Chapter IV
OPERATION OF COMMERCIAL BANKS
Section I. OPERATIONS AND CHARTER CAPITAL
Article 78. Permitted professional operations
Banks may conduct operations under Chapter III of the Law on Credit Institutions, the Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions and relevant current regulations of the Government and the State Bank.
Article 79. Necessary processes and policies in the course of operation
To ensure safety in banking operations, a bank shall work out and implement the following processes and policies:
a/ Process to manage investment and acquisition activities and control major investments;
b/ Process to provide credits to maintain an appropriate credit administration system;
c/ To maintain the information system to support the process to control major loans;
d/To work out and observe policies to classify debts and set aside risk provisions;
e/ Policies on evaluation of the quality of assets and compliance with minimum capital safety ratios;
f/ Policies and full process to identify, supervise and manage national risks and conversion risks in international lending and investment (for banks involved in foreign lending and offshore investment);
g/ System to allow measurement and comprehensive supervision and control of risks;
h/ Policies to manage liquidations, which must specify liquidation management procedures and limits;
i/ Internal examination and control system suitable to the nature and size of operation of the bank;
j/ Appropriate policies and procedures, including the "client identification" principle to ensure ethical and professional standards in the finance sector and prevent unintentional or intentional use of the bank for criminal purposes:
k/ Other processes and policies under law, the bank charter and international practice.
Article 80. Adjustment of the charter capital
1. A bank must obtain the State Bank's written approval before adjusting its charter capital under current law.
2. After adjusting the charter capital, the bank shall register its new charter capital with the business registry.
3. The Board of Directors shall be held responsible before law for the evaluation of dossiers, procedures and conditions for the bank to adjust its the charter capital under the State Bank's regulations, relevant laws and the bank charter.
Section 2. FINANCE, REPORTING, INFORMATION, CONFIDENTIALITY AND INDEPENDENT A UDIT
Article 81. Financial regulations
1. A bank shall comply with financial regulations of the Government and guidance of the Ministry of Finance.
2. The Board of Directors, the Control Board and Director General of a bank shall take responsibility before law and state management agencies for their bank's observance of financial, audit and accounting regulations.
Article 82. Reporting
1. A bank shall make, present and send financial statements and statistical reports to state management agencies under law. The Board of Directors and Director General of the bank shall take responsibility for the accuracy and truthfulness of these reports.
2. A bank's financial statement comprises an accounting balance sheet, a business result report, a report on cash flow and an explanation of the financial statement. An annual financial statement must truthfully and objectively reflect profits and losses of the bank in the fiscal year and professional operations of the bank up to the time of reporting.
3. A bank which has subsidiaries shall make a consolidated financial statement under law.
4. A bank shall make and send periodical reports under the State Bank's regulations. In addition, it shall promptly report to the State Bank when:
a/ Abnormal developments in its professional operations may seriously affect its business;
b/ There is a major change in the bank's organizational structure.
5. A bank shall send to the State Bank annual reports under law within 90 days from the end of a fiscal year.
Article 83. Disclosure of financial statements
Within 120 days from the end of a fiscal year, a bank shall disclose its financial statements under law. The State Bank shall specify the disclosure of financial statements of banks.
Article 84. Information
1. A bank shall regularly notify account owners of transactions and balance of their bank accounts at the latter's request.
2. A bank may exchange information on banking operations and its clients with other credit institutions.
3. A bank shall report and supply information to the State Bank on its organization and business activities at the latter's request and may be supplied by the State Bank with information related to banking operations of its clients.
Article 85. Information confidentiality
1. Staff members of a bank and affiliated persons may not reveal national secrets and the bank's business secrets they know.
2. A bank may refuse a request by an organization or individual for supply of information related to deposits and property of its clients and its operations unless such request is made by a competent state agency under law or agreed by its clients.
Article 86. Independent audit
1. At least 30 days before the end of a fiscal year, a bank shall select a qualified independent audit institution under the State Bank's regulations to audit its financial statements under regulations. Independent audit institutions shall be selected under the bidding law.
2. In the course of audit, a bank shall:
a/ Promptly, fully and truthfully supply all information and materials necessary for the audit;
b/ Coordinate with and create favorable conditions for auditors.
3. The Board of Directors, the Control Board, the Director General and other executive officers shall meet to thoroughly evaluate audit reports and recommendations of the independent audit institution and work out plans and schedules to realize those recommendations and monitor the implementation thereof.
4. Independent auditors may attend meetings of the Shareholders' Meeting, collect notices and other information related to any meeting that may be received by shareholders and give their opinions on audit-related issues at the Shareholders' Meeting.
5. The audit of specific activities of the bank complies with the Law on Credit Institutions, the Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions, the audit law and guiding documents of the State Bank.
Section 3. RESPONSIBILITIES OF BANKS AND THE STATE BANK IN BANKING OPERATIONS
Article 87. Responsibilities of a bank
1. To take responsibility before law for its entire business operations.
2. To comply with law on bank organization, governance and operation.
3. To post up at places of transaction information on interest rates of deposits and loans, charge rates, exchange rates, transaction times and other information deemed necessary by the bank.
4. To fully store data and financial and accounting books in accordance with accounting policies and practice to help bank supervisory agencies truthfully and properly evaluate the bank's financial status and business operations.
Article 88. Responsibilities of the State Bank
1. To promulgate legal documents guiding the organization, governance and operation of banks under this Decree.
2. To manage and evaluate banks' observance of current law and handle and redress banks that fail to properly comply with law.
Tìm kiếm
Nghị định 59/2009/NĐ-CP (Bản Word)
Nghị định 59/2009/NĐ-CP (Bản Pdf)