Strengthening the Responsibilities of the Banking Inspection and Supervision Authority

Illustration (source internet)

To be specific:, according to the provisions of Article 46 of Circular 31/2012/TT-NHNN, the Banking Inspection and Supervision Agency is responsible for being the focal point for addressing issues during the implementation of this Circular; coordinating with other units in the State Bank to deploy and organize the appraisal of applications for cooperative bank licenses, and making recommendations to the Governor of the State Bank for consideration and decision on the issuance of cooperative bank licenses.

However, the amendment and supplementation clause in Circular 21/2019/TT-NHNN adds responsibilities for the Banking Inspection and Supervision Agency:

- Taking the lead, cooperating with relevant units to conduct inspection and supervision of cooperative bank activities; receiving the capital regulation as stipulated in Clause 1, Article 41 of Circular 31, requesting the cooperative bank to amend and supplement according to the laws if necessary.- Acting as the focal point, cooperating with the State Bank's branches to submit to the Governor of the State Bank requests for cooperative banks to inspect and supervise member people's credit funds as stipulated in Clause 4, Article 44 of Circular 31.- Providing information and data to relevant agencies and units about the activities and compliance with legal regulations related to the activities of the cooperative bank.

Along with that, this new Circular also amends the responsibilities of the units under the State Bank, specifically:

- Units under the State Bank: Monitoring, cooperating with the Banking Inspection and Supervision Agency to manage the activities of cooperative banks within the scope of their functions and powers; Coordinating with the Banking Inspection and Supervision Agency in appraising applications for cooperative bank licenses.- State Bank branches cooperating with the Banking Inspection and Supervision Agency in requesting cooperative banks to comply with the regulations stipulated in Clause 4, Article 44 of Circular 31.

More details can be found in Circular 21/2019/TT-NHNN, effective from January 1, 2020.

Thu Ba

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