PROCEDURES FOR CARRYING OUT BANKING SUPERVISION
On August 01, 2017, the State Bank of Vietnam issued the Circular No. 08/2017/TT-NHNN on procedures for carrying out banking supervision in order to prevent, detect and promptly handle the risks that threaten operational safety of banks, violate regulations on operational safety of banks.
Contents of banking supervision includes collection, consolidation and handling of documents, information and data of the supervised entity; consider and monitor the compliance with regulations on prudential ratios and limits for operational safety of banks and other relevant regulations of law; the implementation of inspection conclusions, recommendations and warnings about banking supervision; regularly analyze and assess financial condition, operation, management and level of risks of credit institutions and foreign banks’ branches and entire system of credit institutions and foreign banks' branches; rank credit institutions and foreign banks’ branches; detect
and warn about factors, negative changes, risks that threaten operational safety of each credit institution and branch of a foreign bank and system of credit institutions; possible violations against the finance and banking laws; request and propose measures for preventing and handling the supervised entities’ risks and violations against law.
Procedures for carrying out banking supervision includes 4 steps: collect, consolidate, handle and store documents, information and data; analyze and assess the supervised entities by carrying out micro-prudential supervision and macro-prudential supervision as; propose interfering and adjusting actions, including remedial measures for banking supervision; carry out post-inspection supervision after the conclusion on inspection of the supervised entity is received from the unit responsible for banking inspection.
This Circular takes effect on December 01, 2017.
