Quyết định 2336a/QĐ-NHNN 2016 về việc phê duyệt Kế hoạch thanh tra năm 2017

THE STATE BANK OF VIETNAM

Decision No. 2336a/QD-NHNN dated November 25, 2016 of the State Bank of Vietnam on approval for inspection plan in 2017

Pursuant to the Law on Inspection No. 56/2010/QH12 dated November 15, 2010;

Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12;

Pursuant to the Government s Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam;

Pursuant to the Government s Decree No. 26/2014/ND-CP dated April 7, 2014 on organization and operation of inspection and supervision in banking sector;

Pursuant to Circular No. 01/2014/TT-TTCP dated April 23, 2014 of Government Inspectorate on formulation and approval for orientation to inspection programs or plans;

Pursuant to Document No. 2886/TTCP-KHTCTH dated October 31, 2016 of Government Inspectorate on guidelines for formulation of Inspection Plan in 2017;

At the request of the Chief Banking Inspector-Supervisor,

DECIDES:

Article 1.To approve the Inspection Plan in 2017 (To attached with a list of inspection visits in 2017).

Article 2.Assign the Chief Banking Inspector-Supervisor to initiate and inspect, expedite the implementation of Inspection Plan in 2017 in accordance with the Law on Inspection No. 56/2010/QH12 and relevant laws.

Article 3.The Chief Banking Inspector-Supervisor, Directors of branches of the State Bank of provinces and central-affiliated cities, Heads of relevant agencies shall implement this Decision.

For the Governor

The Deputy Governor

Nguyen Phuoc Thanh

INSPECTION PLAN IN 2017

(Issued together with Decision No. 2336a/QD-NHNN dated November 25, 2016 of the Governor of the State Bank)

Part I

PURPOSES, REQUIREMENTS

I. PURPOSES

1. Initiate implementation of regulations on inspection, associated with advices on state management, socio-economic management and perfecting the system in the field of monetary and banking. The inspection shall closely satisfy requirements pertaining to performance of duties and plan for socio-economic development of the country and banking sector.

2. Prevent, discover, and promptly deal with potential risks to safety and violations of law; contribute to the prevention and combating of corruption, crime in banking sector. Discover loopholes and shortcomings in the management and operation, policies, and regulations on monetary, banking, trading in gold and foreign exchange; restructure and settle bad debts of credit institutions and branches of foreign banks to request competent authorities to correct violations amend and improve policies of the State and banking sector.

3. Strictly and effectively implement policies of the Communist Party, the State and regulations of law on inspection, reception of citizens, handling of complaints, denunciation, and prevention and combating of misconduct, waste, and corruption. Strengthen accountability of entities in the banking sector for comply compliance with laws, policies of the Communist Party, the State so as to facilitate the reception of citizens, and handle complaints and denunciation that are complicated, unresolved, and prolonged. Properly assess the situation, quality, and efficiency of the performance of duties, inspection, and supervision; reception of citizens, handling of complaints, denunciation; prevention and combating of corruption, misconduct and crime.

4. Contribute to ensure the compliance with regulations of law on monetary and banking matters; improve the efficiency in state management and order and discipline in those fields under management of the State bank of Vietnam (SBV); ensure the safety and soundness of the credit institution system; assess the implementation and restructuring of the credit institution system in accordance with Decision No. 254/QD-TTg dated March 1, 2012 of the Prime Minister; determine shortcomings, difficulties, reasons and measures in order for credit institutions to stick to approved plans for restructuring and bad debt settlement, which are contributed to restructure the system of credit institutions and branches of foreign banks associated with bad debt settlement in the period of 2016 - 2020.

5. Assess the performance of functions, tasks, powers of affiliates of the State bank and the performance of tasks, powers of civil servants of affiliates of the State bank; the extent of compliance with regulations on monetary and banking matters and foreign exchange transactions of credit institutions, and branches of foreign banks; combine the inspection of compliance with policies and laws on monetary and banking matters and inspection of risks in operation of inspected entities in banking sector; inspect the implementation of plans for restructuring and assessment of level of risks, operation safety and credit quality involved in activities of credit institutions and branches of foreign banks. In consideration of above-mentioned matters, the assessment of risks and potential risks in monetary and banking operation and foreign exchange of credit institutions and branches of foreign banks shall be carried out.

