Trang Chủ
Practical implementation of coordination, provision and exchange of information with the SBV branches
In 2022, the Branch encountered not a few of difficulties and challenges in implementing the work plan according to its assigned functions and tasks. However, beside the close attention and direction of the Deposit Insurance of Vietnam (DIV), along with solidarity and efforts of its leaders and staff, the Branch gradually overcame difficulties and completed the yearly work plan with some remarkable achievements.
Specifically, the Branch supervised 100% of insured institutions (158 insured institutions, including 155 People's Credit Funds and 03 commercial banks), and gave prompt warnings of and prevention from violations and weaknesses of insured institutions in order to avoid unexpected incidents causing insecurity and disorder in the area. The Branch well managed the calculation and collection of DI premium with the 2022 premium total of VND 16.7 billion, up 6.4% over the previous year; completed examinations at 34 insured institutions, reaching 117% of the work plan, including 04 people's credit funds (PCFs) subject to prudential examination under the direction of the SBV Governor and coordinated examination on a large scale at 06 transaction points of 01 commercial bank; successfully organized 02 communication events on DI policy with the participation of representatives of 49 PCFs in 02 provinces/cities of the Mekong Delta region.
To achieve the above results, it is necessary to coordinate with and get support from the SBV branches. Specifically, the SBV branches coordinated and supported the Branch to successfully organize 02 communication events to disseminate DI policies in Tra Vinh and Soc Trang; coordinated with the Branch to carry out the examinations at 34 insured institutions in 08 provinces and 01 city, of which there were 04 PCFs subject to examination under the SBV Governor’s direction, and at the same time, coordinated in post-examination handling of violations; timely notified of the revocation of the PCF’s operational license …
Being aware of the importance of coordinating, providing and exchanging information with the SBV branches at the localities, the Branch has actively researched the contents of information sharing and reporting forms to the SBV branches, then properly implemented the contents under the DIV’s guidance, particularly since the Circular No.34/2016/TT-NHNN dated December 28, 2016 of the SBV Governor stipulating information provision between the SBV and DIV was issued and took effect.
In order to strengthen the management of PCFs, the SBV Governor issued the document No. 8169/NHNN-TTGSNH on November 9, 2020, directing the implementation of a number of immediate solutions, including directing the SBV provincial/city branches to “develop working regulations and exchange information with the Cooperative Bank branches and the DIV branches”. To carry out this section, the Branch assigned the functional departments to study the SBV Governor’s documents and of the DIV in order to implement the works such as contacting, exchanging, developing and commenting on the contents, then reaching an unanimous agreement on the coordination regulations between the SBV branches and the Branch.
At the early time, although many obstacles caused by the Covid-19 pandemic limited traveling to negotiate and sign with the SBV Branches on the Coordination Regulation, the Branch made efforts to overcome and exchange information remotely through calls, timely sent the SBV branches documents containing the regulatory framework to study, consult with, give comments, and then agreed to sign on the contents. For more than 18 months of implementation, by June 2022, the Branch completed the signing of coordination regulations with 13 SBV branches in the Mekong Delta, reaching 100% as required.
After a period of implementing the coordination regulations with the SBV branches, in addition to regularly coordinating and exchanging information with the SBV branches by telephones, text messages through the Banking Supervision Agency, the Branch also sent 108 documents to coordinate and exchange information on re-granting certificates of DI participation according to the new DI limit, on-site examinations, supervision, special control and communication; at the same time, received 85 documents of the SBV branches on coordinating and exchanging information, mainly about examination and special control.
The signing of the coordination regulations with the SBV branches has brought some practical results, contributing to enhancing accountability of the parties in exchanging and providing reports; and minimizing difficulties for the Branch in exchanging and exploiting information from the SBV when implementing professional activities.
Determining the importance of coordination and information exchange with the SBV branches in implementing assigned functions and tasks, besides proactively following up and implementing the approved contents in the coordination regulations, the Branch also focuses on maintaining support and coordination with the SBV branches at the localities where the Branch is in charge of by implementing a number of measures such as:
Appoint leadership representatives to attend quarterly preliminary conferences and symposiums when invited by the SBV branches;
Attend the PCF’s member congresses to coordinate with the dissemination of DI policies, and at the same time, make contacts and meetings, exchange information with the SBV branch representatives;
Invite the SBV branches to participate in task implementation conferences, symposiums or communication events organized by the Branch;
Through on-site examination teams, staff members participating in special control at PCFs to strengthen cohesion and tighten relationships to enlist the support and favorable conditions of the SBV branches at the localities.
Some suggestions and recommendations
In order to enhance the efficiency of utilizing and exchanging information with the SBV branches at the localities, the Branch draws some lessons from experience and sets out some orientations to implement in the coming time, specifically:
Continue to closely follow and successfully implement the contents of the signed coordination regulations. Actively coordinate and exchange information with the SBV branches at the localities about the operational situation of the PCF system, abnormal signs and risks in its operation. Timely grasp the causes of weaknesses, operational situation and handling direction of the SBV;
Strengthen and maintain a supportive and well-coordinated relationship with the SBV through examination, supervision, communication and special control;
Meet up and communicate with representatives of the SBV's branches through conferences, seminars, and the PCF members' congresses to maintain regular and long-lasting relationships with the SBV branches at the localities;
Enhance the role of the Branch in participating further in the restructuring process of credit institutions under special control, namely in-depth research and active participation in evaluating the feasibility of recovery measures at PCFs under special control when getting written requests from the SBV branches;
More closely coordinate with the SBV branches in monitoring public opinion and depositors' sentiment at troubled credit institutions to promptly develop communication plans and answer depositors' inquiries when unusual developments occur;
Research and discuss with the SBV branches on the content that remains in the implementation process in order to make proper adjustments and implement more effectively.
