Chương II Thông tư 08/2022/TT-NHNN trình tự thủ tục giám sát ngân hàng: Giám sát an toàn vi mô

Chapter II

MICRO-PRUDENTIAL SUPERVISION

Section 1: Collection, consolidation and processing of documents, information and data

Article 7. Collecting documents, information and data

1. Sources of documents, information and data serving the banking supervision include:

a) Data and reports under regulations of existing law on statistical reporting regimes of the State Bank of Vietnam;

b) Customer data of banking supervised entities from the National Credit Information Center of Vietnam (hereinafter referred to as "CIC”), sources of information and documents serving the supervision from the Cooperative Bank of Vietnam (Co-opBank) and the Deposit Insurance of Vietnam (DIV);

c) Information from inspection, supervision and post-inspection handling;

d) Information from the issuance of licenses of the State Bank;

dd) Independent audit results;

e) Results of credit ratings of State regulatory authorities;

g) Reports on micro-prudential supervision and macro-prudential supervision, sanctions therein;

h) Reports on request of the State Bank of Vietnam and other competent authorities;

i) Requests of state competent authorities applicable to banking supervised entities, including written guidance and requests of units affiliated to the State Bank of Vietnam;

k) Work records, written explanations, dossiers and data provided by banking supervised entities;

l) Documents, information and data collected from units affiliated to the State Bank of Vietnam and other sources (if any).

2. Micro-prudential supervision units shall collect documents, information and data from the sources prescribed in points a, b, c, d, dd, e and g clause 1 of this Article via the electronic statistical reporting system of the State Bank of Vietnam and the remote supervisory system.

3. Micro-prudential supervision units shall collect documents, information and data provided by the sources prescribed in points h, i, k, and l clause 1 of this Article.

4. Based on requests for banking supervision, micro-prudential supervision units shall request or appeal to Chief Inspectors, bank supervisors, Directors of branches of the State Bank of Vietnam to request banking supervised entities to provide documents, information and data other than those prescribed in clause 1 of this Article.

Section 8: Processing, updating and consolidating documents, information and data

According to sources of documents, information and data prescribed in Article 7 hereof, micro-prudential supervision units shall process and consolidate them as follows:

1. For documents, information and data updated automatically from the electronic statistical reporting system of the State Bank of Vietnam, from the CIC to the remote supervisory system, micro-prudential supervision units shall process according to regulations on statistical reporting regimes of the State Bank of Vietnam and regulations on administration, operation and use of the remote supervisory system.

2. For other documents, information and data not prescribed in clause 1 of this Article, micro-prudential supervision units shall:

a) review the logic of information via comparison of the collected documents, information and data with the historical data to detect issues that are unusual, illogical or unreasonable;

b) update necessary documents, information and data into the remote supervisory system according to regulations on administration, operation and use of the remote supervisory system promulgated by the Governor of the State Bank of Vietnam.

3. In case of detection of inadequate, failed or inappropriate documents, information and data at the requests of micro-prudential supervisors, micro-prudential supervision units shall request supervised entities to submit reports and explanations in the form of contact with supervised entities as prescribed in Chapter IV of this Circular.

4. According to information consolidated and processed, micro-prudential supervision units shall implement contents prescribed in Sections 2 and 3 of this Chapter.

Section 2. Micro-prudential supervision

Article 9. Contents of micro-prudential supervision of credit institutions and foreign bank branches

1. A micro-prudential supervision unit shall determine scope and contents of information related to the operation of a micro-prudential supervised entity for supervision of compliance with laws on the operational safety of banks, other regulations of monetary and banking laws in the operation of the micro-prudential supervised entity, which focuses on one or some or all of the following contents:

a) Provide supervision of compliance with statistical reporting regimes, information reporting regimes under regulations of the Law on Credit Institutions (revised version) and guidance documents related in its competence and responsibilities of the micro-prudential supervision unit;

b) Provide supervision of compliance with limits and prudential ratios in the operation of credit institutions prescribed in Articles 126, 127, 128, 129 and 130 of the Law on Credit Institutions (revised version; classify debts, extract risk reserve funds of credit institutions and foreign bank branches on the basis of results from the remote supervisory system and electronic statistical reporting system of the State Bank of Vietnam;

c) Provide supervision of compliance with the satisfaction of conditions and standards applied to managers and operators prescribed in Article 50 and clause 4 Article 89 of the Law on Credit Institutions (revised version); and compliance with administrative mechanisms of the supervised entity as prescribed in Chapter III of the Law on Credit Institutions (revised version);

d) Provide supervision of compliance with regulations of laws on transfer of capital contributions, loans, deposits and investment of credit institutions to their subsidiary companies, affiliated companies and branches abroad;

dd) Review internal regulations promulgated by the micro-prudential supervised entity according to regulations in Article 93 of the Law on Credit Institutions (revised version): Annually, the micro-prudential supervision unit shall choose certain internal regulations for reviewing.