II. REQUIREMENTS

1. Inspect major issues, meet requirements pertaining to state management in monetary and banking matters. Inspect and assess the financial situation, financial performance, capital and ownership reality of credit institutions; regulations on capital contribution, share purchase; the extent of compliance with regulations on prudential ratios in operation of credit institutions, branches of foreign banks; prevention and combating of money laundering; inspection of implementation of plans for restructuring with assessment of level of risks, settlement of bad debts, credit quality, and operation safety involved in activities of credit institutions and branches of foreign banks. Inspection focuses on those fields from which risks, misconduct, corruption and mistakes easily arise, and attach special importance to effective implementation of proposals, determination, and decisions after inspection and supervision.

2. Determine and evaluate the extent of compliance with regulations on inspection contents; risks and potential risks in connection with business and services.

3. According to the financial performance in business and services, it is required to evaluate the quality and capacity of administration and control of Board of Directors, the Control Board and Board of Management of credit institutions; procedures for administration and control of risks.

4. Provide clear and specific determination of inspection contents; give warnings against risks; particularly specifying (i) each content of inspection; (ii) achievements, positive results to be promoted; (iii) violations, risks, problems, difficulties, determination of proper or improper practice, nature and severity of the violations, the possibility of economic loss; (iv) reasons and responsibilities of relevant groups or individuals; (v) proposals for remedial measures.

5. Seriously initiate policies and regulations of law on reception of citizens, handling of complaints and denunciation. Facilitate the reception of citizens and document processing, handle complaints and denunciation promptly and efficiently in consideration of respect and protection of legitimate rights and interests of citizens, common interests of the State in accordance with regulations of law and actual condition. Strengthen the propagation and raise public awareness of legal knowledge about reception of citizens and handling of complaints and denunciation in banking sector.

6. Initiate measures for prevention, discovery and tackling of corruption in accordance with regulations of law. Implement regulations on prevention and combating of corruption in accordance with regulations of United Nations Convention against Corruption. Strengthen the propagation and raise public awareness of legal knowledge about prevention and combating of corruption to raise awareness, promote the roles and responsibilities of society in preventing and combating of corruption.

7. Properly evaluate the reality, quality and efficiency of (i) performance of duties of management, inspection, and supervision assigned; (ii) the extent of compliance with policies of the Communist Party, the State and regulations of law; (iii) the initiation of measures for restructuring and settlement of bad debts of credit institutions; and (iv) the reception of citizens, handling of complaints and denunciation, prevention and combating of corruption, misconduct and crime.

8. Combine the inspection of the extent of compliance with policies and laws on monetary and banking sector and inspection of risks in the operation of inspected entities in the banking sector; inspect the implementation of restructuring plans and evaluate the levels of risks and safety in operation and credit extending of credit institutions and branches of foreign banks. The inspection shall be focused on the following entities (i) credit institutions and branches of foreign banks and other entities expected to be inspected in 2016 that have not undergo such inspection; (ii) those that have not been inspected in at least 3 last years; (iii) those showing signs of potential risks and legal violations; and (iv) those whose operation reality should be evaluated and clarified to serve the purpose of restructuring of credit institutions and settlement of bad debts.

Administrative inspected entities that undergo inspections related to the compliance with regulations on prevention and combating of corruption and crime shall be chosen according to the following criteria:  (i) those that have not been inspected for more than 3 years; (ii) those that are involved in complicated and prolonged complaints/denunciation; (iii) the State Bank units that raise numerous people s credit funds that are poor and posing potential risks; (iv) credit institutions in the administrative divisions that have high rates of bad debts; and (v) credit institutions in the administrative divisions that are subject to restructuring. The administrative inspection contents shall be focused on crucial sectors, prone to misconduct, violations, and corruption.

