Circular No. 10/2019/TT-NHNN amending and supplementing certain articles of Circular No. 36/2016/TT-NHNN dated December 30, 2016, issued by the Governor of the State Bank of Vietnam on the procedures and formalities for specialized banking inspections.

CIRCULAR

Amending and supplementing certain articles of Circular No. 36/2016/TT-NHNN dated December 30, 2016 issued by the Governor of the State Bank of Vietnam on the procedures and formalities for specialized banking inspections Decision No. 30/2016/ND-CP of the Governor of the State Bank of Vietnam dated December 30, 2016 on the procedures and formalities for specialized banking inspections

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

The Government promulgates this Decision to amend and supplement some articles of Decision No. 31/2007/QĐ-TTg dated March 5, 2007 of the Government on credit for households engaged in production and business activities in difficult areas and Decision No. 92/2009/QĐ-TTg dated July 8, 2009 of the Government on credit for traders operating in trade in difficult areas.

Based on the Inspection Law dated November 15, 2010;

Pursuant to Decree No. 86/2011/NĐ-CP dated September 22, 2011 of the Government detailing and guiding the implementation of certain provisions of the Inspection Law;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of Banking Inspection and Supervision; Decree No. 43/2019/NĐ-CP dated May 17, 2019 of the Government amending and supplementing certain articles of Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of Banking Inspection and Supervision;

Pursuant to Decision No. 20/2019/QĐ-TTg dated June 12, 2019 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam;

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam hereby issues this Circular amending and supplementing certain articles of Circular No. 36/2016/TT-NHNN dated December 30, 2016 issued by the Governor of the State Bank of Vietnam stipulating the procedures and formalities for specialized banking inspections (hereinafter referred to as Circular No. 36/2016/TT-NHNN).

Article 1. Amending and supplementing certain articles of Circular No. 36/2016/TT-NHNN

1. Clause 2, Article 2 shall be amended and supplemented as follows:

"2. The State Bank of Vietnam branch at provincial level and centrally administered city (hereinafter referred to as the State Bank of Vietnam branch)."

2. Point b, Clause 5, Article 3 shall be amended and supplemented as follows:

"b) Banking inspection and supervision bodies under the State Bank of Vietnam branch at provincial level and centrally administered city (hereinafter referred to as Banking inspection and supervision of the State Bank of Vietnam branch)."

3. Article 4 shall be amended and supplemented as follows:

“Article 4. Authority to issue inspection decisions and re-inspection

1. Authority of the Chief Inspector of Banking Inspection and Supervision:

a) Issuing inspection decisions against banking inspection objects within the management scope of the State Bank of Vietnam pursuant to the division of labor by the Governor of the State Bank of Vietnam or upon request of the Governor of the State Bank of Vietnam, including inspections related to anti-corruption work, major and complex specialized inspections, re-inspections, or when deemed necessary;

b) Deciding to inspect when signs of violation of laws by banking inspection objects or signs of risks threatening the safety of operations of credit institutions and foreign bank branches are discovered, and bearing responsibility before the Governor of the State Bank of Vietnam for such decisions;

c) When signs of violation of laws or signs of risks threatening the safety of operations of credit institutions and foreign bank branches are discovered, requiring the Director of the State Bank of Vietnam branch to conduct inspections against banking inspection objects within the management scope of the State Bank of Vietnam branch pursuant to the division of labor by the Governor of the State Bank of Vietnam; in case the Director of the State Bank of Vietnam branch disagrees, having the right to issue inspection decisions, reporting, and bearing responsibility before the Governor of the State Bank of Vietnam for such decisions;

d) Deciding to conduct re-inspections in cases where violations of laws are found in matters concluded by the Chief Inspector of Banking Inspection and Supervision of the State Bank of Vietnam branch; or in cases where violations of laws are found in matters concluded by the Chairman of the People's Committee of the province or the Director of the State Bank of Vietnam branch, when assigned by the Governor of the State Bank of Vietnam.

2. The Director of the Banking Inspection and Supervision Department issues inspection decisions against banking inspection objects assigned to them (except for inspections decided by the Chief Inspector of Banking Inspection and Supervision) according to the annual inspection plan approved by the Governor of the State Bank of Vietnam or upon request of the Chief Inspector of Banking Inspection and Supervision.

3. The Director of the State Bank of Vietnam branch issues inspection decisions against the following objects:

a) Banking inspection objects within the management scope of the State Bank of Vietnam branch when deemed necessary;

b) Banking inspection objects within the responsibility of the Banking Inspection and Supervision Agency, other Banking inspection and supervision of the State Bank of Vietnam branch as directed by the Governor of the State Bank of Vietnam;

c) Banking inspection objects within the responsibility of the Banking inspection and supervision of the State Bank of Vietnam branch upon request of the Chief Inspector of Banking Inspection and Supervision.

4. Authority of the Chief Inspector of Banking Inspection and Supervision of the State Bank of Vietnam branch:

a) Issuing inspection decisions against banking inspection objects within the management scope of the State Bank of Vietnam branch; banking inspection objects within the responsibility of other Banking inspection and supervision of the State Bank of Vietnam branch as directed by the Governor of the State Bank of Vietnam; banking inspection objects upon request of the Chief Inspector of Banking Inspection and Supervision, the Director of the State Bank of Vietnam branch;

b) Deciding to inspect when signs of violation of laws by banking inspection objects or signs of risks threatening the safety of operations of credit institutions and foreign bank branches within the assigned management scope are discovered, and bearing responsibility before the Director of the State Bank of Vietnam branch for such decisions.

5. When deemed necessary, the Governor of the State Bank of Vietnam may issue inspection decisions against banking inspection objects within the management scope of the State Bank of Vietnam."

4. Article 6 shall be amended and supplemented as follows:

"Article 6. Standards for the Head of the Inspection Team

1. Civil servants appointed by the Governor of the State Bank of Vietnam or the Chief Inspector of Banking Inspection and Supervision to serve as the Head of the Inspection Team must be at least Deputy Director or Senior Inspector or equivalent and meet the following standards:

a) Possess good moral qualities, sense of responsibility, integrity, honesty, fairness, and objectivity;

b) Understanding of inspection business; ability to analyze, evaluate, and synthesize issues related to the content of inspections;

c) Ability to organize and direct members of the Inspection Team to perform assigned inspection tasks.

2. A civil servant appointed as the Head of the Inspection Team by the Governor of the State Bank branch, the Director of the Banking Inspection Department, or the Inspector of the State Bank branch must be at least a Deputy Department Head or an Inspector and must meet the criteria set forth in points a, b, and c of Clause 1 of this Article.

5. Clause 7 of Article 16 shall be amended and supplemented as follows:

“7. In cases where the inspection is temporarily suspended, the Head of the Inspection Team shall issue a notification to the inspected entity and report to the person who made the decision to inspect. The period of temporary suspension of the inspection shall not be counted towards the inspection period.”

Article 2. Responsibility for Implementation

The Heads of the Office, the Inspectors of the State Bank, the Heads of units under the State Bank, the Governors of the State Bank branches in provinces and centrally governed cities, the Chairpersons of the Board of Directors, the Chairpersons of the Board of Members, and the General Managers (Directors) of credit organizations and foreign bank branches shall be responsible for organizing and implementing this Circular.

Article 3. Effectiveness

This Circular takes effect from September 15, 2019./.