Decision No. 1675/2004/QD-NHNN on Issuing the Regulation on the Organization and Operation of the Banking Inspection

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding the issuance of the Regulation on the Organization and Operation of the Banking Inspection

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Pursuant to the Law on Inspection No. 22/2004/QH11 dated June 24, 2004;

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating functions, tasks, powers, and organizational structure of Ministries and Ministerial-Level Agencies;

Pursuant to Decree No. 52/2003/ND-CP dated May 19, 2003, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Based on the proposal of the Chief Inspector and the Director of the Cadre and Civil Servant Organization Department;

After reaching agreement with the Minister of Internal Affairs,

DECISION:

Article 1. This Decision promulgates the "Regulation on the Organization and Operation of the Banking Inspection" attached hereto.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette. The Decision No. 270/2000/QĐ-NHNN9 dated August 21, 2000 of the Governor of the State Bank of Vietnam on the issuance of the Regulation on the Organization and Operation of the Banking Inspection of the State Bank of Vietnam and previous regulations contrary to this Decision are hereby repealed.

Article 3. The Heads of the Office, the Director of the Cadre and Civil Servant Organization Department, the Chief Inspector, and the Heads of relevant units under the State Bank of Vietnam are responsible for implementing this Decision.

RULES ON ORGANIZATION AND OPERATION

OF THE BANKING INSPECTION

(Issued pursuant to Decision No. 1675/2004/QĐ-NHNN dated December 23, 2004)

of the Governor of the State Bank)

PART I

GENERAL PROVISIONS

Article 1. The Banking Inspection is a unit within the organizational structure of the State Bank of Vietnam, performing the function of specialized inspection in banking and assisting the Governor in carrying out inspection tasks and powers within the areas under the management of the State Bank of Vietnam as prescribed by law.

Article 2. The Banking Inspection has its own seal for use in accordance with the provisions of law.

Article 3. The operation of the Banking Inspection is directed by the Chief Inspector; the Deputy Chief Inspectors assist the Chief Inspector. The Chief Inspector is appointed, relieved, or dismissed by the Governor after reaching consensus with the General Inspector; the Deputy Chief Inspectors are appointed by the Governor. The organization and operation of the Banking Inspection are carried out according to the principle of centralized democracy and the headship system.

Chapter II

TASKS AND POWERS

OF THE BANKING INSPECTION

Article 4. The Banking Inspection has the following tasks and powers:

1. Drafting the annual inspection program and plan for the entire banking inspection system for submission to the Governor; organizing and implementing the approved inspection program and plan.

2. Conducting remote monitoring, compiling, and analyzing the situation and results of operations of each credit institution and the entire system of credit institutions.

3. Conducting on-site inspections regarding the organization and operations of credit institutions, banking activities of other organizations, foreign exchange and gold trading activities within the scope of state management of the State Bank of Vietnam as prescribed by law.

4. Handling, recommending the Governor to apply measures against inspected entities that violate the law.

5. Imposing administrative penalties in the field of currency and banking activities or recommending administrative penalties as prescribed by law.

6. Reserving opinions in cases where the head of the agency does not approve the conclusion of the Banking Inspection and bearing responsibility for such opinions, while reporting to competent state authorities in accordance with the law on inspection.

7. Assisting the Governor in managing state affairs related to banking inspection, specifically:

a) Drafting and submitting to the Governor or advising the Governor to submit to competent authorities for issuance legal documents on banking inspection and other fields assigned;

b) Drafting and submitting to the Governor strategies, plans, projects, and proposals for developing banking inspection;

c) Organizing, implementing, and guiding the implementation of issued or approved documents;

d) Monitoring, inspecting, compiling, and reporting on the implementation of legal provisions concerning banking inspection work.

8. Organizing citizen reception upon authorization of the Governor. Examining, verifying, concluding, and recommending the resolution of complaints and denunciations in accordance with the Law on Complaints and Denunciations.

9. Advising the Governor on directing, guiding, inspecting, and combating corruption and crime prevention in the banking sector as prescribed by law.

10. Cooperating with related units to develop training programs and organize training and capacity building for civil servants in the banking inspection system; implementing international projects on technical assistance for the banking inspection system as assigned by the Governor.

11. Performing other tasks and powers as prescribed by laws on inspection and other relevant regulatory legal documents.

12. Performing other tasks assigned by the Governor.

Chapter III

ORGANIZATIONAL STRUCTURE AND MANAGEMENT

Article 5. The organizational structure of the Banking Inspection includes:

1. Office;

2. Department of State-Owned Credit Institutions Inspection;

3. Department of Non-State-Owned Domestic Credit Institutions Inspection;

4. Department of Foreign Credit Institutions Inspection;

5. Department of Complaints and Appeals Inspection;

6. Department of Supervision and Analysis.

Specific tasks and powers of each department shall be stipulated by the Chief Inspector in accordance with this Regulation.

Article 6. Tasks and Powers of the Chief Inspector

1. Implementing the tasks and powers prescribed by laws on inspection and other relevant legal documents.

2. Organizing the implementation of functions and tasks as specified in Article 4 of this Regulation; being responsible before the Governor and the law for all activities of the Banking Inspection.

3. Deciding on the work program and plan of the Banking Inspection and applying necessary measures within his authority to complete assigned tasks.

4. Managing and using personnel according to the classification and delegation of the Governor and the provisions of laws on inspection.

5. Signing administrative documents within his authority upon delegation from the Governor; signing documents within the authority of the Chief Inspector as prescribed by laws on inspection.

Article 7. Tasks and Powers of the Deputy Chief Inspector

1. Assisting the Chief Inspector in directing and managing certain tasks of the Banking Inspection according to the assignment of the Chief Inspector and being responsible to the Chief Inspector for the results of the assigned tasks.

2. Signing on behalf of the Chief Inspector on documents according to the assignment of the Chief Inspector.

3. When the Chief Inspector is absent, a Deputy Chief Inspector authorized by the Chief Inspector shall act on behalf of the Chief Inspector to manage general affairs and shall be responsible for the matters resolved during the period of authorization, while reporting back to the Chief Inspector.

Chapter IV

IMPLEMENTING PROVISIONS

Article 8. Amendments and supplements to this Regulation shall be decided by the Governor of the State Bank./.