9. Continue to implement widespread inspections of people s credit funds nationwide, in which focus on people s credit funds that have not been inspected for at least 2 last years, people s credit funds that are ranked poor and pose potential risks or show signs of legal violations.

Part two

ADMINISTRATIVE INSPECTION; INSPECTION OF HANDLING OF COMPLAINTS, DENUNCIATION; INSPECTION OF PREVENTION AND COMBATING OF CORRUPTION AND CRIME

I. CONTENTS OF INSPECTION

1. Inspect the performance of duties and entitlement prescribed by the Governor of the State Bank and the implementation of policies and laws on duties and entitlement of units, in which the following aspects shall be focused:

1.1. Inspection, supervision, and actions against violations in relation with operation of inspected entities in the administrative divisions;

1.2. Issuance of, revocation of, and amendments to establishment and operation licenses of people s credit funds, branches of credit institutions, transaction offices, ATM rooms; approval for changes to credit institutions and other organizations involving banking activities in the administrative divisions authorized by the Governor of the State Bank;

1.3. The direction, monitoring, and supervision of restructuring of credit institutions and people s credit funds in the administrative divisions in accordance with regulations of law and direction of the Governor of the State Bank (including settlement of bad debts);

1.4. Implementation of determination, proposals, and decisions on actions against inspection-related issues and post-inspection results.

2. The propagation and initiation of legislative documents of the State, the State Bank on monetary and banking sector to organizations and individuals in the administrative divisions. The statistics and gathering of information for the purposes of research, analysis and economic forecasts in the administrative divisions. Reports and responses to inquiries upon request. The performance of duties of state management in foreign exchange and gold trading.

3. The direction and administration of leadership boards during the implementation of regulations of law and their performance of assigned duties.

4. Responsibility of units in compliance with regulations of law on management and use of capital, assets, income-generating recurrent services, capital construction:

4.1. The furnishing and management of assets in accordance with standards prescribed by the State and the State Bank;

4.2. The year-end stocktaking;

4.3. Liquidation of fixed assets and labor tools and machinery;

4.4. The implementation of regulations on management of assets.

5. The performance of duties and entitlement of civil servants of the unit:

5.1. Performance of duties and entitlement of civil servants as prescribed by law and other relevant regulations; internal regulations and working regulations of agencies and organizations; performance of other duties assigned by competent authorities or persons; and prohibited acts applicable to officials/civil servants;

5.2. Implementation of regulations of recruitment, arrangement of work, appointment, training, transfer, rotation, secondment, discharge, assessment, severance, retirement, reward, and disciplines of civil servants and ethics and communications of civil servants on duties, and facilities/means provided for civil service activities.

5.3. The implementation of regulations on management of officials and civil servants.

6. The implementation of regulations on reception of citizens.

7. The implementation of regulations on handling of complaints; responsibilities of state management in handling of complaints and actions against violations of law on complaints.

8. The implementation of regulations on handling of denunciation, handling of denunciation, protection of denouncers; responsibilities of state management in handling of denunciation and actions against violations of law on denunciation.

9. The implementation of regulations on prevention and combating of corruption and crime of banking sector, including:

9.1. Propagation and thorough grasp of policies and regulations of the Communist Party and the State on prevention and combating of corruption; propagation of United Nations Convention against Corruption, National Strategy against Corruption by 2020 of the Government and banking sector applicable to officials and civil servants in agencies, organizations and units;

9.2. The establishment, strengthening and promulgation of operation regulations of steering committees (steering subcommittees) against corruption and crime;

9.3. Implementation of directions of the Communist Party, the State, and the State Bank on prevention and combating of corruption and crime;

9.4. The transfer of positions of officials and civil servants; implementation of regulations on gifts, receiving gifts and returning gifts;

9.5. The declaration of income and assets;

9.6. Actions against heads of banking agencies, organizations and units upon occurrence of corrupt practice in their agencies, organizations and units.