2. The micro-prudential supervision unit shall carry out the supervision of compliance with directions and requests of state competent authorities applicable to the micro-prudential supervised entity (if any).

3. The micro-prudential supervision unit shall carry out risk supervision via the use of modules and methods of risk analysis promulgated by the Governor of the State Bank of Vietnam in each period and/or carry out analysis and consideration of risks of banking supervised entities via one or some or all of the following contents:

a) Analyze and consider key changes and unusual fluctuations via the use of change thresholds in items including assets, liabilities, equities, revenues and accrued interests, costs, business results, limits and prudential ratios on the basis of results from the State Bank's electronic statistical reporting system, the remote supervisory system. Chief Inspectors and bank supervisors shall decide change thresholds of the above-mentioned items.

b) Consider key impact on management and operation of the micro-prudential supervised entity by assessing the following contents:

(i) changes in managers and executives as prescribed in Article 50 and Article 89 of the Law on Credit Institutions (revised version) of the micro-prudential supervised entity;

(ii) Changes in the situation of shareholders, share ownership of managers, executives, major shareholders and related persons of these individuals and organizations (including investment in the form of capital contribution or share purchase with the aim of holding control over a credit institution being a joint-stock company);

(iii) Changes in the situation of capital contribution, limited partners and owners of credit institutions being limited liability companies or credit institutions being cooperatives.

c) On the basis of receiving adverse information that is possible to cause key impact on the micro-prudential supervised entity, the micro-prudential supervision unit shall assess and consider the risk situation of the micro-prudential supervised entity;

d) Supervise the situation of credit extension and credit quality for fields, customers and transactions with high risks in the operation of the micro-prudential supervised entity for analysis and assessment of levels of key impact on the operation of the micro-prudential supervised entity.

The micro-prudential supervision unit shall determine fields, customers and transactions with high risks in each period.

4. For joint-stock commercial banks, when necessary, the micro-prudential supervision unit shall review and assess the compliance with laws, credit quality and risks of high-value transactions (including credit extensions, investments, capital contributions, share purchases, other receivables). The micro-prudential supervision unit shall consider and decide specific high-value degrees of the above-mentioned transactions.

5. The micro-prudential supervision unit shall decide or appeal to the competent authority to decide other supervision contents applicable to the micro-prudential supervised entity within its assigned supervision suitable for needs and sources of the unit.

Article 10. Contents of macro-prudential supervision of a branch of a credit institution

1. Supervision of compliance includes:

a) Supervision of compliance with regulations of laws on:

(i) Statistical reporting regime of the branch as prescribed in statistical reporting regimes;

(ii) Other regulations of monetary and banking laws applicable to the branch.

b) The micro-prudential supervision unit shall carry out the supervision of compliance with directions and requests of state competent authorities applicable to the micro-prudential supervised entity (if any).

2. Supervision of risks in the following contents:

a) Items of assets, liabilities, revenues, costs and differential revenues and costs;

b) Situation of credit extensive and credit quality of the micro-prudential supervised entity. When necessary, the micro-prudential supervision unit shall review and assess the credit extensive and other high-value receivables of the micro-prudential supervised entity. Director of a branch of the State Bank of Vietnam shall decide specific high-value degrees of these transactions;

c) Preparation and update of the list of personnel information, including at least the branch director of the credit institution;

d) Information causing negative impact on the operation of the supervised entity.

3. For large-scale transaction offices in a particular area decided by the branch Director of the State Bank or transaction offices having information causing negative impact on the operation of such transaction offices, the micro-prudential supervision unit shall carry out the supervision as prescribed in clauses 1 and 2 of this Article via branches that managing such transactions.

Article 11. Enhanced supervision

1. Based on the operational situation of the micro-prudential supervised entity, the micro-prudential supervision unit shall consider and report to the Governor of the State Bank of Vietnam, branch Director of the State Bank of Vietnam the applicable to micro-prudential supervised entities through the addition of some supervisory contents and reporting frequency according to the Decision of the Governor of the State Bank of Vietnam or the Director of a branch of the State Bank of Vietnam for each specific case.

a) The micro-prudential supervised entity is classified at level C or D in case of the People’s credit funds; or level D or E in case of other credit institutions and foreign bank branches as prescribed in regulations of the State Bank of Vietnam on the credit rating of credit institutions and foreign bank branches;

b) Early intervention measure shall be imposed on the micro-prudential supervised entity according to regulations of laws and this Circular;

c) Other entities under the direction of state competent authorities.

