Press Release on issuance of Circular No.08/2017/TT-NHNN
The State Bank of Vietnam (SBV) issued Circular No.08/2017/TT-NHNN on August 1, 2017 on orders and procedures for banking supervision.
The Circular was promulgated in accordance with Item 5 of Article 51 of Law on the State Bank of Vietnam 2010. Accordingly, the SBV Governor stipulates orders and procedures for banking supervision.
The Circular was applied to: (i) Inspectors and supervisors of the banking sector; (ii) SBV municipal and provincial branches under the central government; (iii) credit institutions and foreign bank branches; (iv) agencies, organizations and individuals related to the supervision of credit institutions and foreign bank branches.
The Circular includes 4 Chapters and 25 Articles as follows:
- Chapter I: General provisions (including 5 Articles) stipulating: governing scope; implementers; Interpretation; principles of banking supervision; substances, orders and procedures for banking supervision.
- Chapter II: Specific provisions stipulating orders, procedures for banking supervision (including 6 Items 14 Articles). Accordingly, Chapter II of the Circular consists of legal framework regulations and steps of banking supervision (of which, dividing into substances of micro-and macro-prudential supervision) such as: collecting, filing, processing and storing information, data and documents; analyzing, assessing supervised entities under two forms of micro-and macro-prudential supervision; contacting with supervised entities; supervising after inspection and recommending handling measures related to banking supervision.
- Chapter III: Responsibilities of institutions concerning with banking supervision (including 4 Articles) stipulating responsibilities of Banking Supervision Agency, SBV municipal and provincial branches under the central government, other SBV relevant entities, banking supervised objects.
- Chapter IV: Implementation (including 2 Articles) stipulating effectiveness and implementation responsibility.
The Circular will take effect from December 1, 2017.
Translated by Le Hang