9.7. Formulation and implementation of policies, standards;

9.8. Formulation and implementation of code of conduct, the rules professional ethics;

9.9. Adoption of measures and amendments to proposals and decisions issued after inspection, investigation, audit, and judgments/verdicts in connection with corruption;

9.10. The implementation of reporting on prevention and combating of corruption.

9.11. The implementation of regulations on thrift practice, waste combat.

II. INSPECTED ENTITIES

1. Administrative inspection

- Contents of inspection: Matters prescribed in Section I Part two of the Inspection Plan.

- Administrative inspection (07 entities): Branches of the State Bank in: An Giang; Ba Ria – Vung Tau; Dak Lak; Phu Tho; Thua Thien Hue; Tien Giang; Vinh Phuc.

2. Inspection of the extent of compliance with regulations on prevention and combating of corruption and crime (06 entities)

2.1. Inspection (04 entities): Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank); Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV); Vietnam Bank for Social Policies; Deposit insurance of Vietnam.

2.2. Inspection (02 entities): Asia Commercial Joint Stock Bank (ACB); Vietnam Technological and Commercial Joint Stock Bank (Techcombank).

Part three

SPECIALIZED INSPECTION

I. INSPECTION OF JURIDICAL PERSONS

1. Contents of inspection

According to actual situation of each inspected entity and state management requirements, the person competent to issue decisions on inspection shall issue a decision on inspection of one, a number, or all of the following contents:

1.1. Inspection and evaluation of financial situation and financial performance:

Consider and evaluate reality of revenues, expenses, financial performance in consideration of evaluation of asset quality, debt classification and building up of loan loss reserves; assess the extent of compliance with regulations of law on accounting of interests receivable, expenditures on sale promotion, advertisement, brokerage, commission, and payment of salaries and remuneration.

1.2. Inspection of allocated capital, charter capital, owner s equity and reality of ownership of charter capital:

- Assess the compliance with regulations on capital contribution, share purchase; proportion of shareholding; and sale, transfer of shares, stakes of credit institutions; 

- Evaluate the reality of charter capital, allocated capital, owner s equity, the capital contribution, share purchase of credit institutions; in which focus on sources of funds provided for the capital contribution, share purchase of credit institutions and major shareholders of credit institutions, sources of funds provided for increase in charter capital, receipt of transfer of stakes and shares.

- Evaluate the reality of ownership structure of charter capital (shareholders/capital contributors being individuals, enterprises, credit institutions, other entities; domestic shareholders/capital contributors, foreign shareholders/capital contributors; shareholders being state-owned enterprises) and influence degrees of major shareholders/shareholder groups and their relevant persons in terms of administration and operation of credit institutions.

1.3. Inspection of administration and system of internal control and audit:

- The extent of compliance with regulations on administration and internal control and audit; requirements pertaining to managers, executives and other positions of credit institutions and branches of foreign banks as prescribed in regulations of law; management and supervision of operation of their branches, transaction offices, and public service providers and other affiliated entities.

- The promulgation of policies and professional and internal regulations; conduct supervision and inspect the implementation of policies and regulations of the State, directions of the State Bank and internal policies, decisions and resolutions of the General Meeting of Shareholders and the Board of Directors/the Board of members.

- Other contents (if necessary) of administration, internal control, internal audit of credit institutions and branches of foreign banks.

- The inspection of administration and system of internal control and audit shall combine with the inspection of professional operations of credit institutions so as to provide a correct determination of reality of administration and control of credit institutions and branches of foreign banks.

1.4. Inspection of operations

1.4.1. The extent of compliance with regulations on prudential ratios in operation of credit institutions and branches of foreign banks in accordance with Circular No. 36/2014/TT-NHNN dated November 20, 2014; Circular No. 06/2016/TT-NHNN dated May 27, 2016 on amendments to Circular No. 36/2014/TT-NHNN, in which the following contents shall be focused:

- The extent of compliance with regulations on banking safety, including capital adequacy ratio, credit limits, creditworthiness, maximum short-term sources of funds used for middle-term and long-term loans, credit limits, cases of restrictions and prohibition of credit extending as prescribed in law of credit institutions; limits on investment in fixed assets; gold and foreign exchange position.

