Decision No. 1071/2002/QD-NHNN On Amending and Supplementing Certain Articles and Clauses of the "Special Supervision Regulation for Joint Stock Credit Institutions of Vietnam" issued together with Decision No. 215/1998/QD-NHNN dated June 23, 1998 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Regarding the amendment and supplementation of certain Articles and Clauses of the "Special Supervision Regulation for Joint Stock Credit Institutions" issued together with Decision No. 215/1998/QĐ-NHNN5 dated June 23, 1998 of the Governor of the State Bank of Vietnam.

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 and the Law on Credit Organizations No. 02/1997/QH10 dated December 12, 1997;

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on Government Organization dated December 25, 2001;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

At the proposal of the Director of the Department of Banks and Non-Bank Credit Institutions.

Amending and supplementing certain Articles and Clauses of the "Special Supervision Regulation for Joint Stock Credit Institutions" issued together with Decision No. 215/1998/QĐ-NHNN5 dated June 23, 1998 of the Governor of the State Bank of Vietnam, as follows:

Pursuant to …;

Article 1. Article 5. A joint stock credit institution may be placed under special supervision when it falls into one or more of the following situations:

1. Article 5 shall be amended and supplemented as follows:

1. There is a risk of losing the ability to pay, which is manifested by failing to ensure the minimum liquidity ratio of 1 between immediately payable assets ("Have") and immediately payable liabilities three times within a month.

2. There is a risk of losing the ability to settle debts, which is manifested by:

2.1. Continuously failing to maintain the minimum capital adequacy ratio of 8% between own capital and assets "Have," including off-balance sheet commitments, adjusted according to the level of risk, for three consecutive months.

2.2. Bad debts (including overdue loans, loans awaiting processing, loans written off reflected in the monthly balance sheet, and loans transferred to the Asset Management Corporation for recovery on behalf of the joint stock credit institution), account for 10% or more of total loan outstanding or 100% or more of total own capital.

2.3. Accumulated losses and the amount of risk provisions not adequately set aside, exceeding 50% of total own capital".

2. Clause 2 Point 2.2 of Article 9 shall be amended and supplemented as follows:

"2.2. Temporarily suspend the right to manage, supervise, and operate the joint stock credit institution of members of the Board of Directors, Supervisory Board, General Director (Director), Deputy General Director (Deputy Director) if deemed necessary.

Propose the Governor of the State Bank of Vietnam to suspend the right to manage, supervise, and operate the joint stock credit institution of members of the Board of Directors, Supervisory Board, General Director (Director)".

3. Clause 2 of Article 11 shall be amended and supplemented as follows:

"2. Continue to manage, supervise, and operate the activities and ensure the safety of assets of the joint stock credit institution in accordance with the provisions of the law, the State Bank of Vietnam, except in cases where the right to manage, supervise, and operate the joint stock credit institution has been temporarily suspended or suspended".

The Head of the Office, the Director of the Department of Banks and Non-Bank Credit Institutions, the Heads of relevant units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, the Chairmen and members of the Board of Directors, the Heads and members of the Supervisory Board, the General Directors (Directors) of joint stock credit institutions, are responsible for implementing this Decision.

Article 2. This Decision shall take effect fifteen days from the date of signature.

Article 3. The Head of the Office, the Director of the Department of Banks and Non-Bank Credit Institutions, the Heads of relevant units under the State Bank of Vietnam, the Governors of the State Bank Branches in provinces and centrally governed cities, the Chair and members of the Board of Directors, the Heads and members of the Supervisory Board, and the General Managers (Directors) of joint-stock credit institutions shall be responsible for implementing this Decision.