Central bank inspection aims to uncover credit violations
Central bank inspection aims to uncover credit violations
The State Bank of Viet Nam (SBV) has announced that its current inspection of banking operations was focusing on fields of high risk, especially credit activity and financial investment.
The SBV was responding to petitions of voters who wanted a speedier SBV inspection to clean up credit activity. The SBV said it has joined concerned organisations in handling violations of credit institutions such as excess lending limits, lending to ineligible entities and improper use of capital as revealed in inspections conducted in line with established laws and regulations, reports vneconomy.vn
In 2014, the inspections focused on clarifying the banking system's credit quality as well as banks' compliance with regulations on lending limits to ensure the credit institutions' operational safety. In the first nine months of 2014, inspectors raised more than 7,400 proposals for changes after carrying out nearly 900 inspections.
A total administrative fine of VND1.263 billion (US$59,500) and another $900 in fines were imposed in 130 cases of violations.
In October, the Government issued Decree 96/2014/ND-CP on administrative sanctions for monetary-banking infringements which takes effect on December 12.
The new decree called for tougher punishments, possibly including billions of dong in fines, on administrative infringements of the monetary and banking sectors.
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