- Evaluate the creditworthiness and solvency ratio; evaluate the formulation and control of liquidity management limits, maturity mismatch limits, currency structure of funds and use of funds.

1.4.2. Extending credit (including loans, guarantees, discounts and rediscounts, finance lease, factoring, investment in corporate bonds, issuance of credit cards and other types of credit extending as prescribed by the State Bank).

- The extent of compliance with regulations on lending interest rates and fees in credit extending.

-  The extent of compliance with regulations on: credit extending; purchase of unlisted corporate bonds; debt to equity conversions; credit growth limits as prescribed by the State Bank; regulations on credit operation safety and limits to credit extending, particularly in credit extending, investment in bonds in terms of major shareholders, managers, executives and their relevant persons.

- The credit extending, credit quality (including guarantees, purchase of unlisted corporate bonds, debt purchase) of credit institutions and branches of foreign banks, particularly in the following cases:

+ Managers, executives, shareholders, groups of shareholders of credit institutions and their relevant persons;

+ Subsidiary companies, associate companies and their relevant persons;

+ Amounts receivable, trust, buying/selling forward, debt sale and right of recourse;

+ Loans for contributing capital to or purchasing shares of the credit institutions that extend credit (creditor), other credit institutions and enterprises being subsidiary companies, associate companies of the credit institutions being creditors;

+ Clients those are guaranteed by stocks, financial instruments of such credit institution or its subsidiary companies, associate companies;

+ Lending and buying bonds of subsidiary companies, associate companies of the credit institution;

+ Provide clients with loans to contribute capital to other credit institutions on the basis of receipt of collateral in form of stocks, financial instruments of such credit institution that receives the stakes;

+ Loans that enable clients to offer guarantees in form of stocks, financial instruments of other credit institutions.

- The extent of compliance with regulations on debt classification, building up loan loss reserves, interest exemption or reduction, particularly in those debts of which interests receivable are greater than the principal balance, those debts posing risks of becoming bad debts; and determination of amounts of loan loss reserves/additional reserves as prescribed by laws.

- Debt restructuring, debt extension and adjustments to repayment periods, in which debts of class 1, class 2, class 3 and restructured debts shall remain unchanged as prescribed in Decision No. 780/QD-NHNN dated April 23, 2012 of the Governor of the State Bank.

- Bad debts with and without collaterals, including guarantees with property (real estate, goods, materials/supplies, stocks, bonds, financial instruments and other current assets).

- The settlement of bad debts by using loan loss reserves, debt sale, obtaining collaterals in place of debt repayment obligations, collateral sale, debt to equity conversions; the extent of compliance with regulations on using reserves for settlement of bad debts, particularly in those debts involved in violations during the credit extending process, debts of major shareholders, managers, executives and their relevant persons.

- The extent of compliance with regulations on sale and settlement of bad debts with Vietnam Asset Management Company (VAMC) and other entities, building up of loan loss reserves against special bonds; recovery and settlement of those debts sold to VAMC.

- Evaluation of loans with interests, new loans for repayment of old debts, capitalized interests.

- Consideration of credit structures, credit concentrations and credit quality (bad debts) by sectors, administrative geographic areas and clients (state-invested enterprises, other enterprises, individuals, households and other entities).

- Pledging of stocks, bonds, and financial instruments of other credit institutions and enterprises.

- Debt purchase (spot, forward, repo, sale with right of recourse, sale of shares of other credit institutions in the form of deferred payments); particularly in sale of bad debts to other credit institutions, enterprises and assets management companies of credit institutions.

- The initiation of credit programs/policies (loans for buying houses, fishing boat building; credit for agriculture and rural areas as prescribed in Decree No. 55/2015/ND-CP...) for a number of special entities, beneficiaries of incentive policies.

