New regulations on remedial measures in banking supervision in Vietnam

New regulations on remedial measures in banking supervision in Vietnam (Source: internet)

Specifically, the remedial measures in banking supervision according to the provisions of Circular 08/2022/TT-NHNN are as follows:

- Based on the results of banking supervision, the unit performing banking supervision shall issue warnings and recommendations to the subjects of banking supervision;

Administrative penalties will be imposed in accordance with the provisions of law (if any) based on the safety, and legal violations of the subjects of banking supervision.

Submit to the Governor of the State Bank of Vietnam or the Director of the State Bank of Vietnam's competent branch:

+ Apply remedial measures according to regulations on remedial measures in banking supervision in Article 25 of Decree 26/2014/ND-CP;

+ Apply the form of enhanced supervision to the subjects of banking supervision;

+ Propose inspection and examination of banking supervision subjects when signs of law violations, signs of risk or unsafety in operations are detected;

+ Amend, supplement, and replace legal documents on banking currency (if any).

- In case of necessity, in order to fully assess the operational status of the subject of banking supervision:

The unit performing banking supervision shall submit a request to the Chief Inspector, bank supervisor to request (excluding branches of credit institutions) to hire an independent auditing organization to audit one, several, or all content operating in accordance with the law.

(Currently, in Article 17 of Circular 08/2017/TT-NHNN (amended in Clause 1, Article 1 of Circular 04/2018/TT-NHNN) the remedial measures in banking supervision are as follows:

- Recommendations and warnings.

- Administrative penalties prescribed by the laws in Vietnam.

- Early intervention action.

- Other banking supervisory actions that are suggested to competent authorities in accordance with the laws in Vietnam.)

See more at Circular 08/2022/TT-NHNN effective from September 1, 2022.

Quoc Dat

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