The State Bank of Vietnam (SBV) issued Circular No. 10/2012/TT-NHNN on April 16 stipulating post-supervision processing for credit institutions and foreign bank branches operating in Vietnam.
The Circular governs credit institutions, foreign bank branches operating in Vietnam and organizations and individuals involved in the post- supervision processing for credit institutions and foreign bank branches.
The post- supervision processing for credit institutions and foreign bank branches includes the following tasks: processing the implementation of supervisory conclusions ; processing of administrative sanctions imposed on the violating credit institutions and foreign bank branches; and processing of the monitoring of credit institutions and foreign bank branches. Special control imposed on credit institutions, revoking of licenses of credit institutions and foreign bank branches, and freezing of capital resources and assets of foreign bank branches should comply with SBV regulations and other relevant legal texts.
The Circular also specifies the forms and methods of processing as follows: publicization of violations, warning of violations and imposing of administrative sanctions, and making decision to force credit institutions and foreign bank branches to take one or several redressing measures; The measures in the Circular (Item 2, Article 6) are based on the measures specified in the Law on the SBV, the Law on Credit Institutions, and the Law on Inspection of the existing legal documents. In addition, for joint-venture banks, wholly foreign-owned banks, and foreign bank branches, the Financial Supervision Agency shall advise the SBV Governor to make decision on providing information to their holding banks or their original central banks or financial supervision agencies in line with law.
In terms of the authority of post-supervision processing, the Circular stipulates the responsibilities of the SBV relevant entities; the Chief Inspector of the Financial Supervision Agency, and directors and chief inspectors of SBV branches in provinces and the cities directly under the Central Government.
The Circular will take effect on May 30, 2012.