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Examination of public institutions over the past years
After the Law on Deposit Insurance (DI) was promulgated by the National Assembly and took effect, based on the provisions of the Law, the Board of Directors of the DIV (BoD) issued the Decision No. 801/QD-BHTG-HĐQT dated December 30, 2015 on issuing the Regulation on examination of public institutions conducted by the DIV (Regulation 801), this is the basis for the DIV's examination teams to implement examination activities in a synchronous and systematic manner in in accordance with the functions and duties provided by the Law on DI. active, over more than 5 years of implementing Regulation 801, the DIV has successfully completed the examination of about 400 accredited institutions annually in terms of their compliance with the legal provisions on DI.
The DIV’s examination of each insured institutions has been carried out according to its approved examination plan. During the examination process, the members of the examination team have strictly performed their assigned tasks and coordinated well to solve arising problems, speed up the work progress, and complete the tasks well. Through examinations, the DIV has detected and recommended examination institutions to overcome limitations in displaying DI certificates; managing, accounting insurable deposits; identifying insurable deposits to assess and pay DI premiums; complying with the regulations on reporting information to the DIV...; as well as in complying with the SBV's stipulations on mobilizing deposits. The DIV‘s recommendations have been taken seriously by public institutions and have made positive changes in their operations, thereby contributing significantly to building the image and enhancing the reputation of the DIV.
In addition, the DIV's branches have regularly coordinated with the SBV in examinations, especially in the handling of the examination results, thereby receiving the support and coordination of the SBV's branches in the examinations and handling of the existing problems after the examinations. This close coordination has been formed by the DIV’s branches before the examinations, during the development of the examination plan to avoid overlaps. After these examinations, the results have been notified to the Banking Supervision Agency (BSA), the SBV's provincial/city branches, together with clear recommendations on co-solving violations detected through the examinations. The information provided by the DIV about the situations of the examination institute institutions has helped the SBV to promptly detect the violations of credit institutions and take remedial measures, thereby increasingly affirming the importance of the deposit insurer's examination activities.
However, through the process of implementing Regulation 801 and monitoring, synthesizing examination results throughout the DIV's system, it shows that some contents of Regulation 801 were no longer relevant and needed to be revised in order to contribute to further enhance the efficiency of the examination activities in the coming time. At the same time, since 2019 to now, in order to well implement the tasks under the directions set by the Prime Minister in the Directive No. 06/CT-TTg dated March 12, 2019 on strengthening the People's Credit Fund (PCF) system and ensuring its operational safety and by the SBV’s Governor in the Directive No. 06/CT-NHNN dated October 2, 2018 on rectifying and strengthening prevention and combat against law violations in order to ensure security and safety in the operation of the PCF system, DIV has supported the SBV's inspection and supervision over people's credit funds by sending staff to join the inspection teams of the SBV's provincial/city branches and set up their own examination teams to examine PCFs as required by the SBV.
Removing difficulties and improving the efficiency of examinations conducted by the DIV
Facing that fact, the BoD has included the work of amending and supplementing Regulation 801 into the program to build the DIV's governance and administration documents in 2021, in which, the Examination Department at the Headquarters has been assigned as the focal point in drafting a Decision amending and supplementing a number of articles of Regulation 801. Through the developing, consulting and appraising process, on September 27, 2021 the BoD issued the Decision No. 609/QD -BHTG on amending and supplementing a number of articles of the Regulation on examination of public institutions conducted by the DIV, issued together with the BoD’s Decision No. 801/QD-BHTG-HĐQT dated December 12, 2015 (Decision 609).
Accordingly, Decision 609 amends 15 articles and clauses in Regulation 801, and at the same time adds 01 new item (with 03 articles), 01 article and 01 clause in Article. The following are notable new points in Decision 609:
First, supplementing the stipulation as to intepretation in order to clarify the subjects relating to examination: examination units, examination subjects, transaction points of examination subjects, examination team members, examination decision maker ; at the same time, adding stipulations regarding large-scale examination of the Head Office and some or all transaction points of examination subjects as well as concerning examination of PCFs at the request of the State Bank to be consistent with the reality of determining the subjects and nature of current examination activity.
Second, amending and supplementing the purposes of and basis for examination to be consistent with the actual implementation of the examination activity at PCFs at the request of the SBV, which the DIV has carried out since 2019 to now.
Third, amending and supplementing provisions covering examination contents, specifically, abolishing the checking of "changes and additions to legal documents for participation in DI" (including establishment and operation licenses; certificates of business registration); amending examinations related to certificates of DI; receiving covered deposits; adding examination of PCFs at the request of the SBV; as well as the way examination decision makers define and make decisions related to specified examination contents.
Fourth, amending stipulations covering examination time limits and examination periods to suit the reality of conducting examinations, specifically, increasing the examination time limit at the head office of commercial banks, the co- operative bank from “no more than 15 working days” to “no more than 20 working days”; adding provisions to clarify the examination period for each specific case; at the same time, adding stipulations regarding examination time limits and examination periods for PCFs at the request of the SBV.
Fifth, amending and supplementing stipulations related to examination plans: delaying the deadline for submitting examination plans for approval to be consistent with the Regulations on the preparation and implementation of the DIV's financial plan ( no later than September 30 of each year); adding the assignment of large-scale examination plans to examination units for implementation; adding a stipulation as to sending the DIV’s examination plans to the BSA and the SBV’s branches in accordance with the regulations on information provision between the SBV and DIV.
Sixth, adding 01 section covering the implementation of PCF examination plans at the request of the SBV in accordance with reality, including: developing and approving examination implementation plans; conducting examinations and notifying the examination implementation plans at the request of the SBV to the BSA and the SBV’s branches.
Seventh, amending and supplementing a number of provisions related to the preparation for conducted examinations, including: Supplementing the required elements in the examination decision; Amending and supplementing stipulation regarding notification of large-scale examination plans.
Eighth, amending and supplementing a number of provisions related to examination teams in accordance with the current way of organizing the examination team, including: adding the stipulation as to the Deputy Head of the examination team and the Head of the examination group; amending and supplementing the stipulation regarding the change of the Head of the examination team and the change and supplementing of members of the examination team; supplementing related provisions to relations between the Deputy Head of the examination team and the head and other members.
The above are noticeable new points in the Decision No. 609/QD-BHTG on amending and supplementing a number of articles of the Regulation on the DIV’s examination over announced institutions issued together with the BoD’s Decision No. 801/QD-BHTG-HĐQT dated December 30, 2015. With the amendments and supplements to this Regulation, it is certain that the quality of the DIV's examination activity will be improved, meeting the requirements set by the SBV and the DIV's leaders, as well as solving difficulties and problems in the actual implementation.
