Organizational structure of non-bank credit institution’s senior management supervision

Organizational structure of non-bank credit institution’s senior management supervision

According to the Circular, the regulation on the organizational structure of a non-bank credit institution’s senior management supervision is as follows: 

- The supervision structure of a non-bank credit institution’s Board of Directors/Council of Members shall have:

+ Risk Management Committee and Human Resource Committee, as specified in the State Bank’s regulations on license issuance, organization and operations of non-bank credit institutions;

+ Other committees (if necessary) with a view to helping the Board of Directors/Council of Members carry out senior management supervision.

- The supervision structure of the Board of Controllers shall comply with regulations of the Law on Credit Institutions and internal regulations of the Board of Controllers.

Senior management supervision for risk management of non-bank credit institution

- The non-bank credit institution’s Board of Directors/Council of Members, on the basis of the Risk Committee’s advice and proposals, shall oversee the Director General (Director):

+ Formulating and organizing implementation of risk management policies;

+ Rectifying problems and limitations in risk management upon request of the State Bank, independent auditing organizations and other functional authorities;

+ Other contents specified by the Board of Directors/Council of Members.

- The non-bank credit institution’s Director General (Director), on the basis of the Risk Committee’s advice and proposals, shall oversee individuals and departments:

+ Establishing procedures for formulation and implementation of the risk management policy;

+ Assessing risk management policies in order to suggest adjustments to the Board of Directors/ Council of Members;

+ Creating and implementing risk limits, proposing risk limit allocation by business and professional activities; implementing handling measures in case of failure to comply with risk limits;

+ Acting as directed by the Board of Directors/Council of Members in rectification of problems and limitations in risk management upon request of the State Bank, independent auditing organizations and other functional authorities;

+ Carrying out self-inspection and self-assessment of risk management and suggesting rectification measures to the Board of Directors/Council of Members.

+ Other contents specified by the non-bank credit institution.

See more details in Circular No. 14/2023/TT-NHNN, effective as of October 1, 2024. 

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