Central bank to conduct unscheduled inspections of credit institutions

Headquarters of the State Bank of Vietnam (SBV). SBV’s newly issued Circular 17/2023/TT-NHNN regulates the inspection of compliance with monetary and banking policies and laws of credit institutions. — Photo sbv.gov.vn

HÀ NỘI — The State Bank of Vietnam’s (SBV) competent authorities can conduct unscheduled inspections of credit institutions to ensure their compliance with monetary and banking legal regulations from next month, according to a newly issued circular.

The new policy is under the SBV’s Circular 17/2023/TT-NHNN that will take effect from February 8 this year.

According to the SBV, the inspection is aimed at reviewing and evaluating information, data, and the compliance with monetary and banking policies and laws of credit institutions to ensure their completeness, accuracy, and compliance with regulations of laws on currency and banking.

Under the circular, planned and unscheduled inspections, which are carried out with authority and on the basis of legal regulations, will be conducted to ensure accuracy, objectivity and without overlap. Unscheduled inspections will be carried out on the basis of management requirements and actual situations; or requests, suggestions, and feedback from competent State agencies; or upon request or direction of the SBV’s Governor.

The SBV’s Governor will assign the heads of other administrative agencies under the SBV to sign the annual inspection plans. The SBV’s Banking Supervision Agency will take responsibility for developing and issuing an inspection plan for the following year before December 15 every year, and send the promulgated inspection plan to other administrative units under the SBV.

Other administrative agencies under the SBV will develop and issue inspection plans for the following year before December 25 every year, ensuring there will be no overlap with the inspection plans of the SBV’s Banking Supervision Agency for that year.

The annual inspection plans, which can be amended and supplemented when necessary, must have a basis for issuance, purpose, requirements, subjects, content, and time. The plans must be sent to the inspection subject no later than five working days from the date of issuance, according to the circular. — VNS