- Credit extending in the fields of real estate, securities, consumption, and passbook pledged loans.

- Credit extending for BOT, BT projects; and credit extended exceeding limits as approved by the Prime Minister and/or the State Bank.

1.4.3. The extent of compliance with regulations on: capital mobilization, interests on capital mobilization and regulations on reserve requirement.

1.4.4. Financial investment and other credit assets:

- The extent of compliance with regulations on financial investment, procurement of property;

- Evaluation of risks, efficiency and impact of investments, capital contribution, and share purchase, operation of domestic and foreign subsidiary companies, associate companies on the safety and efficiency of parent credit institutions;

- Evaluation of the capital contribution and share purchase of a credit institution to enterprises being shareholders, and capital contributors of such credit institution;

- Evaluation of recoverability of investments and other credit assets.

1.4.5. Foreign exchange transactions and gold trading:

- The extent of compliance with regulations on sale of foreign currencies, foreign currency statuses;

- The extent of compliance with regulations on gold trading (mobilization, bailment, lending, issuance of financial instruments, gold position, pledge, escrow deposit);

- The indirect investment, fund transfer, foreign loans, including braches, subsidiary companies, and parent companies overseas;

- The borrowing and capital mobilization from parent credit institutions overseas or international market.

1.4.6. Other operations:

- Offer and acceptance of trusteeship; amounts receivable and payable;

- Capital transactions, financial transactions, purchase of debts and property among parent companies, subsidiary companies, domestic and foreign affiliated entities; notes on requirements for revenues being recorded when substantial risks and benefits of the property have been transferred to the buyer to avoid the case that the credit institution records unqualified profits.

- Interbank operations: scope, terms, interests and level of risks of loans, deposits, acceptance of loans and deposits, sale/purchase of financial instruments of credit institutions; bad debts and non-performing assets in interbank operations:

- The extent of compliance with regulations on use of refinancing, State’s subsidies to loans in the fields of agriculture and rural areas (conditions for decrease in reserve requirement rates, conditions for refinancing and use of refinancing); loans for purchase/lease of housing; etc.

- Inspection of the extent of compliance with regulations on treasury safety.

1.5. Inspection of the implementation of plans for restructuring and plans for settlement of bad debts that are approved by competent authorities and the implementation of directions of the State Bank and competent authority in terms of restructuring and settlement of bad debts of credit institutions, in which it is required to specify the implementation progress, results of settlement of bad debts, difficulties, problems and reasons for the plans.

1.6. Inspection of the extent of compliance with regulations on prevention and combating of money laundering.

1.7. Inspection of the extent of compliance with regulations on escrow deposit and management of escrow deposit at commercial banks.

1.8. Inspection of the extent of compliance with regulations on security and safety in e-payment system as well as card readers during the provision of services.

1.9. Inspection of the extent of compliance with regulations on off-balance sheet accounting.

1.10. With regard a people s credit fund, apart from the above-mentioned matters to be inspected, the following matters shall be also clarified as follows: :

- Capital mobilization and loans granted to entities other than members of the people’s credit fund;

- Bad debts, quality of loans granted to members/clients other than members of the people’s credit fund;

- The extent of compliance with regulations on ownership of charter capital; loans granted to managers, executives and their relevant persons;

- Management of cash funds, mobilized capital, loans, debt collection, and disbursement;

- Provision of payment services;

- The extent of compliance with regulations on capital preservation and regulation fund:

- Capital structures, credit concentrations according to major customers, managers, executives and their relevant persons.

- Area of operation and scope of operation in relation to the capacity of management, executive and the provisions of law;

- Investment and deposits at other credit institutions and acceptance of deposits and loans of other credit institutions.

1.11. Inspection of other matters (if any): The person issuing the inspection decision shall decide specific inspection contents in accordance with nature and requirements for each inspected entity.