2. Based on the operational situation of the micro-prudential supervised entity, the micro-prudential supervision unit shall appeal to the Governor of the State Bank of Vietnam, branch Director of the State Bank of Vietnam to decide the enhanced supervision, including:

a) Supervisory cope;

b) Supervisory subjects;

c) Supervisory contents, including supervision of liquidity situation; credit extensions, receivables and investments, capital contributions, share purchases or investments in the form of capital contributions and share purchases in order to take control of enterprises;

d) Reporting frequency of the micro-prudential supervised entity;

dd) Cooperative contents of units and individuals related to the enhanced supervision (if any).

Section 3. Preparation of reports and supervisory dossiers and proposal and imposition of sanctions

Article 12. Preparation of reports on the micro-prudential supervision and proposal and imposition of sanctions therefor

1. On the basis of results of the compliance supervision and risk supervision as prescribed in Section 2 of this Chapter and based on regulations of current laws, the micro-prudential supervision unit shall:

a) make an ad hoc or periodic report on micro-prudential supervision as prescribed in clauses 2 and 3 of this Article;

b) propose and impose sanctions as prescribed in Chapter V of this Circular (if necessary).

2. Rules for preparation, approval and submission of the ad hoc report on micro-prudential supervision:

a) The ad hoc report on micro-prudential supervision must be made when the micro-prudential supervision unit detects violations and risks of legal violations, risks that threaten the operational safety of the banking supervised entity or at the request of the competent authority;

b) The ad hoc report on micro-prudential supervision shall be approved and submitted as follows:

(i) The ad hoc report on micro-prudential supervision must be approved by the leader of the micro-prudential supervision unit;

(ii) Based on petitions in the ad hoc report on micro-prudential supervision and competence in solving the petitions according to regulations of laws, the ad hoc report on micro-prudential supervision must be submitted to the competent authority for consideration and decision;

(iii) The ad hoc report on micro-prudential supervision made at the request of any competent authority must be submitted to that competent authority for consideration and handling.

3. Rules for preparation, approval and submission of periodic report on the micro-prudential supervision:

a) A report on micro-prudential supervision for the first 6 month of a year must be completed before August 31 of the year. An annual report on micro-prudential supervision must be completed before April 15 of the next year;

b) The report on micro-prudential supervision shall be prepared according to Appendix III issued together with this Circular for a banking supervised entity being a credit institution or a foreign bank branch or according to Appendix III issued together with this Circular for banking supervised entities being branches of a credit institution in its area;

c) The periodic report on micro-prudential supervision shall be approved and submitted as follows:

(i) For the micro-prudential supervision unit under the organizational structure of the State Bank Branch, a 6-month or annual report must be approved by the leader of the micro-prudential supervision unit and must be sent to the leader of the State Bank Branch;

(ii) For the micro-prudential supervision unit under the organizational structure of the Banking Inspection or Supervision of the State Bank Branch of Hanoi or Ho Chi Minh City, a 6-month or annual report must be approved by the leader of the micro-prudential supervision unit and must be sent to the leader of the Inspection and Supervision of the State Bank Branch and the leader of the State Bank Branch;

(iii) For the micro-prudential supervision unit under the organizational structure of a Banking Inspection and Supervision Agency of the State Bank Branch of Hanoi or Ho Chi Minh City, a 6-month or annual report must be approved by the leader of the micro-prudential supervision unit and must be sent to the leader of the Inspection and Supervision Agency of the State Bank Branch and the leader of the State Bank;

(iv) In case the report on micro-prudential supervision including the petition for imposing sanctions on a competent authority as prescribed by laws, the report on micro-prudential supervision must be submitted to such competent authority for consideration and decision.

Article 13. Micro-prudential supervision dossiers

1. A micro-prudential supervision dossier shall include ad hoc and periodic reports on the micro-prudential supervision, documents on the contact with the banking supervised entity and a dossier of sanctions in the micro-prudential supervision.

2. In case an early intervention measure is imposed on the banking supervised entity, the micro-prudential supervision dossier needs to include a Decision on applying the early intervention measure as well as remedial measures therefor.

3. In case an enhanced supervision measure is applied to the banking supervised entity, the micro-prudential supervision dossier needs to include a Decision on applying the enhanced supervision measure as well as information, documents, data and remedial measures therefor.