Vietnam: Tasks involved in the process for oversight and supervision of important payment systems

According to Circular No. 20/2018/TT-NHNN of the State Bank of Vietnam, the tasks involved in the process for oversight and supervision of important payment systems include:

1. Keeping track of the performance of important payment systems through:

* Collecting materials, data and information from the following sources:

- Reports prescribed by existing laws on the reporting and statistical regime applied to credit institutions and foreign bank branches;

- Data about the performance of the National Interbank Payment System, which are collected and mined from relevant information systems of the State Bank;

- Other reports of an operating organization;

- Assessment reports on the performance of the National Interbank Payment System, which are made by the supervising unit once every 3 years;

- Tools and software designed for oversight and supervision of important payment systems of the State Bank;

- Materials, information and data collected through on-the-spot checks and inspections of operating organizations;

- Information relating to important payment systems which are published on mass media;

- Information provided by competent regulatory authorities;

- Feedbacks received from members participating in important payment systems and payment service clients;

- Other information sources serving the needs of oversight and supervision of important payment systems;

* Comparing, collating and checking the accuracy of data:

- Comparing and collating collected materials, information and data with historical data in order to detect any abnormalities;

- Comparing and collating materials, information and data collected from different sources as per point a of this clause in order to ensure consistency;

- Judging and assessing the rationality of materials, information and data. If any shortcoming, error or inappropriacy is found in materials, information and data, the operating organization shall be requested to make a timely report and re-send correct ones;

* Synthesizing and analyzing materials, information and data collected, compared, collated, checked or inspected as prescribed above.

2. Assessing important payment systems

Based on materials, information and data collected in accordance with the above provisions, the supervising unit shall carry out the assessment of each important payment system and prepare reports for submission to the State Bank's Governor, including:

- Reports on the performance of the National Interbank Payment System, made every quarter, in the first half of the reporting year or every year;

- Reports on the performance of the foreign exchange payment system, the securities payment system and the clearing and switching system for financial transactions, made in the first half of the reporting year or every year;

- Ad-hoc reports on risks and incidents arising from operations of important payment systems.

3. Giving warnings and recommendations

In case where the supervising unit discovers any potential risks posing danger to safety and stability of important payment systems or resulting in the consequence that operating organizations breach legislative regulations relating to important payment systems, the supervising unit shall report to the State Bank's Governor and recommend him to issue a written document stating warnings and recommendations to these operating organizations.

These are the contents specified in Article 5 of Circular No. 20/2018/TT-NHNN of the State Bank of Vietnam, which takes effect from January 01, 2019.

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