2. Inspected entities being juridical persons

2.1. Domestic credit institutions (11 entities):

(i). Contents of inspection: Matters prescribed in Point 1 Section I Part three of the Inspection Plan shall be inspected:

(ii) Inspected entities:

- Commercial banks (06 entities):

Vietnam Prosperity Joint Stock Commercial Bank (VPBank); National Citizen Commercial Joint Stock Bank (NCB); Vietnam Asia Commercial Joint Stock Bank (VietABank); An Binh Commercial Join Stock Bank (ABBank); Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank); Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank).

With regard to VPBank and VietBank, apart from the above-mentioned matters to be inspected, the inspection of the extent of compliance with regulatiosn on prevention and combating of corruption and crime shall be also added to an inspection visit to a juridical person.

- Domestic non-banking credit institutions and microfinance institutions (05 entities):

Post and Telecommunication Fiannce Company Limited (PTFinance); Vietnam Shipbuilding Finance Company Limited (VFC); Agribank No.1 Leasing Company (ALCI); M7 – Microfinance Institution Limited (M7-MFI); Tinh Thuong Microfinance Institution (TYM).

2.2. Foreign credit institutions (16 entities):

(i). Contents of inspection: Matters prescribed in Point 1 Section I Part three of the Inspection Plan shall be inspected:

(ii). Inspected entities:

- Wholly foreign-owned banks, financial companies, finance leasing companies (06 entities):

Australia and New Zealand Banking (ANZ Bank); HSBC Bank (Vietnam) Ltd. (HSBC); Chailease International Leasing Co., Ltd. (CILC); Toyota Financial Services Vietnam Company Limited (TFSVN); Vietnam International Leasing Company Limited; Kexim Vietnam Leasing Co., Ltd. (KVLC).

- Branches of foreign banks (10 entities):

Citibank, N.A. Hanoi Branch; Citibank, N.A. Ho Chi Minh City Branch; Keb Hana Bank Hanoi Branch; Bangkok Bank Public Company Limited Ho Chi Minh City Branch; Industrial Bank of Korea Hanoi Branch; Industrial Bank of Korea Ho Chi Minh City Branch; Bank of China Ho Chi Minh City Branch; Overseas Chinese Banking Corporation (OCBC) Ho Chi Minh City Branch; JPMorgan Chase Ho Chi Minh City Branch; First Commercial Bank Ho Chi Minh City Branch.

II. THEMATIC INSPECTION (07 entities)

1. Sai Gon Joint Stock Commercial Bank (SCB): inspect the implementation of restructuring plans, determination and accounting of interests receivable

2. Tien Phong Commercial Joint Stock Bank (TPBank): inspect the credit extending.

3. Vietnam Maritime Commercial Stock Bank (MSB): inspect the credit extending, implementation of restructuring plans, determination and accounting of interests receivable.

4. Bao Viet Joint Stock Commercial Bank (BVB): inspect the credit extending and settlement of bad debts.

5. HD Saison Finance Co., Ltd. (HD Saison):  inspect the credit extending.

6. Vietnam Public Joint Stock Commercial Bank (PVcomBank): Inspect the determination and accounting of interests receivable.

7. Vietnam Bank for Agriculture and Rural Development (Agribank): inspect the credit extending, implementation of restructuring plans.

With regard to Vietnam Maritime Commercial Stock Bank (MSB) and Tien Phong Commercial Joint Stock Bank (TPBank), apart from the above-mentioned matters to be inspected, the inspection of the extent of compliance with regulations on prevention and combating of corruption and crime shall be also added to a thematic inspection.

Part 4

IMPLEMENTATION ORGANIZATION

I. RESPONSIBILITIES

1. Bank Supervision and Inspection Agency

1.1. Direct, expedite, inspect and supervise the implementation of Inspection Plan in branches of the State Bank in provinces and cities; closely cooperation with branches of the State Bank in provinces and cities in initiation of the Inspection Plan and direct Inspectorates; monitor and expedite the fulfillment of responsibilities assigned to branches of the State Bank in provinces and cities; address issues within their competence or request the Governor of the State Bank and competent authorities to address difficulties arising during the implementation of Inspection Plan in 2017.

