Press Release on the issuance of Circular No.04/2018/TT-NHNN
March 12, 2018 – The Governor of the State Bank of Vietnam (SBV) issued Circular No.04/2018/TT-NHNN (Circular 04) amending and supplementing a number of articles of Circular No.08/2017/TT-NHNN dated August 01, 2017 stipulating the sequences and procedures for banking supervision (Circular 08).
The Law Amending and Supplementing a number of articles of the Law on Credit Institutions No.17/2017/QH14 dated November 20, 2017 stipulating that the SBV shall specify the substances of Article No.130a (applying early interventions to credit institutions, foreign bank branches). The issuance of Circular 04 is aimed at implementing the above-mentioned regulation as stipulated in the Law Amending and Supplementing a number of articles of the Law on Credit Institutions, with a supplement that early interventions can be used as one of the measures for banking supervision. Moreover, the new Circular also stipulates the sequences and procedures for the application of the early interventions, the monitoring, direction and evaluation of the performance of corrective measures by the credit institutions and the foreign bank branches to which the early interventions are applied.
The new Circular is composed of three articles, specifically as follows:
- Article 1: Amending and supplementing a number of articles of Circular No.08/2017/TT-NHNN dated August 01, 2017 stipulating the sequences and procedures for banking supervision.
+ Amending and supplementing Article 17 of Circular 08, with a supplement that early interventions can be used as one of the measures for banking supervision.
+ Supplementing a new Article 18a to Article 18 of Circular 08, which specifies the sequences and procedures for applying the early interventions to the supervised institutions.
+ Supplementing a new Article 19a to Article 19 of Circular 08, which stipulates the monitoring, direction and evaluation of the performance of corrective measures by the supervised institutions.
- Article 2: Arrangements for the implementation
- Article 3: Effectiveness: this new Circular takes effect from July 1, 2018.
Translated by Le Hang