Violation of regulations on credit to pay debt before the due date
According to the inspection conclusion of the Banking Inspection and Supervision - the State Bank of Vietnam Branch of Dak Lak Province, Vietnam Bank for Import and Export Joint Stock Commercial Bank for Dak Lak Branch (abbreviated: Eximbank Dak Lak) violates regulations Credit grant.
The inspection conclusion stated that Eximbank Dak Lak issued credit to 33 customers to pay in advance the loan deadline at the Electricity Finance Finance Company, including 27 loans with a deadline in excess of the remaining deadline of the remaining deadline of Original loan. This violates the provisions of Circular 39/2016/TT-NHNN on lending activities of credit institutions.
The approved loans lasted until 2032, while the loan term at the Electricity Finance Company was only until 2027. law provisions, potential risks for banks.
Interest in evaluation and risk control
In addition to the issue of loan term, the inspection also pointed out a number of violations in the evaluation and risk control at Eximbank Dak Lak, such as:
There are 29 customers who have not fully met the loan conditions but are still approved for credit. In particular, some businesses do not have profitable business activities, violate the internal regulations of Eximbank;
Determine the loan level exceeding the value of collaterals, especially the system of machinery and equipment for used electricity production. These assets are low in liquidity, potentially risk of recovery of difficult debts if customers lose their ability to repay debts;
The credit approval process shows signs of violation of the principle, when two -thirds of the high -level credit council members are related to violating loans.
Potential risks in capital recovery
The loans of Eximbank Dak Lak mainly focused on renewable energy, especially solar power projects that have been in operation since 2021. Operated for more than 3.5 years, equivalent to 50% of the initial return time.
The SBV Inspectorate said that the remaining asset value of the projects was not high, while the cash flow from electricity production activities could be affected by the fluctuations of price policies and electricity output to the net. This increases the risk of banks in debt recovery if customers have financial difficulties.
Some customers arbitrarily change their payment accounts with electricity companies, failing to comply with the commitment to transfer revenue via account at Eximbank Dak Lak. This is a sign that can affect the ability to control the bank's cash flow to the loans.
Request for handling violations and credit review
Facing the above violations, the SBV Inspection and Supervision of Dak Lak Branch requires Eximbank Dak Lak to take remedial measures:
Review the responsibility of related individuals in the appraisal, approval and credit supervision;
Review and adjust loans to ensure compliance with law provisions, limit credit risks;
Strengthen inspection and supervision after disbursement, ensuring customers comply with the commitment of the use of capital and cash flow;
In addition, the State Bank of Dak Lak branch also asked the Eximbank Board of Directors to consider and handle violations against related individuals, in order to ensure discipline in credit activities.
