Vietnam: What are current banking supervision handling measures?

According to the Decree No. 26/2014/NĐ-CP of Vietnam’s Government, currently, supervised entities include:

- Supervised entities specified in Article 56 of the Law on the State Bank of Vietnam, including the Policy Bank and credit institutions’ subsidiaries;

- Units responsible for submitting reports on finance and banking in accordance with the Law on Prevention of Money Laundering;

- Other entities as prescribed by law.

According to the Decree No. 26/2014/NĐ-CP of Vietnam’s Government, depending on the supervised entity’s level of safety and soundness and severity of its violations of the law, the banking inspection and supervision authority shall impose the following remedial measures:

- Request the Governor of the State Bank or the person authorized by the Governor of the State Bank to impose remedial measures prescribed in Article 59 of the Law on the State Bank of Vietnam.

- Request a competent authority to place a credit institution under special control and impose restructuring measures in accordance with regulations of law.

- Request the supervised entity to submit reports at the request of the capacity of banking inspection and supervision authority.

- Request the Governor of the State Bank or the person authorized by the Governor of the State Bank to decide to establish an inspectorate in order to monitor and supervise the supervised entity.

- Request the Governor of the State Bank or the person authorized by the Governor of the State Bank to terminate violations of the law and operations that threaten the operational safety of the supervised entity.

- Request the Governor of the State Bank or the person authorized by the Governor of the State Bank to impose measures for control of transactions that may pose risks and restrict growth and operations that affect the operational safety of the supervised entity.

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View more details at Decree No. 26/2014/NĐ-CP of Vietnam’s Government, effective from June 01, 2014.

Thu Ba

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