment, acquisition of subsidiary companies, affiliate companies of credit institutions; approve the contribution of capital, purchase of shares of credit institutions; approve other governance, organizational, financial, and operational matters that legally require State Bank approval or permission as assigned by the Governor of the State Bank;

+ Address issues related to the organization, governance, and management of credit institutions, branches of foreign banks to ensure these entities operate healthily, safely, and conform to laws as assigned by the Governor of the State Bank;

+ Implement certain aspects of the rights and responsibilities of representing state capital ownership at credit institutions, financial institutions, and enterprises managed by the State Bank as stipulated by law and assigned by the Governor of the State Bank;

+ Develop and organize, monitor the implementation of plans, options to reinforce, rectify, remediate, restructure, and put under special control of credit institutions, branches of foreign banks as assigned by the Governor of the State Bank.

- Execute the responsibilities and powers specified above under the delegation and authorization of the Governor of the State Bank.

- Disseminate, propagate, and organize the enforcement of legislative documents, policies, strategies, programs, projects, plans specified above once issued or approved by competent state authorities.

- Develop the annual inspection plan of the Banking Inspection and Supervision sector to propose to the Governor of the State Bank for approval; organize the implementation of the inspection plan of the Banking Inspection and Supervision sector; guide, monitor, urge, check the implementation of the inspection plan by the Banking Inspection and Supervision affiliated with the State Bank branches (hereinafter referred to as the Banking Inspection and Supervision of the State Bank branch).

- Conduct administrative inspections, banking inspections, anti-money laundering inspections, deposit insurance inspections, and inspections in other areas within the state management scope of the State Bank concerning banking inspection entities following legal regulations on the organization and operation of the Banking Inspection and Supervision sector and as assigned by the Governor of the State Bank; inspect other cases assigned by the Governor of the State Bank.

- Re-inspect cases already concluded by the Department of Banking Inspection and Supervision, Banking Inspection, and Supervision of the State Bank branches but found to have legal violations through inspections, complaints, denunciations, recommendations, or reflections.

- Monitor, urge, and inspect the implementation of conclusions, recommendations, and decisions on inspection supervision by the Banking Inspection and Supervision Agency and by the Governor of the State Bank.

- Check the accuracy and legality of inspection conclusions by the Department of Banking Inspection and Supervision, Banking Inspection, and Supervision of the State Bank branches and post-inspection handling decisions by the Director of the State Bank branch, Chairman of the provincial People's Committee over matters in the state management scope of the State Bank when necessary.

- Supervise banking subjects under legal regulations regarding the organization and operation of the Banking Inspection and Supervision sector and as assigned by the Governor of the State Bank.

- Conduct inspections of banking inspection subjects, banking supervision subjects as per legal regulations and assignment by the Governor of the State Bank.

- Apply measures of handling authority or suggest, propose to authorities, organizations, and individuals to execute safety assurance measures and handle violations of banking inspection entities, banking supervision subjects following legal regulations.

- Assist the Governor of the State Bank in state management regarding public reception activities, complaint handling, and denunciations; perform duties and rights in public reception, complaint, and denunciation handling following legal regulations and as assigned by the Governor of the State Bank.

- Assist the Governor of the State Bank in state management regarding anti-corruption and negative phenomena; perform duties and rights in anti-corruption and negative phenomena according to the law and as assigned by the Governor of the State Bank.

- Advise and assist the Governor of the State Bank in state management of deposit insurance.

- Direct, inspect, and organize the implementation of inspection and supervision tasks; guide banking inspection and supervision operations for the Banking Inspection and Supervision of the State Bank branches. Guide and inspect units in the banking sector in implementing legal provisions on banking inspection, supervision, public reception, complaints, denunciations, anti-corruption, negative phenomena within the state management scope of the State Bank.

- Require banking inspection subjects, banking supervision subjects, and relevant authorities, organizations, and individuals to report and provide information and documents serving the banking inspection, supervision tasks.

- Summarize and learn from experience in inspection and supervision tasks within the state management scope of the State Bank.

- Gather and report results of inspection activities, supervision, public reception, complaint resolution, denunciation handling, anti-corruption, negative phenomena within the state management scope of the State Bank.

- Execute certain tasks and powers regarding some associations and non-governmental organizations within the state management scope of the State Bank as stipulated by law and delegated and authorized by the Governor of the State Bank.

- Organize research and apply scientific and technological advancements in banking management, inspection, and supervision activities; modernize the technical infrastructure of the banking inspection and supervision system; organize professional training in inspection and supervision for banking inspectors and other officials of the Banking Inspection and Supervision sector; train professional skills for officials and public employees involved in banking inspection, supervision, public reception, complaint resolution, denunciation handling, anti-corruption, negative phenomena.

- Engage in international cooperation in the field of banking management, inspection, and supervision.

- Implement administrative reform in the activities of the Banking Inspection and Supervision Agency per the administrative reform plan of the State Bank.

- Manage the organizational apparatus, staffing; execute salary policies and reward policies, benefit schemes, recruitment, utilization, appointment, dismissal, retirement, resignation, commendation, and discipline for officials and employees of the Banking Inspection and Supervision Agency as delegated by the Governor of the State Bank; provide input on commendations for organizations and individuals in the Banking sector as stipulated by law.

- Perform other duties and powers per legal regulations and assignments by the Governor of the State Bank.

See further details in Decision 18/2024/QD-TTg, effective from November 05, 2025.

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