1.2. Carry out inspection of entities under responsibilities of Bank Supervision and Inspection Agency. In which:

- Period and starting time of inspections carried out by Department of inspection and supervision of domestic credit institutions (Department I); Department of inspection and supervision of foreign credit institutions (Department II); Department of administrative inspection, handling of complaints and prevention and combating of corruption (Department III) shall be subject to decision of the Chief Banking Inspector-Supervisor.

- Period and starting time of inspection carried out by Department of inspection and supervision of banks in Hanoi (Department I) shall be subject to decision of Director of Department I;

- Period and starting time of inspection carried out by Department of inspection and supervision of banks in Ho Chi Minh City (Department II) shall be subject to decision of Director of Department II.

1.3.. Bank Supervision and Inspection Agency (Department I, II, III) shall, according to this Inspection Plan, formulate a plan for initiation of inspection visits to inspected entities assigned in this Plan in accordance with regulations of law and actual condition; and cooperate with branches of the State Bank in provinces and cities during the implementation.

With regard to Hanoi and Ho Chi Minh City, the Bank Supervision and Inspection Agency (Department I, II) shall, according to the Inspection Plan and requirements pertaining to management, inspection and supervision in the cities, formulate a plan for initiation of inspection visits to inspected entities assigned in this Plan in accordance with regulations of law and actual condition; and cooperate with branches of the State Bank in provinces and cities during the implementation.

2. Branches of the State Bank of provinces and central-affiliated cities (except for branches of Hanoi and Ho Chi Minh City)

Pursuant to the Inspection Plan and requirements pertaining to inspection and supervision in the administrative divisions, Directors of branches of the State Bank of provinces/cities shall direct the formulation of specific inspection plans to inspected entities in the administrative divisions in accordance with regulations of law and actual condition; period and starting time of inspections shall be subject to decision of the Directors of branches of the State Bank of provinces/cities.

3. A list of inspection visits in 2017shall be issued herewith, in which inspection contents, inspected entities, and agencies in charge shall be specified.

II. REPORTING

1. Bank Supervision and Inspection Agency

Consolidate the reports on implementation of Inspection Plan from Bank Supervision and Inspection Agency and branches of the State Bank of provinces and cities and send a consolidated report to the Governor of State Bank before December 31, 2017.

2. Branches of the State Bank of provinces and central-affiliated cities (except for branches of Hanoi and Ho Chi Minh City)

2.1. Consolidate the reports on implementation of Inspection Plan in 2017 in the administrative divisions and send a consolidated report to Bank Supervision and Inspection Agency no later than December 17, 2017.

2.2. Send monthly reports to the Governor of the State Bank (via Bank Supervision and Inspection Agency) no later than every 17 of the reporting month: (i) results, difficulties, and progress of Inspectorates assigned in the Inspection Plan; and (ii) proposals for effective implementation of Inspection Plan in 2017.

2.3. Directors of branches of the State Bank of provinces and cities (except for branches of Hanoi and Ho Chi Minh City) shall approve their Inspection Plan in 2017 and send a report to the Governor of the State Bank (via Bank Supervision and Inspection Agency) before January 31, 2017, and direct the inspection and supervision agencies of branches of the State Bank of provinces and cities to initiate the approved Inspection Plan.

2.4. The Inspection Plan in 2017 of each branch of the State Bank of province/city must specify: number of inspection visits; inspected entities; inspection schedule; inspection period; purposes, requirements, and contents of inspection; a list of inspection visits, a list of specialized inspection visits issued together with the Inspection Plan.

Difficulties that arise during the implementation of this Circular should be reported to Bank Supervision and Inspection Agency (via Department of banking system safety supervision) for consideration./.

LIST

OF INSPECTION VISITS IN 2017
(Issued together with Decision No. 2336a/QD-NHNN dated November 25, 2016 of the Governor of the State Bank)