Vietnam: Banking supervision shall be carried out on a regular basis

Specifically, according to Article 51 of the Law on the State Bank of Vietnam 2010 and Article 4 of Decree No. 26/2014/NĐ-CP of Vietnam’s Government, principles of banking inspection and supervision are as follows:

1. Centralization and uniformity shall be ensured in providing instructions and performing tasks at the central level through the local level.

2. Laws must be observed; accuracy, objectivity, truthfulness, openness, democracy, promptness shall be ensured; there shall be no overlapping issues in terms of the scope, targets, contents and duration of inspection among authorities charged with inspection; activities of organizations and individuals that are inspected and supervised entities must not be obstructed.

3. A banking inspection shall be carried out by an inspectorate or banking inspector.

4. Banking supervision shall be carried out on a regular basis.

5. Inspection and supervision of compliance with policies and laws must be carried out simultaneously with the inspection and supervision of risks in operations of inspected and supervised entities; banking inspection must be closely linked with banking supervision.

6. Inspection and supervision of operations of credit institutions shall be carried out.

7. Regulations of the Law on the State Bank and other relevant regulations of law shall be complied with; in the cases where banking inspection and supervision regulations of the Law on the State Bank are different from those of other laws, the regulations of the Law on the Sate Bank shall prevail.

8. The Governor of the State Bank shall specify procedures for carrying out banking inspection and banking supervision.

9. Other rules as prescribed by the law on inspection.

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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