New circular to enhance banking supervision

14/08/2017 12:08

The State Bank of Việt Nam (SBV) has issued a new circular on banking supervision to timely prevent and settle risks to banking operations.

 Circular 08/2017/TT-NHNN, which will take effect from December 1, 2017, is also designed to prevent a banking crisis where sudden withdrawal of depositors spreads across the system of credit institutions and can lead to institutions’ bankruptcy.

The circular states that banking inspection and supervision agencies will collect, synthesise and analyse information on supervised credit institutions to promptly prevent, detect and handle risks to banking operations.
 
The agencies will also consider and monitor the observance of regulations on safety of banking operations and other monetary and banking regulations of credit institutions.
The implementation of inspection conclusions, issuing warnings and making recommendations will be also included in the content of supervision.
 
The agencies will also analyse and assess the financial status, operation, governance and risk degree of credit institutions, besides annually ranking the institutions.
 
Further, the circular noted that the banking supervision must comply with current laws and ensure accuracy, objectivity, honesty, publicity and timeliness. It also required not obstructing the normal operation of supervised credit institutions.
 
Source: VNS



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