Nam Dinh MB's inspection points out a series of shortcomings from lending to bad debt handling

Thuận Hiền |

The State Bank Inspectorate requested MB Nam Dinh to rectify 8 recommendations related to credit activities and money laundering prevention and control.

The State Bank of Vietnam Region 7 Inspectorate has just publicly announced the inspection conclusion for Military Commercial Joint Stock Bank, Nam Dinh Branch, abbreviated as MB Nam Dinh.

According to the notice, on June 30, 2026, the Chief Inspector of the State Bank of Vietnam Region 7 issued Inspection Conclusion No. 40/KL-TTNH for this branch.

The inspection focused on credit granting activities; debt classification; provisioning and use of risk provisions; handling and recovering bad debts and off-balance sheet debts after handling credit risks. The compliance with regulations on money laundering prevention and control is also within the scope of inspection.

The inspection period is calculated from January 1, 2024 to the time of inspection. Functional agencies can consider both the content before or after the above period if deemed necessary.

The conclusion stated that during the inspection period, MB Nam Dinh basically completed the growth targets for capital sources and outstanding credit; basically complied with the provisions of law and the State Bank.

However, the inspection agency also pointed out that credit granting activities at MB Nam Dinh still exist in a series of stages.

Expenditures are recorded related to the principles of borrowing capital; appraisal and approval of loans; loan dossiers; determination of loan terms; inspection and supervision of loan capital and collateral.

The work of handling and recovering bad debts and off-balance sheet debts after handling credit risks at branches also still exists. Notably, the inspection agency mentioned the situation of not keeping the handling and recovery plan for some problematic credit lines.

In addition, compliance with legal regulations on anti-money laundering and terrorist financing still exists in recognizing and updating customer information.

From the inspection results, the State Bank of Vietnam Region 7 Inspectorate requested MB Nam Dinh to implement a total of 8 recommendations to overcome the shortcomings and limitations that have been pointed out, thereby ensuring safe, effective and legally regulated operations.

The notice was issued on July 9, 2026. The document did not specifically disclose the customer's name, the value of problematic credit amounts, related amounts or decisions on administrative sanctions against MB Nam Dinh.

Thuận Hiền
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