Model of Inspection and supervision agency on banking sector is applied in Vietnam since year 2009 in accordance with Decision No. 83/2009/QD- TTg dated May 27, 2009 of the Prime Minister.
In compliance with regulation of Article 1 Decision No.83, Bank Inspection and Supervision agency is the one under State Bank of Vietnam, realizing functions of administrative inspecting, specialized inspecting and specialized supervision on banking within fields of State management of State Bank of Vietnam; consulting and assisting Governor of State Bank of Vietnam to manage credit institutions, small-scale credit organizations, banking operation of other organizations; anti-money laundering in conformity with applicable laws.
On April 07, 2014, the Government officially issued Decree No. 26/2014/ND-CP regulating organization and operation of Banking Inspection and Supervision. Decision No. 35/2014/QD-TTg instructs realization of Decree 26 and supersedes Decision 83 regulating functions, duties, powers and structure of Bank Inspection and Supervision Agency under State Bank of Vietnam.
On May 17, 2019, the Government issued Decree 43/2019/ND-CP amending and supplementing several articles of Decree No. 26/2014/ND-CP dated April 07, 2014 on organization and action of Banking inspection and supervision agency. It is noticeable that Decree 43 comes into effect since the date of issuance signature.
In compliance with current legal regulations and the ones have been recently adjusted, banking supervision and inspection agency has features and remarks as follows:
I. Current structure of Banking Inspection and Supervision agency
Banking inspection and supervision agency is organized in Vietnam and includes:
- Department of Inspection, supervision on domestic credit organzations (briefly called Department I).
- Department of Inspection and supervision on foreign credit organizations (briefly called Department II).
- Department of Administrative inspection, addressing claim and prevent corruption (briefly called Department III).
- Department of Banking system safety supervision (briefly called Department IV).
- Department of Banking safety policies (Briefly called Department V).
- Department of License management to credit organizations and banking operation (Briefly called Department VI).
- Department of Personnel Organization (Briefly called Department VII).
- Office.
- Bureau of Banking inspection and supervision of Hanoi City (Briefly called Bureau I).
- Bureau of Banking inspection and supervision of Ho Chi Minh City (Briefly called Bureau II).
- Bureau of Anti-money laundering (Briefly called Bureau III).
Agencies under Banking inspection and supervision are organized at office level.
Governor of State Bank of Vietnam regulates functions, duties, power and organization structure of agencies under Banking inspection and supervision agency.
II. Establishment of Banking inspection and supervision agency in central provinces and cities
One of remarkable change in organization structure of Bank inspection and supervision agency from May 15, 2019 is establishment of bank inspection, supervision agency under State Bank of Vietnam, branches in Central provinces and cities nationwide.
In previous time, as regulated in Decree No. 26, Banking inspection and supervision agencies under State Bank of Vietnam, branches in central provinces and cities are established in central provinces and cities where Bureau of Banking inspection and supervision under Banking inspection and supervision department of State Bank of Vietnam does not exist. Bureau of Banking inspection and supervision under Banking inspection and supervision department of State Bank of Vietnam is established in two economic centers of Vietnam: Hanoi and Ho Chi Minh City.
Decree 43 does not clarify explicit intention of Vietnam Governmental management agency on continuity of Bureau of Banking inspection and supervision model of Hanoi City (Bureau I) and Bureau of Banking inspection and supervision model of Ho Chi Minh City (Bureau II). Bureau of Banking inspection and supervision model of Ho Chi Minh City (Bureau II) was set up at the end of year 2014 in parallel with Banking inspection and supervision agencies under State Bank of Vietnam, branches in central provinces and cities.
III. Supplementation, amendment and clarification of several contents on authorization of Banking inspection and supervision agencies
Decree No. 43 promulgates further details on authorization of Bank Inspection and Supervision agency in case State Bank of Vietnam determines to apply premature intervention method in accordance with Article 43, inspection and supervision agency shall supervise implementation of conclusion, recommendation, decision on solution upon inspection; performance of recommendation, warning on banking supervision and correction when being applied premature intervention at credit organizations and foreign bank branches.
Branches of international banks are supplemented in list of annually safety ranking.
Above are some content to note on Decree 43/2019/ND-CP dated 17/5/2019, amendments to the provisions of Decree No. 26/2014/ND-CP dated 07/4/2014 on the organization and operation of the Inspector , banking supervision.
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