Strictly handle violations in banking operations
As Lao Dong Newspaper has reported, the Government Inspectorate has just pointed out "A series of violations in credit granting activities occurring at SHB Bank".
The shortcomings, limitations, and violations in some contents such as: Compliance with the law in credit granting activities; the situation of bad debts and compliance with regulations on debt classification; the implementation of credit policies under the direction of the Government, the State Bank of Vietnam (SBV) and compliance with regulations in maintaining share ownership ratios of shareholders.
Based on the inspection results, the Government Inspectorate proposed that the SBV strengthen management, inspection, supervision, review, and handling of violations, especially strictly implementing the implementation of credit policies as directed by the Government and the Prime Minister; compliance with regulations on credit ratios for relevant customer groups; compliance with regulations on capital contribution ratios of shareholders and related persons;... to ensure the safety of banking operations and the system of credit institutions; serving production and business, contributing to economic growth.
The SBV of Vietnam is also recommended to study, review, and advise competent authorities:
- Regulations on credit control for high-risk sectors, forms of credit granting that pose many risks such as capital contribution for real estate investment and business, credit granting when the 3-party purchase and sale has been completed.
- Regulations on the deadline to ensure the limit on the capital contribution ratio to shareholders and related persons specified in Article 63 of the Law on Credit Institutions in 2024.
- Review and comprehensively evaluate to have sanctions to control and manage shareholders owning over 1% of charter capital and related persons.
Continue to direct inspection, examination, and handling of banks in credit granting (Inspection, examination, and supervision of credit institutions to prevent and strictly handle violations in banking operations, especially acts of manipulation, cross-ownership, and credit granting to "backyard" businesses...), especially for high-risk sectors such as real estate and securities.
At the same time, directing and supervising SHB to implement the recommendations of the Government Inspectorate.
Review and re-evaluate loans that violate legal regulations
For Saigon - Hanoi Commercial Joint Stock Bank (SHB), the Government Inspectorate proposed that the Chairman of the Board of Directors seriously organize the implementation of the Directives of the Prime Minister and the SBV in providing credit to priority sectors and strictly control sectors with many potential risks; strictly implement the inspection and examination conclusions of functional agencies that have taken effect.
Have solutions to ensure compliance with regulations on the ownership ratio of shareholders and related persons according to the Law on Credit Institutions in 2024.
Rectify and overcome shortcomings, ensure credit activities in accordance with the law; review and improve SHB's internal regulations, focusing on appraisal, lending approval, inspection of loan capital use, valuation, receipt, and management of collateral, especially for credit contracts in potentially risky areas.
Organize reviews and be fully responsible for: Debt classification, provisioning for risks of credit amounts according to legal regulations; re-evaluate existing credit contracts, shortcomings, and violations mentioned in the inspection conclusion. At the same time, review and be fully responsible before the law for similar cases that have not been inspected by the Government Inspectorate, to have measures to rectify and handle promptly, to prevent risks and loss of capital and assets of SHB.
Review and re-evaluate loans that violate legal regulations, regulations of the SBV and credit contracts to consider handling according to their authority for credit contracts with violations mentioned in the inspection conclusion.
Through review and evaluation, if violations of the law on credit activities are detected, the case file will be transferred to a competent authority for handling according to regulations.
